Myth: Assessed value should be the same as market value.
Reality: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always.
Generally when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the area have not been reassessed for quite a while, it may vary widely.
Myth: The buyer or the seller can have some pull in the value of the home depending upon for whom the appraiser is working.
Reality: The price of the property does not affect the pay of the appraiser; because of this, the appraiser has no pressured interest in the price of the property. What this means is he will conduct business with impartiality and independence regardless of for whom the appraisal is provided.
Myth: Market value should mirror replacement cost.
Reality: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a certain home, with neither being under undue influence to buy or sell.
If the house were reconstructed, the dollar amount required to do so would be the replacement cost.
Myth: Specific methods, such as the price per square foot of the property, are what appraisers use to ascertain the value of a property.
Reality: An appraisal report is a collection of information concluded from the property's size, location, proximity to undesirable facilities, the condition of the property and the values of recent comparable sales. You can count on Don C. Box and Associates's appraisers to be forthright in assessing this information.
Myth: When the economy is strong and the sales prices of properties are reported to be appreciating by a certain percentage, the other homes in the area can be expected to increase based on that same percentage.
Reality: An increase in value of a specific property has to be concluded on an individualized basis, factoring in data on comparable properties and other relevant considerations.
It doesn't matter if the economy is on the rise or declining.
Myth: You can often see what a home is worth simply by looking at the outside.
Reality: To find a definite value beyond all doubt, an appraiser must examine the home on a variety of factors based on location, condition, improvements, amenities, and market trends.
An outside-only inspection certainly can't provide all of the information needed.
Myth: Because consumers pay for appraisals when applying for loans to buy or refinance their house, they legally own their appraisal report.
Reality: The report is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document.
Consumers must be provided with a copy of the document upon written request due to the Equal Credit Opportunity Act.
Myth: There's no point for home buyers to even concern themselves with what the appraisal report contains so long as their lender is fine with the contents therein.
Reality: Only when consumers read a copy of their 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.
There is a great deal of data stored in an appraisal that can be useful to the consumer in the future, such as 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: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a home during a sales transaction involving a lender.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a variety of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: There's no reason to get an appraisal if you have had a home inspection.
Reality: A home inspection report has a completely different purpose than an appraisal report.
The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report.
A home inspector determines the condition of the home and its major components and reports these findings.
