Myth: Assessed value should be the same as market value.
Reality: While most states uphold the idea that assessed value is equal to estimated market value, this usually is not the case.
Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an prolonged time.
Myth: The buyer or the seller often will have leverage in the value of the house depending upon for whom the appraiser is working.
Reality: There is no vested 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 written.
Myth: Market value should mirror replacement cost.
Reality: Market value is based on what a willing buyer would likely pay a willing seller for a certain property, with neither being under duress to buy or sell.
If the home were rebuilt, the dollar amount required to do so would set the replacement cost.
Myth: Certain methods, like the price per square foot of the property, are what appraisers use to ascertain the value of a house.
Reality: An appraisal is an amalgamation of information based on the house's size, location, proximity to certain facilities, the condition of the house and the values of recent comparable sales. You can rely on Sinnen-Green & Associates's staff to be forthright in assessing this data.
Myth: As homes appreciate by a certain percentage - in a strong economy - the properties within the same neighborhood are expected to appreciate by the same amount.
Reality: All appreciation of value is on a one-on-one basis, concluded by information on relevant considerations and the data of comparable houses.
This is true in good economic times as well as bad.
Myth: Just seeing what the home looks like on the outside gives an excellent idea of its value.
Reality: Property value is determined by a number of variables, including location, condition, improvements, amenities, and market trends.
As you can see, none of these factors can be found just by examining the property from the outside.
Myth: Since you're the one paying for the appraisal report when applying for your loan to buy or refinance your home, you own the produced appraisal.
Reality: Unless a lending agency releases its interest in the document, it is legally owned by the lending company that ordered the appraisal.
Home buyers have to be supplied with a copy of the report upon written request due to 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 satisfied.
Reality: It is almost imperative for home buyers to read a copy of their report so that they can verify the accuracy of the document, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
An report can double as a record for the future, containing an exorbitant amount of data - including, but certainly 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: The only reason someone would hire an appraiser is if a home 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 series of different services including - but certainly 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.
Reality: Appraisal reports are completely different than a home inspection report.
The appraiser finds an opinion of value in the appraisal process and resulting document.
A home inspector assesses the condition of the house and its major components and reports these findings.
