Myth: The value that is assessed by the appraiser will be equivalent to the market value.
Reality: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always.
Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when properties in the area have not been reassessed for an extended period of time.
Myth: The buyer or the seller may have leverage in the value of the house depending upon for whom the appraiser is working.
Reality: The value of the property does not affect the pay of the appraiser; because of this, the appraiser has no personal interest in the value of the house. Obviously, he will complete his task with impartiality and independence regardless of for whom the appraisal is produced.
Myth: Any time market value is established, it should match the replacement cost of the house.
Reality: Market value is found by what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under duress to buy or sell.
If the home were rebuilt, the dollar amount required to do so would make up the replacement cost.
Myth: Certain methods, like the price per square foot, are the methods appraisers use to determine the value of a house.
Reality: An appraisal is an amalgamation of information concluded from the house's size, location, proximity to specific facilities, the condition of the house and the values of recent comparable sales. You can depend on Beaird Organization's appraisers to be professional in assessing this information.
Myth: When the economy is on the rise and the sales prices of homes are reported to be rising by a certain percentage, the other houses in the proximity can be expected to appreciate based on that same percentage.
Reality: An increase in value of a specific property must be concluded on an individualized basis, factoring in information on comparable homes and other relevant elements.
It makes no difference whether the economy is good or poor.
Myth: The home's outside is determinate of the actual value of the house; there is no need to do an interior appraisal.
Reality: To conclude a concrete value beyond all doubt, an appraiser must assess the home on a variety of factors based on location, condition, improvements, amenities, and market trends.
An external inspection certainly can't provide all of the information necessary.
Myth: Since the consumer is the person who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Reality: Legally, the appraisal report is owned by the lending agency unless the lender releases their interest in the document.
Due the Equal Credit Opportunity Act, any consumer requesting a copy of the document must be given it by their lending agency.
Myth: There's no need for consumers to even worry about what the report contains so long as their lending institution is satisfied.
Reality: It is very important for home buyers to peruse a copy of their report so that they can double-check the accuracy of the document, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal report makes an excellent record for future reference, containing 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 vicinity.
Myth: The only reason someone would order an appraisal is if a house needs its value assessed in a lender sales transaction.
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: An appraisal report does not fulfill the same purpose as an inspection.
The purpose of an appraisal is to form an opinion of market value during the appraisal process and the completion of the appraisal.
House inspectors will create a report that will show the condition of the house and its major components and possible damage.
