Myth: Market value must be equivocal to the assessed value of the property.
Reality: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always.
There are times when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the area have not been reassessed for years or more, it may vary widely.
Myth: The buyer or the seller may have an influence in the cost of the home depending upon for whom the appraiser is working.
Reality: The cost of the property does not affect the pay of the appraiser; due to this, the appraiser has no preconceived interest in the price of the house. This means that he will complete his services with impartiality and objectivity regardless of for whom the appraisal is conducted.
Myth: The replacement value of the house should be on par with the market value.
Reality: Without any pressure from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular home.
If the property were rebuilt, the dollar amount required to do so would make up the replacement cost.
Myth: Specific methods, like the price per square foot of the property, are the ways appraisers use to determine the value of a house.
Reality: An appraisal report is an assertion of data concluded from the property's size, location, proximity to certain facilities, the condition of the home and the values of recent comparable sales. You can depend on Carvalho & Associates Appraisal Corp's staff to be forthright in assessing this information.
Myth: When the economy is on the rise and the sales prices of houses are reported to be increasing by a certain percentage, the other houses in the neighborhood can be expected to rise based on that same percentage.
Reality: An increase in value of a specific house is always concluded on an individualized basis, factoring in information on comparable houses and other relevant specifications within the house itself.
It doesn't matter if the economy is on the rise or declining.
Myth: Just looking at what the home looks like on its exterior gives an idea of its value.
Reality: Property value is determined by a multitude of factors, including - but not limited to - location, condition, improvements, amenities, and market trends.
There's no possible way to get all of this data from simply looking at the house from the outside.
Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance their home, they own their appraisal report.
Reality: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal.
However, home buyers have to be given a copy of the document upon written request, under the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even concern themselves with what the appraisal contains so long as their lending company is satisfied.
Reality: Only when home buyers look at a copy of their appraisal report 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.
An report can serve as a record for the future, as it contains a great deal of 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 proximity.
Myth: Appraisals are ordered only to estimate building values in house sales involving mortgage-lending deals.
Reality: Depending upon their qualifications and designations, appraisers can and do provide a series of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: A home inspection report serves a completely different purpose than an appraisal report.
The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through writing the report.
The purpose of a home inspector is to assess the condition of the property and its main components, then produce a report on their inspection.
