Myth: Assessed value should always equate market value.
Reality: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always.
Interior reconstruction that the assessor is not aware of and a dearth of reassessment on nearby properties are exact examples of why this occurs.
Myth: Depending on if the appraisal is ordered for the buyer or the seller, the opinion of value of the house will vary.
Reality: The appraiser has no vested interest in the outcome of the report and should complete his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Any time market value is established, it should equal the replacement cost of the property.
Reality: Market value is acquired by what a willing buyer would likely pay a willing seller for a particular home, with neither being under duress to buy or sell.
If the property were reconstructed, the dollar amount needed to do so would set the replacement cost.
Myth: There are specific methods that appraisers use to determine the opinion of value of a home, such as the price per square foot.
Reality: An appraisal is an assertion of information concluded from the house's size, location, proximity to specific facilities, the condition of the house and the values of recent comparable sales. You can depend on Twin City Appraisal Service's staff to be professional in assessing this information.
Myth: When the economy is doing well and the sales prices of homes are found to be increasing by a certain percentage, the other houses in the vicinity can be expected to appreciate based on that same percentage.
Reality: An increase in value of a certain house has to be determined on an individualized basis, factoring in information on comparable homes and other relevant considerations.
It makes no difference if the economy is good or poor.
Myth: Just looking at what the property looks like on its exterior gives an excellent idea of its value.
Reality: There are a number of different factors that determine property value; these factors include location, condition, improvements, amenities, and market trends.
Obviously, none of these factors can be found simply by inspecting the house from the outside.
Myth: Since you're the one coughing up the cash for the appraisal when applying for your loan to purchase or refinance your house, you own the produced appraisal report.
Reality: The appraisal is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the report.
Consumers must be provided with a version of the document upon written request due to the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even worry about what the appraisal report contains so long as their lending agency is fine with the contents therein.
Reality: It is almost imperative for consumers to read a copy of their appraisal report so that they can double-check the accuracy of the document, in case it's required 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 a great deal 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a house during a sales transaction involving a lending institution.
Reality: Appraisers can have many varied qualifications and designations which allow them to perform a series 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: You don't need to get an appraisal if you get a home inspection.
Reality: An appraisal does not fulfill the same purpose as an inspection report.
An appraiser forms an opinion of value in the appraisal process and resulting document.
A home inspector analyzes the condition of the house and its main components and reports these findings.
