Myth: Market value will be similar to the assessed value of the property.
Reality: It could be that Florida, like most states, supports the common myth that the assessed value equates to the market value; however, this is not always true.
There are times when interior remodeling has occurred and the assessor is has not investigated the improvement or properties in the area have not been reassessed for quite a while, it may vary widely.
Myth: The buyer or the seller can have impact in the cost of the home depending upon for whom the appraiser is working.
Reality: The price of the house does not affect the salary of the appraiser; due to this, the appraiser has no preconceived interest in the value of the property. This means that he will conduct services with impartiality and objectivity regardless of for whom the appraisal is created.
Myth: Any time market value is calculated, it should match the replacement cost of the home.
Reality: Without any influence from any different parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific house.
The dollar amount required to reconstruct a property is what constitutes the replacement cost.
Myth: Appraisers use a formula, such as a certain price per square foot, to come to the value of a property.
Reality: Appraisers make a detailed analysis of all factors pertaining to the value of a house, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes.
Myth: In a robust economy - when the sales prices of houses in a given area are found to be appreciating by a certain percentage - the values of individual properties in the proximity can be expected to rise by that same percentage.
Reality: Any value an appraiser reports in regards to a specific home is always individualized, based on certain factors derived from the information of comparable houses and other specifications within the property itself.
It makes no difference if the economy is robust or poor.
Myth: Just looking at what the house looks like on the outside gives a good idea of its value.
Reality: To determine a conclusive value beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and market trends.
An outside-only inspection definitely can't provide all of the information needed.
Myth: Considering that the consumer is the person who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Reality: Unless a lender releases its vestment in the document, it is legally owned by the lending company that ordered the appraisal.
Consumers have to be supplied with a copy of the appraisal report through request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their appraisal document so long as it satisfies the necessities of their lending company.
Reality: A consumer should definitely look through their appraisal report; there could be some questions or some worries about the accuracy of the inspection that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
An appraisal report can double as a record for the future, as 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: Appraisals are ordered only to assess real estate property values in home sales involving mortgage-lending deals.
Reality: Appraisers can have many different qualifications and designations which allow them to provide a variety of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
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 purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through writing the report.
House inspectors will produce a report that will express the condition of the home and its major components and possible damage.