Myth: Assessed value should be similar to market value.
Reality: While most states back the idea that assessed value is the same as estimated market value, this usually is not the case.
Examples include when interior reconstruction has occurred and the assessor is unaware of the improvements, or when homes in the area have not been reassessed for an extended time.
Myth: The buyer or the seller sometimes may have an influence in the cost of the property depending upon for whom the appraiser is working.
Reality: The cost of the property does not affect the payment of the appraiser; due to this, the appraiser has no vested interest in the opinion of value of the house. Obviously, he will conduct task with impartiality and independence regardless of for whom the appraisal is provided.
Myth: Any time market value is determined, it should match the replacement cost of the home.
Reality: The way market value is derived is based on what a buyer would likely pay a willing seller for a house without being under influence from any outside group to purchase or sell.
If the house were rebuilt, the dollar amount needed to do so would be the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to come to the value of a house.
Reality: An appraisal report is a collection of data based on the home's size, location, proximity to some facilities, the condition of the home and the values of recent comparable sales. You can depend on Crest Appraisal Services's staff to be ethical in assessing this data.
Myth: In a strong economy - when the values of houses in a given area are found to be increasing by a certain percentage - the values of individual properties in the proximity can be expected to appreciate by that same percentage.
Reality: Any value an appraiser reports concerning a particular house is always personalized, based on certain factors found from the information of comparable homes and other considerations within the house itself.
It makes no difference if the economy is powerful or bad.
Myth: Just seeing what the property looks like on its exterior gives an excellent idea of its value.
Reality: There are a multitude of different factors that determine the value of a home; these factors include area, condition, improvements, amenities, and market trends.
Obviously, none of these variables can be found just by viewing the property from the outside.
Myth: Since you're the one funding for the appraisal when applying for your loan to purchase or refinance your home, you own the ordered appraisal.
Reality: Unless a lending agency releases its interest in the document, it is legally owned by the lending company that purchased the appraisal.
Consumers have to be provided with a copy of the document through request because of the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even worry about what the appraisal report contains so long as their lending company is satisfied.
Reality: It is very important for consumers to peruse a copy of their appraisal report so that they can verify the accuracy of the document, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a great deal of data stored in a report that will probably 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 region.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a home during a sales transaction involving a lending company.
Reality: Based upon their qualifications and designations, appraisers can and may provide a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal report is the same as a home inspection report.
Reality: An appraisal does not serve the same purpose as an inspection report.
The job of the appraiser is to form an opinion of value in the appraisal process and through creating the report.
A home inspector determines the condition of the building and its major components and reports these findings.
