Myth: Assessed value generally will be similar to market value.
Reality: It is possible that New York, like most states, supports the suggestion that the assessed value is the same as the market value; however, this is not often the case.
Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when properties in the area have not been reassessed for an prolonged period.
Myth: Depending on if the appraisal is produced for the buyer or the seller, the opinion of value of the property will vary.
Reality: The appraiser has no vested interest in the outcome of the appraisal report and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the property should be on par with the market value.
Reality: Without any suggestion from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular property.
The dollar amount needed to rebuild a property is what shows the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to come to the value of a property.
Reality: An appraisal report is an amalgamation of information based on the house's size, location, proximity to specific facilities, the condition of the home and the values of recent comparable sales. You can count on All Points Appraisal, Inc.'s staff to be honest in assessing this information.
Myth: As houses appreciate by a specific percentage - in a strong economic state - the properties in proximity are figured to increase by the same amount.
Reality: Any value an appraiser reports concerning a certain house is always individualized, based on certain factors derived from the information of comparable homes and other specifications within the house itself.
It doesn't matter if the economy is doing well or declining.
Myth: You can often find what a home is worth simply by looking at the exterior.
Reality: To find a definite value beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and current market trends.
As you can see, none of these factors can be found simply by examining the property from the outside.
Myth: Because the consumer is the one who puts up the money to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal is theirs.
Reality: The report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the appraisal report.
Consumers have to be provided with a version of the report through request due to the Equal Credit Opportunity Act.
Myth: Consumers need not be concerned with what is in their report so long as it satisfies the requirements of their lending agency.
Reality: Only when consumers examine a copy of their appraisal report can they verify its accuracy and know if they should ask questions. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal makes a valuable record for future reference, filled with 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 proximity.
Myth: The only reason someone would hire an appraiser is if a property needs its value assessed in a lender-based sales transaction.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a lot of different services including - but certainly 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 have had a home inspection.
Reality: An appraisal report does not fulfill the same purpose as an inspection report.
An appraiser concludes on an opinion of value in the appraisal process and resulting document.
A home inspector analyzes the condition of the building and its major components and reports their findings.