Myth: The value that is ascertained by the appraiser is required to be equivalent to the market value.
Reality: It could be that California, like most states, supports the idea that the assessed value equates to the market value; however, this certainly varies based on state-to-state.
Interior reconstruction that the assessor has not investigated and a dearth of reassessment on nearby homes are perfect examples of why this occurs.
Myth: Depending on if the appraisal is produced 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 result of the analysis, therefore he will conduct his work with impartiality and independence, no matter of for whom the appraisal is ordered.
Myth: Market value will equal replacement cost.
Reality: The way market value is derived is based on what a buyer would likely pay a willing seller for a home without being under duress from any outside party to buy or sell.
The dollar amount demanded to rebuild a house is what forms the replacement cost.
Myth: There are specific ways that real estate appraisers use to show the opinion of value of a home, like the price per square foot.
Reality: An appraisal is a collection of data concluded from the house's size, location, proximity to specific facilities, the condition of the home and the values of recent comparable sales. You can rely on WalshStreet Appraisals's appraisers to be honest in assessing this information.
Myth: As houses increase in value by a specific percentage - in a robust economic state - the homes nearby are figured to increase by the same amount.
Reality: Any value an appraiser reports concerning a specific home is always personalized, based on certain factors found from the information of comparable houses and other specifications within the house itself.
It doesn't matter if the economy is on the rise or declining.
Myth: You can commonly tell what a property is worth simply by looking at the outside.
Reality: To determine a definite value beyond all doubt, an appraiser must inspect the property on a variety of factors based on location, condition, improvements, amenities, and market trends.
There's no possible way to get all of this information from just looking at the home from the outside.
Myth: Considering that the consumer is the party who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Reality: The appraisal report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal.
Home buyers have to be provided with a copy of the report through request because of the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their document so long as it exceeds the requirements of their lending group.
Reality: Only when home buyers check out a copy of their appraisal can they verify 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 a great deal of information stored in a report that should 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 proximity.
Myth: The only reason someone would hire an appraiser is if a home needs its value assessed in a lender-based sales transaction.
Reality: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is no different than a home inspection.
Reality: A home inspection report has a completely different purpose than an appraisal report.
The appraiser concludes on an opinion of value in the appraisal process and resulting appraisal.
A home inspector assesses the condition of the house and its major components and reports these findings.