Myth: Assessed value will always be the same as market value.
Reality: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always.
Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an prolonged period of time.
Myth: The buyer or the seller will have impact in the cost of the home depending upon for whom the appraiser is working.
Reality: The value of the home does not affect the payment of the appraiser; because of this, the appraiser has no vested interest in the opinion of value of the property. Obviously, he will complete his business with impartiality and independence regardless of for whom the appraisal is created.
Myth: The replacement value of the home is always in line with the market value.
Reality: Without any pressure from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular house.
Replacement value is the dollar amount required to rebuild a property in-kind.
Myth: Certain formulae, such as the price per square foot, are the methods appraisers use to come to the value of a house.
Reality: An appraisal report is an assertion of data based on the home's size, location, proximity to specific facilities, the condition of the house and the values of recent comparable sales. You can rely on Merit Appraisal Service's staff to be honest in assessing this information.
Myth: In a powerful economy - when the sales prices of homes in a given region are found to be rising by a particular percentage - the values of individual houses in the proximity can be expected to increase by that same percentage.
Reality: All increase of value is on an individual basis, concluded by information on relevant considerations and the data of comparable properties.
It doesn't matter if the economy is on the rise or declining.
Myth: You can usually tell 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 - location, condition, improvements, amenities, and market trends.
There's no real way to get all of this information from simply looking at the home from the outside.
Myth: Since you're the one funding for the appraisal when applying for the loan to buy or refinance your house, you own the ordered appraisal report.
Reality: Unless a lending agency releases its vestment in the document, it is legally owned by the lending agency that purchased the appraisal.
By the Equal Credit Opportunity Act, any home buyer asking for a copy of the document must be given one by their lending company.
Myth: It doesn't concern consumers what's in the appraisal report so long as it meets the necessities of their lender.
Reality: It is a very good idea for home buyers to check over a copy of their appraisal report so that they can double-check the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
An appraisal can serve as a record for the future, containing an exorbitant amount of data - including, but certainly 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 vicinity.
Myth: Appraisals are ordered only to assess home values in house sales involving mortgage-lending deals.
Reality: Hiring an appraiser can fulfill a variety of requirements 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 property inspection serves the same purpose as an appraisal.
Reality: A home inspection has a completely different purpose than an appraisal.
An appraiser decides upon an opinion of value in the appraisal process and resulting report.
A home inspector analyzes the condition of the home and its major components and reports these findings.
