Myth: The value that is assessed by the appraiser must be exactly the same as the market value.
Reality: While most states back the suggestion that assessed value is equal to estimated market value, this often is not the case.
Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when homes in the vicinity have not been reassessed for an prolonged time.
Myth: Depending on whether the appraisal is produced for the buyer or the seller, the cost of the home will vary.
Reality: The value of the house does not affect the payment of the appraiser; because of this, the appraiser has no pressured interest in the value of the house. What this means is he will complete his business with impartiality and objectivity regardless of for whom the appraisal is provided.
Myth: Any time market value is calculated, it should be the same as the replacement cost of the property.
Reality: Market value is acquired by what a willing buyer would likely pay a willing seller for a specific house, with neither being under undue influence to buy or sell.
Replacement cost is the dollar amount needed to rebuild a property in-kind.
Myth: Appraisers use a formula, such as a specific price per square foot, to conclude the value of a house.
Reality: An appraisal is a collection of information concluded from the home's size, location, proximity to specific facilities, the condition of the home and the values of recent comparable sales. You can rely on ENH Appraisal LLC's appraisers to be honest in assessing this information.
Myth: As properties appreciate by a certain percentage - in a strong economic state - the houses in proximity are expected to appreciate by the same amount.
Reality: The appreciation of a certain house is always concluded on a case-by-case basis, factoring in data on comparable houses and other relevant specifications within the house itself.
It makes no difference whether the economy is good or poor.
Myth: You can commonly find what a house is worth simply by looking at the outside.
Reality: House value is concluded by a multitude of variables, including - but not limited to - area, condition, improvements, amenities, and market trends.
There's no real way to get all of this data from simply looking at the property from the outside.
Myth: Since the consumer is the party who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Reality: The report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal report.
Under the Equal Credit Opportunity Act, any home buyer asking for a copy of the report must be given it by their lending agency.
Myth: There's no reason for consumers to even worry about what the appraisal contains so long as their lending agency is fine with the contents therein.
Reality: A consumer should definitely look through their report; there will probably be some questions or some worries about the accuracy of the report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal makes an excellent record for future reference, filled with helpful and often-revealing information - including 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: Appraisals are ordered only to estimate home values in home sales involving mortgage-lending transactions.
Reality: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: An appraisal report does not serve the same purpose as an inspection report.
The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal report.
The purpose of a home inspector is to assess the condition of the property and its major components, then write a report on their findings.