Myth: Market value will be equivocal to the assessed value of the property.
Reality: It is probable that, like most states, supports the idea that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule.
Examples include when interior remodeling has occurred and the assessor has not seen the improvements, or when houses in the area have not been reassessed for an extended period of time.
Myth: The appraised value of a property will be different depending upon if the appraisal is provided for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the appraisal report and should complete his job with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Any time market value is established, it should equal 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 pressure to buy or sell.
If the house were reconstructed, the dollar amount needed to do so would make up the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to conclude the value of a home.
Reality: An appraisal is a collection of data based on the property's size, location, proximity to specific facilities, the condition of the home and the values of recent comparable sales. You can depend on Frontline Appraisals, LLC's appraisers to be ethical in assessing this information.
Myth: In a strong economy - when the prices of homes in a given county are reported to be increasing by a certain percentage - the values of individual houses in the area can be expected to rise by that same percentage.
Reality: All appreciation of value is on an individual basis, found by information on relevant elements and the data of comparable properties.
It doesn't matter if the economy is doing well or declining.
Myth: You can generally find what a home is worth simply by looking at the exterior.
Reality: There are a multitude of different variables that conclude the value of a house; these factors include location, condition, improvements, amenities, and market trends.
An exterior inspection definitely can't provide all of the data needed.
Myth: Since you're the one paying for the appraisal report when applying for the loan to buy or refinance your house, you own the produced 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.
Under the Equal Credit Opportunity Act, any home buyer requesting a copy of the document must be given one by their lending agency.
Myth: It doesn't concern consumers what's in the report so long as it satisfies the needs of their lending company.
Reality: Only when home buyers examine a copy of their report can they ensure 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 appraisal can serve as a record for the future, containing an incredible amount 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 area.
Myth: Appraisers are hired only to assess home values in house sales involving mortgage-lending transactions.
Reality: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no need to get an appraisal if you have had a home inspection.
Reality: Appraisal reports are completely different than a home inspection.
The job of the appraiser is to find an opinion of value in the appraisal process and through writing the report.
A home inspector assesses the condition of the property and its major components and reports these findings.