Myth: Market value has to be similar to the assessed value of the property.
Reality: While most states support the suggestion that assessed value is the same as estimated market value, this generally is not the case.
Often when interior remodeling has been done and the assessor is not aware of the improvement or properties in the Metairie have not been reassessed for quite a while, it may vary widely.
Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the value of the home will vary.
Reality: The appraiser has no personal interest in the result of the report and should complete his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement value of the home should be on par with the market value.
Reality: Without any pressure from any different parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular house.
Replacement cost is the dollar amount required to rebuild a property in-kind.
Myth: There are specific ways that appraisers use to find the opinion of value of a home, like the price per square foot.
Reality: There are many different formulae that an appraiser will use to make an in-depth analysis of every factor pertaining to the house, such as the size, location, condition, how close it is to certain facilities and the sales prices of recently sold comparable houses.
Myth: As houses increase in value by a certain percentage - in a strong economy - the homes around the appreciating properties are figured to increase by the same amount.
Reality: Any value an appraiser derives concerning a certain home is always individualized, based on certain factors concluded from the data of comparable homes and other specifications within the house itself.
It doesn't matter if the economy is on the rise or declining.
Myth: Just seeing what the property looks like on the outside gives an idea of its value.
Reality: Property value is determined by a multitude of factors, including area, condition, improvements, amenities, and market trends.
There's no possible way to get all of this data from simply examining the property from the outside.
Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to buy or refinance your house, you own the provided appraisal.
Reality: Unless a lender releases its vestment in the document, it is legally owned by the lending company that purchased the appraisal.
Due the Equal Credit Opportunity Act, any consumer requesting a copy of the document must be provided with it by their lending company.
Myth: There's no need for home buyers to even care about what the appraisal contains so long as their lending institution is fine with the contents therein.
Reality: It is a very good idea for home buyers to go through a copy of their appraisal report so that they can double-check the accuracy of the report, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
An report can double as a record for the future, since it contains an exorbitant amount of information - 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 area.
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 company.
Reality: Based upon their qualifications and designations, appraisers can and may perform a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You shouldn't need to get an appraisal if you get a home inspection.
Reality: An appraisal report does not fulfill the same purpose as an inspection.
The task of the appraiser is to conclude an opinion of value in the appraisal process and through creating the report.
A home inspector determines the condition of the property and its major components and reports their findings.
