Myth: The value that is ascertained by the appraiser must be the same as the market value.
Reality: While most states uphold the suggestion that assessed value equates estimated market value, this often is not the case.
Examples include when interior remodeling has occurred and the assessor has not seen the improvements, or when houses in the vicinity have not been reassessed for an prolonged period of time.
Myth: The buyer or the seller sometimes may have some pull in the value of the property depending upon for whom the appraiser is working.
Reality: There is no vested interest on the part of the appraiser in the outcome of the report, therefore he will conduct his work with impartiality and independence, no matter of for whom the appraisal is ordered.
Myth: The replacement value of the house should be on par with the market value.
Reality: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a specific house, with neither being under undue influence to buy or sell.
If the house were reconstructed, the dollar amount needed to do so would make up the replacement cost.
Myth: Certain methods, such as the price per square foot of the property, are the methods appraisers use to come to the value of a property.
Reality: An appraisal report is an assertion of data concluded from the home's size, location, proximity to certain facilities, the condition of the house and the values of recent comparable sales. You can count on G. Daniel Green & Associates, Inc.'s staff to be forthright in assessing this information.
Myth: As properties increase in value by a certain percentage - in a strong economy - the properties within the same neighborhood are figured to appreciate by the same amount.
Reality: All increase of value is on a case-by-case basis, concluded by data on relevant considerations and the data of comparable properties.
It doesn't matter if the economy is on the rise or declining.
Myth: You can commonly see what a property is worth simply by looking at the exterior.
Reality: To conclude a solid value beyond all doubt, an appraiser must assess 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 data from just viewing the house from the outside.
Myth: Because consumers fund the appraisal 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 "relinquishes its interest" in the report.
Home buyers have to be provided with a version of the report through request as per the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the report so long as it meets the needs of their lending agency.
Reality: Only when home buyers examine a copy of their appraisal 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.
There is a great deal of data contained in a report that can be useful to the consumer 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 vicinity.
Myth: Appraisers are hired only to assess real estate property values in home sales involving mortgage-lending deals.
Reality: Appraisers can have many different qualifications and designations which allow them to provide a variety 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: There's no need to get an appraisal if you have had a home inspection.
Reality: A home inspection report serves a completely different purpose than an appraisal.
The appraiser finds an opinion of value in the appraisal process and resulting document.
The purpose of a home inspector is to find the condition of the home and its major components, then create a report on these inspection.