Myth: Market value will be similar to the assessed value of the property.
Reality: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always.
Often when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the Frankfort have not been reassessed for a good length of time, it may vary widely.
Myth: Depending on if the appraisal is done for the buyer or the seller, the cost of the property will vary.
Reality: The price of the home does not affect the pay of the appraiser; because of this, the appraiser has no personal interest in the price of the property. This means that he will render job with impartiality and objectivity regardless of for whom the appraisal is produced.
Myth: The replacement value of the house will be on par with the market value.
Reality: The way market value is derived is based on what a home buyer would likely pay a willing seller for a house without being under influence from any external group to buy or sell.
The dollar amount demanded to rebuild a property is what forms the replacement cost.
Myth: Certain methods, like the price per square foot, are what appraisers use to determine the value of a home.
Reality: An appraisal is an assertion of data based on the home's size, location, proximity to certain facilities, the condition of the property and the values of recent comparable sales. You can rely on Browning Appraisal's appraisers to be honest in assessing this data.
Myth: When the economy is robust and the sales prices of houses are reported to be increasing by a certain percentage, the other properties in the area can be expected to rise based on that same percentage.
Reality: The appreciation of a specific house has to be determined on an individualized basis, factoring in information on comparable houses and other relevant considerations.
It doesn't matter if the economy is doing well or declining.
Myth: Just examining what the property looks like on the outside gives an excellent idea of its value.
Reality: There are a multitude of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends.
There's no real way to get all of this data from simply looking at the home from the exterior.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their house, they legally own their appraisal report.
Reality: Legally, the document is owned by the lending agency unless the lender releases their interest in the appraisal.
Consumers must be provided with a version of the appraisal report upon written request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their document so long as it satisfies the needs of their lending company.
Reality: Only when home buyers read a copy of their appraisal report can they verify 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 information contained in an appraisal that can be useful to the consumer 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a property during a sales transaction involving a lending agency.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a series 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.
Reality: An appraisal does not serve the same purpose as an inspection.
The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report.
A home inspector determines the condition of the building and its main components and reports their findings.
