Myth: Assessed value generally will be equal to market value.
Reality: It is possible that Washington, like most states, supports the suggestion that the assessed value equals the market value; however, this is sometimes the exception rather than the rule.
Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when homes in the area have not been reassessed for an extended period of time.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the appraised value of the property will vary.
Reality: The cost of the house does not affect the pay of the appraiser; as a result, the appraiser has no pressured interest in the value of the property. What this means is he will provide task with impartiality and objectivity regardless of for whom the appraisal is created.
Myth: The replacement cost of the property is always in line with the market value.
Reality: Without any suggestion from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular property.
The dollar amount required to rebuild a property is what forms the replacement cost.
Myth: There are specific methods that real estate appraisers use to determine the value of a home, such as the price per square foot.
Reality: There are many differing formulae that an appraiser will use to make a full investigation of every factor in consideration of the home, such as the size, location, condition, how close it is to undesirable facilities and the sales prices of recently sold comparable houses.
Myth: As houses increase in value by a specific percentage - in a robust economic state - the properties nearby are figured to appreciate by the same amount.
Reality: The appreciation of a specific home has to be determined on a case-by-case basis, factoring in information on comparable houses and other relevant considerations.
It doesn't matter if the economy is doing well or declining.
Myth: You can generally tell what a house is worth simply by looking at the exterior.
Reality: To conclude a definite value beyond all doubt, an appraiser must inspect the property on a variety of factors based on location, condition, improvements, amenities, and current market trends.
There's no real way to get all of this data from simply viewing the property from the exterior.
Myth: Since you're the one funding for the appraisal when applying for the loan to purchase or refinance your home, you own the provided appraisal.
Reality: The document is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal.
Home buyers have to be provided with a version of the document through request because of the Equal Credit Opportunity Act.
Myth: Consumers need not be concerned with what is in their appraisal document so long as it satisfies the needs of their lending agency.
Reality: It is a very good idea for consumers to check over a copy of their report so that they can verify the accuracy of the document, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a great deal of information stored in an appraisal report that can be useful to the home buyer in the future, such as 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: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is no different than a home inspection.
Reality: Appraisal reports are completely different than a home inspection.
An appraiser forms an opinion of value in the appraisal process and resulting document.
House inspectors will write a report that will explain the condition of the home and its major components and possible damage.
