Myth: The value that is ascertained by the appraiser is required to be the same as the market value.
Reality: It is possible that North Carolina, like most states, supports the suggestion that the assessed value equals the market value; however, this is not always true. There are times when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the neighborhood have not been reassessed for quite some time, it may vary widely.
Myth: Depending on if the appraisal is written for the buyer or the seller, the value of the home will vary.
Reality: There is no real interest on the part of the appraiser in the result of the appraisal, therefore he will conduct his work with impartiality and independence, no matter of for whom the appraisal is conducted.
Myth: Any time market value is calculated, it should equal the replacement cost of the home.
Reality: Market value is derived from what a willing buyer would likely pay a willing seller for a particular home, with neither being under undue influence to buy or sell. If the home were rebuilt, the dollar amount required to do so would set the replacement cost.
Myth: Specific methods, such as the price per square foot, are what appraisers use to determine the value of a house.
Reality: An appraisal report is an amalgamation of information based on the property's size, location, proximity to certain facilities, the condition of the home and the values of recent comparable sales. You can count on The Affordable Appraisal Store L.L.C.'s staff to be honest in assessing this data.
Myth: As houses appreciate by a specific percentage - in a strong economy - the houses around the appreciating properties are figured to appreciate by the same amount.
Reality: All appreciation of value is on an individual basis, concluded by information on relevant conditions and the data of comparable homes. This is true in robust economic times as well as poor.
Myth: Just examining 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 the value of a home; these factors include area, condition, improvements, amenities, and market trends. An outside-only inspection certainly can't provide all of the information needed.
Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance their home, they legally own their appraisal report.
Reality: The appraisal is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the appraisal. Due the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be given it by their lender.
Myth: There's no need for consumers to even care about what the appraisal report contains so long as their lender is satisfied.
Reality: It is very important for home buyers to go through a copy of their appraisal so that they can double-check the accuracy of the report, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, containing an incredible amount of data - 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 order an appraisal unless you are trying to get an assessment of the value of a home during a sales transaction involving a lending institution.
Reality: Based upon their qualifications and designations, appraisers can and may provide a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: Appraisal reports have almost nothing in common with a home inspection. An appraiser finds an opinion of value in the appraisal process and resulting report. House inspectors will write a report that will explain the condition of the property and its major components and possible damage.
