Myth: Market value must be equivocal to the assessed value of the property.
Reality: While most states support the idea that assessed value equates estimated market value, this usually is not the case.
Interior remodeling that the assessor is not aware of and a dearth of reassessment on nearby properties are excellent examples of why this occurs.
Myth: The buyer or the seller may have an influence in the cost of the property depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the outcome of the appraisal report and should complete his job with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Any time market value is calculated, it should equal the replacement cost of the house.
Reality: The way market value is arrived at is based on what a buyer would be willing to pay a willing seller for a house without being under duress from any outside party to buy or sell.
The replacement cost is the dollar amount necessary to reconstruct a property in-kind.
Myth: Appraisers use a calculation, such as a specific price per square foot, to come to the value of a house.
Reality: An appraisal is an amalgamation of information concluded from the property's size, location, proximity to undesirable facilities, the condition of the house and the values of recent comparable sales. You can rely on Willamette Valley Appraisal Professionals's appraisers to be professional in assessing this data.
Myth: In a strong economy - when the prices of houses in a given region are found to be increasing by a particular percentage - the prices of individual homes in the proximity can be expected to rise by that same percentage.
Reality: An increase in value of a specific home has to be determined on a case-by-case basis, factoring in information on comparable homes and other relevant elements.
It makes no difference if the economy is powerful or terrible.
Myth: You can generally tell what a home is worth simply by looking at the exterior.
Reality: House value is concluded by a multitude of variables, including - but not limited to - area, condition, improvements, amenities, and market trends.
An external inspection definitely can't provide all of the data needed.
Myth: Since you're the one providing the money for the appraisal report when applying for your loan to buy or refinance your house, you own the provided appraisal report.
Reality: Legally, the report is owned by the lending company unless the lender releases their interest in the report.
However, consumers have to be supplied with a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even care about what the report contains so long as their lender is satisfied.
Reality: Only when home buyers read a copy of their appraisal 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.
Also, the appraisal report makes a valuable record for future reference, filled with helpful and often-revealing information - including, but 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 proximity.
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: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A house inspection serves the same purpose as an appraisal.
Reality: An appraisal report does not fulfill the same purpose as an inspection report.
The job of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report.
A home inspector analyzes the condition of the building and its main components and reports these findings.
