Myth: Assessed value generally will equate market value.
Reality: While most states back the suggestion that assessed value equates estimated market value, this generally is not the case.
Generally when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the Tampa have not been reassessed for years or more, it may vary widely.
Myth: The buyer or the seller can have an influence in the value of the property depending upon for whom the appraiser is working.
Reality: There is no personal interest on the part of the appraiser in the outcome of the appraisal report, therefore he will complete his work with impartiality and independence, regardless of for whom the appraisal is written.
Myth: The replacement cost of the property is always in line with the market value.
Reality: Without any suggestion from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular property.
The dollar amount demanded to reconstruct a house is what constitutes the replacement cost.
Myth: Specific formulae, such as the price per square foot of the property, are the methods appraisers use to come to the value of a house.
Reality: There are many numerous processes that an appraiser will use to make a comprehensive investigation of every factor pertaining to the house, such as the size, location, condition, how close it is to specific facilities and the values of recently sold comparable houses.
Myth: As homes appreciate by a certain percentage - in a strong economy - the properties around the appreciating properties are figured to increase by the same amount.
Reality: Any value an appraiser reports in regards to a certain home is always personalized, based on certain factors derived from the information of comparable houses and other specifications within the property itself.
It doesn't matter if the economy is doing well or declining.
Myth: Just examining what the house looks like on the outside gives a good idea of its value.
Reality: To find a solid value beyond all doubt, an appraiser must examine the property on a variety of factors based on area, condition, improvements, amenities, and current market trends.
An outside-only inspection certainly can't provide all of the information needed.
Myth: Because consumers fund appraisals when applying for loans to buy or refinance their house, they legally own their appraisal.
Reality: The appraisal is, in fact, legally owned by the lender - unless the lender "releases its interest" in the appraisal.
Because of the Equal Credit Opportunity Act, any home buyer demanding a copy of the appraisal report must be provided with it by their lending agency.
Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the necessities of their lending agency.
Reality: A home buyer should definitely read through their appraisal; there will probably be some questions or some concerns about the accuracy of the appraisal report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal makes a valuable record for future reference, containing useful and often-revealing information - including, but not limited to, 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a house during a sales transaction involving a lending agency.
Reality: Appraisers can have many different qualifications and designations which allow them to provide a lot 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 house inspection serves the same purpose as an appraisal.
Reality: An appraisal does not fulfill the same purpose as an inspection report.
The reason behind an appraisal report is to arrive at an opinion of market value during the appraisal process and the production of the report.
A home inspector determines the condition of the house and its main components and reports these findings.
