Myth: Assessed value should be equal to market value.
Reality: While most states uphold the suggestion that assessed value is the same as estimated market value, this usually is not the case.
There are times when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the neighborhood have not been reassessed for years or more, it may vary widely.
Myth: The appraised value of a house will change depending upon if the appraisal is conducted for the buyer or the seller.
Reality: The value of the home does not affect the salary of the appraiser; because of this, the appraiser has no pressured interest in the price of the property. This means that he will complete his job with impartiality and objectivity regardless of for whom the appraisal is created.
Myth: Market value will equate to replacement cost.
Reality: Market value is arrived at through what a willing buyer would likely pay a willing seller for a particular property, with neither being under undue influence to buy or sell.
The replacement cost is the dollar amount required to reconstruct a home in-kind.
Myth: There are specific methods that real estate appraisers use to find the value of a property, like the price per square foot.
Reality: An appraisal is an assertion of information based on the property's size, location, proximity to specific facilities, the condition of the house and the values of recent comparable sales. You can depend on Thomas Watts & Associates's appraisers to be honest in assessing this information.
Myth: As homes appreciate by a specific percentage - in a strong economic state - the properties in proximity are expected to increase by the same amount.
Reality: All appreciation of value is on a one-on-one basis, determined by data on relevant considerations and the data of comparable properties.
This is true in good economic times as well as poor.
Myth: Just looking at what the property looks like on its exterior gives an excellent idea of its value.
Reality: There are a number of different factors that determine the value of a home; these factors include area, condition, improvements, amenities, and market trends.
There's no real way to get all of this data from just looking at the home from the exterior.
Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their home, they own their appraisal.
Reality: The appraisal is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document.
However, home buyers have to be provided with a copy of the document upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even concern themselves with what the appraisal report contains so long as their lending company is satisfied.
Reality: Only when consumers examine a copy of their appraisal report can they verify its accuracy and know if they should ask questions. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the report makes an excellent record for future reference, filled with helpful and often-revealing data - including, but not limited to, 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 area.
Myth: Appraisals are ordered only to estimate home values in home sales involving mortgage-lending deals.
Reality: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is the same as a home inspection.
Reality: An appraisal does not serve the same purpose as an inspection.
The job of the appraiser is to conclude an opinion of value in the appraisal process and through producing the report.
The task of a home inspector is to determine the condition of the house and its main components, then produce a report on their conclusions.
