Myth: Market value will always be similar to the assessed value of the property.
Reality: While most states back the concept that assessed value is equal to estimated market value, this commonly is not the case.
Usually when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the neighborhood have not been reassessed for quite some time, it may vary widely.
Myth: Depending on whether the appraisal is provided for the buyer or the seller, the cost of the property will vary.
Reality: The appraiser has no personal interest in the outcome of the appraisal and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the property should be on par with the market value.
Reality: The way market value is found is based on what a home buyer would likely pay a willing seller for a property without being under pressure from any outside group to purchase or sell.
If the house were rebuilt, the dollar amount required to do so would be the replacement cost.
Myth: There are specific ways that appraisers use to show the value of a home, like the price per square foot.
Reality: An appraisal is an amalgamation of information concluded from the house's size, location, proximity to certain facilities, the condition of the property and the values of recent comparable sales. You can rely on Belanger Appraisals, Inc's appraisers to be forthright in assessing this data.
Myth: As homes increase in value by a specific percentage - in a strong economic state - the properties within the same neighborhood are figured to appreciate by the same amount.
Reality: The appreciation of a specific house has to be concluded on an individualized basis, factoring in information on comparable houses and other relevant elements.
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 home; there is no need to do an interior appraisal.
Reality: There are a number of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends.
An outside-only inspection certainly can't provide all of the data required.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for the loan to purchase or refinance your house, you own the ordered appraisal.
Reality: Legally, the document is owned by the lending company unless the lender relinquishes their interest in the document.
Under the Equal Credit Opportunity Act, any consumer demanding a copy of the report must be provided with one by their lender.
Myth: There's no point for home buyers to even worry about what the report contains so long as their lending company is satisfied.
Reality: It is almost imperative for consumers to peruse a copy of their appraisal report so that they can double-check the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a great deal of data stored in a report that will probably 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 proximity.
Myth: The only reason someone would order an appraisal is if a house needs its value assessed in a lender sales transaction.
Reality: Ordering an appraisal can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: Appraisal reports are nothing like a home inspection report.
The purpose of the appraiser is to find an opinion of value in the appraisal process and through creating the report.
House inspectors will compose a report that will express the condition of the property and its major components and possible damage.