Myth: The value that is ascertained by the appraiser should be equivalent to the market value.
Reality: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always.
Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an extended period.
Myth: The buyer or the seller sometimes may have an influence in the cost of the home depending upon for whom the appraiser is working.
Reality: The appraiser has no vested interest in the outcome of the report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value should mirror replacement cost.
Reality: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific home.
If the house were reconstructed, the dollar amount required to do so would form the replacement cost.
Myth: Specific formulae, like the price per square foot, are the ways appraisers use to come to the value of a property.
Reality: An appraisal is an assertion of data concluded from the house's size, location, proximity to undesirable facilities, the condition of the house and the values of recent comparable sales. You can rely on Albrecht Walz Appraisal Service, LLC's appraisers to be ethical in assessing this data.
Myth: As houses increase in value by a certain percentage - in a robust economy - the properties within the same neighborhood are expected to appreciate by the same amount.
Reality: All increase of value is on a one-on-one basis, determined by information on relevant conditions and the data of comparable homes.
It makes no difference if the economy is powerful or on the decline.
Myth: The house's outside is determinate of the actual value of the home; there is no need to do an interior appraisal.
Reality: To find an accurate value beyond all doubt, an appraiser must assess the home on a variety of factors based on area, condition, improvements, amenities, and current market trends.
Obviously, none of these variables can be derived just by inspecting the home from the outside.
Myth: Considering that the consumer is the one who provides the capital to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal is theirs.
Reality: Legally, the appraisal report is owned by the lending company unless the lender relinquishes their interest in the document.
However, home buyers must be supplied with a copy of the appraisal report upon written request, because of the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the report so long as it meets the needs of their lending company.
Reality: Only when consumers look at a copy of their report can they double-check 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 great deal of data stored in an appraisal report that could 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 region.
Myth: The only reason someone would order an appraisal is if a property needs its value estimated in a lender sales transaction.
Reality: Based upon their qualifications and designations, appraisers can and will provide a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no need to get an appraisal if you order a home inspection.
Reality: A home inspection report has a completely different purpose than an appraisal.
The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal.
A home inspector analyzes the condition of the house and its major components and reports these findings.
