Myth: Market value must be equivocal to the assessed value of the property.
Reality: It is probable that California, like most states, supports the common myth that the assessed value equates to the market value; however, this is not often the case.
Generally when interior remodeling has been done and the assessor is unaware of the improvement or other homes in the Los Angeles have not been reassessed for years or more, it may vary widely.
Myth: The value of a property will change depending upon whether the appraisal is conducted for the buyer or the seller.
Reality: The appraised value of the property does not affect the pay of the appraiser; due to this, the appraiser has no preconceived interest in the value of the home. Obviously, he will provide business with impartiality and independence regardless of for whom the appraisal is created.
Myth: Any time market value is calculated, it should match the replacement cost of the house.
Reality: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a particular property, with neither being under undue influence to buy or sell.
The dollar amount needed to reconstruct a house is what shows the replacement cost.
Myth: Specific methods, such as the price per square foot, are the ways appraisers use to come to the value of a house.
Reality: An appraisal report is a collection of information based on the home's size, location, proximity to some facilities, the condition of the property and the values of recent comparable sales. You can count on WalshStreet Appraisals's staff to be honest in assessing this information.
Myth: In a strong economy - when the values of houses in a given county are reported to be rising by a certain percentage - the values of individual properties in the vicinity can be expected to increase by that same percentage.
Reality: Any value an appraiser derives in regards to a particular property is always personalized, based on certain factors found from the data of comparable properties and other considerations within the home itself.
It doesn't matter if the economy is on the rise or declining.
Myth: You can generally see what a house is worth simply by looking at the exterior.
Reality: Home value is determined by a multitude of factors, including location, condition, improvements, amenities, and market trends.
There's no possible way to get all of this data from simply examining the home from the exterior.
Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance real estate, they own their appraisal report.
Reality: Legally, the appraisal is owned by the lending company unless the lender relinquishes their interest in the report.
By the Equal Credit Opportunity Act, any home buyer requesting a copy of the report must be given it by their lending agency.
Myth: There's no need for consumers to even concern themselves with what the appraisal report contains so long as their lender is fine with the contents therein.
Reality: Only when consumers check out a copy of their appraisal can they double-check its accuracy and know if they should ask questions. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the report makes an excellent record for future reference, containing useful and often-revealing data - 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 area.
Myth: Appraisers are hired only to assess home values in house sales involving mortgage-lending transactions.
Reality: Appraisers can have many different qualifications and designations which allow them to perform 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: An appraisal is no different than a home inspection.
Reality: A home inspection has a completely different purpose than an appraisal.
The appraiser forms an opinion of value in the appraisal process and resulting appraisal report.
House inspectors will create a report that will express the condition of the home and its major components and possible damage.