Myth: Assessed value should equate market value.
Reality: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always.
Examples include when interior remodeling has happened and the assessor has not seen the improvements, or when properties in the vicinity have not been reassessed for an prolonged time.
Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the opinion of value of the property will vary.
Reality: There is no personal interest on the part of the appraiser in the outcome of the appraisal report, therefore he will conduct his work with impartiality and independence, no matter of for whom the appraisal is ordered.
Myth: The replacement cost of the house will be on par with the market value.
Reality: The way market value is derived is based on what a home buyer would likely pay a willing seller for a property without being under duress from any outside group to purchase or sell.
Replacement cost is the dollar amount necessary to rebuild a property in-kind.
Myth: There are specific ways that real estate appraisers use to determine the value of a home, like the price per square foot.
Reality: An appraisal is an assertion of information based on the property's size, location, proximity to specific facilities, the condition of the house and the values of recent comparable sales. You can rely on Di Cicco & Associates's appraisers to be ethical in assessing this data.
Myth: As properties increase in value by a specific percentage - in a strong economic state - the properties within the same neighborhood are figured to increase by the same amount.
Reality: All increase of value is on a one-on-one basis, determined by information on relevant elements and the data of comparable houses.
It doesn't matter if the economy is doing well or declining.
Myth: The house's outside is determinate of the actual value of the property; there is no need to do an interior appraisal.
Reality: To determine a genuine value beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and market trends.
As you can see, none of these factors can be derived simply by looking at the house from the exterior.
Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance real estate, they own their appraisal report.
Reality: Legally, the appraisal report is owned by the lending company unless the lender releases their interest in the appraisal.
Consumers have to be supplied with a copy of the report upon written request because of the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even worry about what the report contains so long as their lender is fine with the contents therein.
Reality: Only when consumers 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.
Also, the report makes an invaluable record for future reference, filled with useful and often-revealing 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: Appraisals are ordered only to estimate building values in property sales involving mortgage-lending deals.
Reality: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a variety 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: Appraisal reports are definitely not the same as a home inspection.
The function of an appraisal report is to conclude upon an opinion of market value during the appraisal process and the completion of the report.
A home inspector assesses the condition of the property and its major components and reports these findings.