Myth: The value that is ascertained by the appraiser will be exactly the same as the market value.
Reality: It is possible that North Carolina, like most states, supports the suggestion that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule.
Usually when interior remodeling has occurred and the assessor is not aware of the improvement or other homes in the area have not been reassessed for quite some time, it may vary widely.
Myth: The buyer or the seller can have some pull in the cost of the property depending upon for whom the appraiser is working.
Reality: The price of the home does not affect the payment of the appraiser; due to this, the appraiser has no vested interest in the opinion of value of the home. This means that he will conduct services with impartiality and independence regardless of for whom the appraisal is conducted.
Myth: Market value should mirror replacement cost.
Reality: The way market value is found is based on what a buyer would be willing to pay a willing seller for a property without being under pressure from any external group to purchase or sell.
The dollar amount demanded to rebuild a home is what shows the replacement cost.
Myth: There are specific ways that appraisers use to show the value of a property, like the price per square foot.
Reality: There are many different formulae that an appraiser will use to make a full investigation of every factor in consideration of the house, such as the size, location, condition, how close it is to specific facilities and the values of recently sold comparable properties.
Myth: When the economy is strong and the sales prices of homes are found to be increasing by a certain percentage, the other properties in the proximity can be expected to appreciate based on that same percentage.
Reality: Any value an appraiser derives in regards to a particular property is always individualized, based on certain factors derived from the information of comparable properties and other specifications within the property itself.
It makes no difference whether the economy is robust or terrible.
Myth: Just seeing what the home looks like on its exterior gives an excellent idea of its value.
Reality: To determine a concrete value beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and market trends.
There's no real way to get all of this information from just viewing the home from the outside.
Myth: Since you're the one paying for the appraisal when applying for the loan to purchase or refinance your home, you own the produced appraisal.
Reality: Legally, the appraisal is owned by the lending agency unless the lender relinquishes their interest in the document.
By the Equal Credit Opportunity Act, any home buyer requesting a copy of the appraisal report must be provided with it by their lending company.
Myth: It doesn't matter to consumers what's in the appraisal report so long as it satisfies the necessities of their lender.
Reality: Only when home buyers examine a copy of their appraisal 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 an incredible amount of data contained in an appraisal report that could be useful to the home buyer 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: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a home during a sales transaction involving a lending institution.
Reality: Appraisers can have many varied qualifications and designations which allow them to perform a variety 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 report is no different than a home inspection report.
Reality: A home inspection report serves a completely different purpose than an appraisal report.
The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report.
House inspectors will produce a report that will express the condition of the house and its major components and possible damage.
