Myth: Assessed value will always be similar to market value.
Reality: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always.
Generally when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the Woodland Hills have not been reassessed for quite some time, it may vary widely.
Myth: The buyer or the seller sometimes may have impact in the value of the property depending upon for whom the appraiser is working.
Reality: The cost of the home does not affect the pay of the appraiser; because of this, the appraiser has no vested interest in the opinion of value of the property. Obviously, he will render task with impartiality and independence regardless of for whom the appraisal is produced.
Myth: Any time market value is established, it should be the same as the replacement cost of the property.
Reality: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a certain house, with neither being under undue influence to buy or sell.
The dollar amount required to reconstruct a property is what constitutes the replacement cost.
Myth: There are certain methods that real estate appraisers use to show the opinion of value of a home, such as the price per square foot.
Reality: An appraisal report is an amalgamation of information concluded from the home's size, location, proximity to certain facilities, the condition of the property and the values of recent comparable sales. You can depend on All City Appraisal's appraisers to be ethical in assessing this information.
Myth: In a robust economy - when the sales prices of houses in a given area are reported to be appreciating by a particular percentage - the values of individual homes in the proximity can be expected to appreciate by that same percentage.
Reality: Any value an appraiser reports concerning a certain house is always individualized, based on certain factors derived from the information of comparable houses and other considerations within the home itself.
It doesn't matter if the economy is doing well or declining.
Myth: Just looking at what the home looks like on its exterior gives an excellent idea of its value.
Reality: There are a multitude of different variables that determine property value; these factors include location, condition, improvements, amenities, and market trends.
There's no possible way to get all of this data from just examining the house from the exterior.
Myth: Since you're the one paying for the appraisal when applying for the loan to purchase or refinance your home, you own the ordered appraisal report.
Reality: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that ordered the appraisal.
Consumers have to be provided with a copy of the appraisal report upon written request due to the Equal Credit Opportunity Act.
Myth: Consumers need not be concerned with what is in their appraisal so long as it satisfies the needs of their lending institution.
Reality: A home buyer should definitely look through their document; there will probably be some questions or some worries with the accuracy of the inspection that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a wealth of data contained in a report that can be useful to the home buyer 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: Appraisals are ordered only to estimate building values in home sales involving mortgage-lending deals.
Reality: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A property inspection serves the same purpose as an appraisal.
Reality: Appraisal reports are definitely not the same as a home inspection.
The appraiser decides upon an opinion of value in the appraisal process and resulting report.
A home inspector assesses the condition of the house and its major components and reports their findings.