Myth: Assessed value generally will be the same as market value.
Reality: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when homes in the area have not been reassessed for an prolonged time.
Myth: The value of a home will differ depending upon whether the appraisal is produced for the buyer or the seller.
Reality: The appraiser has no personal interest in the result of the report and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: The replacement value of the home will be on par with the market value.
Reality: The way market value is derived is based on what a buyer would likely pay a willing seller for a property without being under pressure from any external party to buy or sell. Replacement value is the dollar amount needed to reconstruct a home in-kind.
Myth: Specific formulae, 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 information based on the house's size, location, proximity to undesirable facilities, the condition of the property and the values of recent comparable sales. You can count on Williams Appraisal Service's staff to be professional in assessing this data.
Myth: When the economy is doing well and the sales prices of houses are found to be increasing by a certain percentage, the other homes in the proximity can be expected to rise based on that same percentage.
Reality: All increase of value is on a one-on-one basis, concluded by data on relevant conditions and the data of comparable homes. It makes no difference if the economy is good or on the decline.
Myth: You can usually find what a house is worth simply by looking at the exterior.
Reality: To find a conclusive value beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. As you can see, none of these things can be derived just by viewing the home from the outside.
Myth: Because the consumer is the party who puts up 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 report is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal. Consumers have to be supplied with a version of the report upon written request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their report so long as it meets the necessities of their lending group.
Reality: Only when consumers 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 data contained in a report that will probably 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 area.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a home during a sales transaction involving a lending company.
Reality: Based upon their qualifications and designations, appraisers can and will provide a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't have to get an appraisal if you get a home inspection.
Reality: A home inspection has a completely different purpose than an appraisal report. An appraiser finds an opinion of value in the appraisal process and resulting appraisal. House inspectors will compose a report that will show the condition of the home and its major components and possible damage.
