Myth: The value that is assessed by the appraiser will be equivalent to the market value.
Reality: While most states back the idea that assessed value is the same as estimated market value, this often is not the case.
Sometimes when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the neighborhood have not been reassessed for years or more, it may vary widely.
Myth: The opinion of value of a house will be different depending upon whether the appraisal is provided for the buyer or the seller.
Reality: There is no real interest on the part of the appraiser in the result of the appraisal report, therefore he will complete his work with impartiality and independence, despite of for whom the appraisal is created.
Myth: The replacement cost of the home will be on par with the market value.
Reality: Market value is derived from what a willing buyer would be interested in paying a willing seller for a specific house, with neither being under duress to buy or sell.
If the house were rebuilt, the dollar amount needed to do so would make up the replacement cost.
Myth: Specific formulae, like the price per square foot, are the methods appraisers use to determine the value of a house.
Reality: An appraisal is an assertion of information concluded from the property's size, location, proximity to undesirable facilities, the condition of the property and the values of recent comparable sales. You can rely on Robert L Ripp, SRA's appraisers to be ethical in assessing this data.
Myth: As homes increase in value by a certain percentage - in a strong economic state - the properties nearby are expected to appreciate by the same amount.
Reality: The appreciation of a certain house is always determined on a case-by-case basis, factoring in information on comparable homes and other relevant elements.
It makes no difference whether the economy is powerful or terrible.
Myth: You can usually see what a property is worth simply by looking at the exterior.
Reality: There are a multitude of different factors that conclude the value of a house; these factors include location, condition, improvements, amenities, and market trends.
An outside-only inspection certainly can't provide all of the information needed.
Myth: Since you're the one paying for the appraisal report when applying for your loan to buy or refinance real estate, you own the provided appraisal report.
Reality: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending agency that ordered the appraisal.
Under the Equal Credit Opportunity Act, any home buyer requesting a copy of the appraisal report must be provided with one by their lending company.
Myth: Consumers need not worry about what is in their document so long as it meets the needs of their lending group.
Reality: Only when consumers read 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.
An report can serve as a record for the future, containing an incredible amount of 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 property needs its value assessed in a lender-based sales transaction.
Reality: Appraisers can have many different qualifications and designations which allow them to provide a variety of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal is no different than a home inspection report.
Reality: Appraisal reports are completely different than a home inspection.
The point of an appraisal report is to find an opinion of market value during the appraisal process and the completion of the appraisal.
House inspectors will produce a report that will express the condition of the property and its major components and possible damage.