Myth: The value that is ascertained by the appraiser should be the same as the market value.
Reality: It is possible that Georgia, like most states, supports the suggestion that the assessed value equates to the market value; however, this certainly varies based on state-to-state.
Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when properties in the vicinity have not been reassessed for an extended period of time.
Myth: The buyer or the seller can have some pull in the cost of the home depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the result of the appraisal report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement cost of the property will be on par with the market value.
Reality: Market value is derived from what a willing buyer would likely pay a willing seller for a particular property, with neither being under duress to buy or sell.
The dollar amount demanded to reconstruct a property is what forms the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to conclude the value of a property.
Reality: An appraisal report is an assertion of data based on the home's size, location, proximity to specific facilities, the condition of the home and the values of recent comparable sales. You can count on Integrity Appraisal Service LLC's appraisers to be honest 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 properties in the neighborhood can be expected to rise based on that same percentage.
Reality: An increase in value of a certain home is always concluded on an individualized basis, factoring in information on comparable properties and other relevant elements.
It makes no difference whether the economy is excellent or terrible.
Myth: Just looking at what the home looks like on its exterior gives an excellent idea of its value.
Reality: There are a number of different factors that conclude the value of a home; these factors include location, condition, improvements, amenities, and market trends.
An outside-only inspection certainly can't provide all of the information needed.
Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their house, they legally own their appraisal report.
Reality: Legally, the report is owned by the lending agency unless the lender releases their interest in the document.
Home buyers must be supplied with a version of the report through request because of the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the appraisal so long as it meets the needs of their lending company.
Reality: It is almost imperative for consumers to check over a copy of their appraisal so that they can double-check the accuracy of the report, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal makes a near perfect record for future reference, comprised of useful and often-revealing data - 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a home during a sales transaction involving a lender.
Reality: Ordering an appraisal can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no reason to get an appraisal if you get a home inspection.
Reality: A home inspection report serves a completely different purpose than an appraisal.
The job of the appraiser is to come to an opinion of value in the appraisal process and through producing the report.
The purpose of a home inspector is to determine the condition of the home and its major components, then write a report on their conclusions.
