Myth: Market value will always be similar to the assessed value of the property.
Reality: It is probable that California, like most states, validates the idea that the assessed value equates to the market value; however, this is not always true. At times when interior remodeling has occurred and the assessor is unaware of the improvement or other homes in the neighborhood have not been reassessed for years or more, it may vary widely.
Myth: The opinion of value of a house will change depending upon if the appraisal is ordered for the buyer or the seller.
Reality: The price of the house does not affect the payment of the appraiser; as such, the appraiser has no preconceived interest in the worth of the property. What this means is he will conduct task with impartiality and objectivity regardless of for whom the appraisal is provided.
Myth: Market value should be the same as replacement cost.
Reality: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific home. The dollar amount needed to reconstruct a house is what forms the replacement cost.
Myth: Certain formulae, like the price per square foot of the property, are what appraisers use to ascertain the price of a house.
Reality: An appraisal is a collection of data based on the home's size, location, proximity to some facilities, the condition of the home and the value of recent comparable sales. You can rely on Kenny G. Adams's appraisers to be ethical in assessing this data.
Myth: As houses appreciate by a certain percentage - in a strong economy - the properties around the appreciating properties are figured to increase by the same amount.
Reality: All increase of value is on a one-on-one basis, found by data on relevant elements and the data of comparable properties. It doesn't matter if the economy is doing well or declining.
Myth: Just looking at what the property looks like on the outside gives an idea of its worth.
Reality: Home value is concluded by a multitude of factors, including area, condition, improvements, amenities, and market trends. As you can see, none of these factors can be derived just by examining 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 real estate, you own the produced appraisal.
Reality: Legally, the document is owned by the lender unless the lender releases their interest in the document. However, consumers have to be provided with a copy of the report upon written request, through the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even concern themselves with what the report contains so long as their lender is fine with the contents therein.
Reality: It is almost imperative for consumers to peruse a copy of their appraisal so that they can verify the accuracy of the document, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes a valuable record for future reference, containing useful and often-revealing 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: Appraisers are hired only to estimate house values in home sales involving mortgage-lending transactions.
Reality: Depending upon their qualifications and designations, appraisers can and often do provide a multitude of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no reason to get an appraisal if you get a home inspection.
Reality: Appraisal reports have almost nothing in common with a home inspection report. The job of the appraiser is to come to an opinion of value in the appraisal process and through producing the report. A home inspector assesses the condition of the house and its main components and reports these findings.
