Myth: Market value will be the same as the assessed value of the property.
Reality: While most states uphold the concept that assessed value is equal to estimated market value, this generally is not the case.
Interior reconstruction that the assessor is unaware of and a dearth of reassessment on nearby houses are prime examples of why there might be a differential in price.
Myth: The buyer or the seller may have some pull in the cost of the home depending upon for whom the appraiser is working.
Reality: The opinion of value of the house does not affect the pay of the appraiser; because of this, the appraiser has no personal interest in the value of the house. This means that he will conduct job with impartiality and independence regardless of for whom the appraisal is conducted.
Myth: The replacement value of the property is always in line with the market value.
Reality: Market value is found by what a willing buyer would likely pay a willing seller for a certain house, with neither being under undue influence to buy or sell.
The dollar amount demanded to reconstruct a property is what forms the replacement cost.
Myth: There are certain ways that real estate appraisers use to find the value of a home, like the price per square foot.
Reality: An appraisal report is a collection of information concluded from the house's size, location, proximity to undesirable facilities, the condition of the property and the values of recent comparable sales. You can rely on Jordan-Appraisal's appraisers to be professional in assessing this data.
Myth: When the economy is strong and the sales prices of homes are reported to be increasing by a certain percentage, the other homes in the vicinity can be expected to rise based on that same percentage.
Reality: The appreciation of a certain home is always concluded on a case-by-case basis, factoring in information on comparable homes and other relevant elements.
It makes no difference whether the economy is robust or poor.
Myth: You can usually tell what a home is worth simply by looking at the exterior.
Reality: To find a conclusive value beyond all doubt, an appraiser must examine the house on a variety of factors based on location, condition, improvements, amenities, and current market trends.
There's no possible way to get all of this information from simply examining the house from the outside.
Myth: Since you're the one funding for the appraisal when applying for your loan to buy or refinance your house, you own the provided appraisal report.
Reality: The report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the document.
Consumers must be provided with a version of the report upon written request due to the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their appraisal document so long as it exceeds the needs of their lending institution.
Reality: A consumer should definitely read through their appraisal; there could be some questions or some worries about the accuracy of the analysis that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the report makes a near perfect record for future reference, filled with useful and often-revealing data - including the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the proximity.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a property during a sales transaction involving a lender.
Reality: Appraisers can have many different qualifications and designations which allow them to provide a multitude of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: A home inspection serves a completely different purpose than an appraisal.
The task of the appraiser is to find an opinion of value in the appraisal process and through creating the report.
House inspectors will compose a report that will express the condition of the house and its major components and possible damage.
