Myth: The value that is assessed by the appraiser must be equivalent to the market value.
Reality: While most states support the concept that assessed value approximates estimated market value, this usually is not the case.
At times when interior remodeling has occurred and the assessor is unaware of the improvement or other homes in the Flagstaff have not been reassessed for quite some time, it may vary widely.
Myth: The buyer or the seller sometimes may have impact in the value of the house depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the outcome of the appraisal and should render his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement cost of the house is always in line with the market value.
Reality: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific home.
Replacement value is the dollar amount necessary to reconstruct a house in-kind.
Myth: Specific methods, like the price per square foot, are the ways appraisers use to come to the value of a property.
Reality: An appraisal report is an assertion of information based on the property's size, location, proximity to certain facilities, the condition of the house and the values of recent comparable sales. You can rely on Gant Real Estate Appraisal Service's appraisers to be honest in assessing this information.
Myth: When the economy is robust and the sales prices of homes are found to be appreciating by a certain percentage, the other properties in the vicinity can be expected to appreciate based on that same percentage.
Reality: An increase in value of a certain property has to be determined on a case-by-case basis, factoring in information on comparable houses and other relevant elements.
It doesn't matter if the economy is on the rise or declining.
Myth: You can generally find what a house is worth simply by looking at the exterior.
Reality: There are a number of different variables that show property value; these factors include location, condition, improvements, amenities, and market trends.
There's no possible way to get all of this data from simply looking at the home from the exterior.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for the loan to buy or refinance your home, you own the provided appraisal.
Reality: Unless a lender releases its interest in the report, it is legally owned by the lending agency that purchased the appraisal.
However, consumers have to be given a copy of the report upon written request, because of the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the report so long as it satisfies the requirements of their lender.
Reality: Only when consumers look through a copy of their appraisal can they double-check its accuracy and know if they should ask questions. 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, since it contains a great deal of information - including, but 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 proximity.
Myth: Appraisals are ordered only to estimate home values in property sales involving mortgage-lending deals.
Reality: Appraisers can have many varied qualifications and designations which allow them to perform a variety of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal is no different than a home inspection.
Reality: An appraisal report does not fulfill the same purpose as an inspection.
The appraiser forms an opinion of value in the appraisal process and resulting report.
House inspectors will compose a report that will determine the condition of the home and its major components and possible damage.
