Myth: Market value must be similar to the assessed value of the property.
Reality: It is possible that California, like most states, supports the idea that the assessed value equates to the market value; however, this certainly varies based on state-to-state.
Often when interior remodeling has occurred and the assessor is not aware of the improvement or properties in the Huntington Beach have not been reassessed for quite some time, it may vary widely.
Myth: The opinion of value of a home will differ 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 appraisal, therefore he will conduct his work with impartiality and independence, despite of for whom the appraisal is created.
Myth: Market value will mirror replacement cost.
Reality: Market value is derived from what a willing buyer would likely pay a willing seller for a specific house, with neither being under undue influence to buy or sell.
If the home were reconstructed, the dollar amount required to do so would make up the replacement cost.
Myth: There are certain methods that real estate appraisers use to determine the value of a house, like the price per square foot.
Reality: An appraisal is an amalgamation of information concluded from the home's size, location, proximity to undesirable facilities, the condition of the house and the values of recent comparable sales. You can count on Associate Appraisers of America's staff to be ethical in assessing this data.
Myth: When the economy is strong and the sales prices of houses are reported to be increasing by a certain percentage, the other properties in the area can be expected to appreciate based on that same percentage.
Reality: The appreciation of a certain home must be determined on a case-by-case basis, factoring in information on comparable properties and other relevant specifications within the home itself.
This is true in excellent economic times as well as bad.
Myth: You can generally see what a property is worth simply by looking at the outside.
Reality: Property value is determined by a multitude of factors, including area, condition, improvements, amenities, and market trends.
As you can see, none of these factors can be found just by viewing the home from the exterior.
Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance real estate, they legally own their appraisal report.
Reality: Legally, the document is owned by the lending company unless the lender relinquishes their interest in the appraisal.
However, home buyers have to be given a copy of the report upon written request, because of the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their appraisal so long as it meets the requirements of their lending company.
Reality: Only when home buyers look over 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.
There is a wealth of data contained in an appraisal 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 vicinity.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a home during a sales transaction involving a lender.
Reality: Appraisers can have many varied 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: There's no reason to get an appraisal if you get a home inspection.
Reality: A home inspection serves a completely different purpose than an appraisal report.
The job of the appraiser is to find an opinion of value in the appraisal process and through creating the report.
The job of a home inspector is to determine the condition of the home and its main components, then create a report on their findings.
