Myth: Assessed value will always equate market value.
Reality: It is probable that Florida, like most states, validates the idea that the assessed value equals the market value; however, this is sometimes the exception rather than the rule.
Interior reconstruction that the assessor is not aware of and a lack of reassessment on nearby houses are prime examples of why the price can vary.
Myth: The appraised value of a property will be different depending upon whether the appraisal is conducted for the buyer or the seller.
Reality: There is no real interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, despite of for whom the appraisal is conducted.
Myth: Any time market value is calculated, it should equal the replacement cost of the house.
Reality: Market value is acquired by what a willing buyer would likely pay a willing seller for a certain house, with neither being under duress to buy or sell.
If the house were reconstructed, the dollar amount required to do so would form the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to arrive at the value of a property.
Reality: There are many numerous processes that an appraiser will use to make a detailed investigation of every factor pertaining to the property, such as the size, location, condition, how close it is to specific facilities and the sales prices of recently sold comparable homes.
Myth: When the economy is on the rise and the sales prices of houses are found to be appreciating by a certain percentage, the other homes in the vicinity can be expected to rise based on that same percentage.
Reality: Any value an appraiser derives concerning a specific property is always personalized, based on certain factors pulled from the information of comparable homes and other considerations within the property itself.
It makes no difference if the economy is robust or terrible.
Myth: The property's outside is determinate of the actual value of the home; there is no need to do an interior appraisal.
Reality: Home value is determined by a number of factors, including - but not limited to - area, condition, improvements, amenities, and market trends.
As you can see, none of these things can be derived just by examining the property from the outside.
Myth: Since you're the one funding for the appraisal report when applying for the loan to buy or refinance real estate, you own the provided appraisal report.
Reality: Unless a lender releases its vestment in the report, it is legally owned by the lending company that ordered the appraisal.
However, consumers must be provided with a copy of the document upon written request, through the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their appraisal so long as it satisfies the requirements of their lending company.
Reality: A home buyer should definitely read through their report; there may be some questions or some worries about the accuracy of the appraisal report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal makes an excellent record for future reference, comprised of helpful and often-revealing information - 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: The only reason someone would order an appraisal is if a house needs its value assessed in a lender-based sales transaction.
Reality: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You shouldn't need to get an appraisal if you have had a home inspection.
Reality: An appraisal report does not fulfill the same purpose as an inspection.
The point of an appraisal is to conclude upon an opinion of market value during the appraisal process and the production of the report.
A home inspector analyzes the condition of the house and its main components and reports their findings.
