Myth: The value that is assessed by the appraiser should be exactly the same as the market value.
Reality: While most states support the suggestion that assessed value is equal to estimated market value, this often is not the case.
Generally when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the area have not been reassessed for a good length of time, it may vary widely.
Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the cost of the property will vary.
Reality: There is no real interest on the part of the appraiser in the outcome of the appraisal report, therefore he will conduct his work with impartiality and independence, regardless of for whom the appraisal is created.
Myth: Market value will mirror replacement cost.
Reality: Without any suggestion from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular home.
The replacement cost is the dollar amount needed to rebuild a home in-kind.
Myth: Certain formulae, like the price per square foot of the property, are the ways appraisers use to ascertain the value of a property.
Reality: An appraisal report is an assertion of information based on the house's size, location, proximity to certain facilities, the condition of the house and the values of recent comparable sales. You can depend on Allen Residential Appraisals, LLC's appraisers to be professional in assessing this data.
Myth: As properties increase in value by a certain percentage - in a robust economy - the homes in proximity are expected to appreciate by the same amount.
Reality: All increase of value is on a case-by-case basis, concluded by data on relevant conditions and the data of comparable homes.
It makes no difference if the economy is powerful or terrible.
Myth: The house's outside is determinate of the expected price of the house; there is no need to do an interior inspection.
Reality: There are a multitude of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends.
An external inspection definitely can't provide all of the data needed.
Myth: Considering that 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: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that ordered the appraisal.
However, consumers have to be provided with a copy of the report upon written request, due to the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their report so long as it meets the necessities of their lending company.
Reality: Only when consumers check out a copy of their appraisal can they ensure 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 an incredible amount of information stored in an appraisal report 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 region.
Myth: The only reason someone would hire an appraiser is if a home needs its value assessed in a lender-based sales transaction.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a series of different services including - but certainly 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 job of the appraiser is to conclude an opinion of value in the appraisal process and through creating the report.
The job of a home inspector is to determine the condition of the home and its major components, then create a report on these inspection.
