Myth: The value that is assessed by the appraiser should be exactly the same as the market value.
Reality: While most states uphold the idea that assessed value approximates estimated market value, this commonly is not the case.
Interior remodeling that the assessor has not investigated and a lack of reassessment on nearby homes are perfect examples of why there might be a differential in price.
Myth: The buyer or the seller will have an influence in the cost of the home depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the result of the appraisal report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Any time market value is established, it should equal the replacement cost of the house.
Reality: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific house.
Replacement value is the dollar amount required to reconstruct a home in-kind.
Myth: There are specific methods that real estate appraisers use to show the value of a home, like the price per square foot.
Reality: An appraisal is an amalgamation of data based on the house's size, location, proximity to undesirable facilities, the condition of the house and the values of recent comparable sales. You can depend on CMH Appraisals llc's appraisers to be honest in assessing this data.
Myth: When the economy is doing well and the sales prices of houses are reported to be rising by a certain percentage, the other houses in the neighborhood can be expected to rise based on that same percentage.
Reality: All increase of value is on a one-on-one basis, found by data on relevant considerations and the data of comparable properties.
This is true in excellent economic times as well as bad.
Myth: The home's exterior is determinate of the expected price of the property; there is no need to do an interior inspection.
Reality: There are a number of different factors that determine property value; these factors include location, condition, improvements, amenities, and market trends.
An exterior inspection certainly can't provide all of the information needed.
Myth: Because the consumer is the party who provides the capital to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Reality: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal.
By the Equal Credit Opportunity Act, any consumer requesting a copy of the document must be given one by their lending agency.
Myth: It doesn't mean anything to consumers what's in the report so long as it satisfies the requirements of their lending agency.
Reality: It is very important for home buyers to look at a copy of their appraisal report so that they can double-check the accuracy of the report, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a great deal of data contained in an appraisal 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 area.
Myth: The only reason someone would order an appraisal is if a property needs its value estimated in a lender-based sales transaction.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: Appraisal reports are definitely not the same as a home inspection.
The task of the appraiser is to come to 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 home and its main components, then produce a report on these findings.