Myth: The value that is ascertained by the appraiser should be the same as the market value.
Reality: It is possible that North Carolina, like most states, supports the common myth that the assessed value equals the market value; however, this certainly varies based on state-to-state.
Interior reconstruction that the assessor is unaware of and a lack of reassessment on nearby houses are excellent examples of why the price can vary.
Myth: The opinion of value of a home will differ depending upon if the appraisal is produced for the buyer or the seller.
Reality: There is no personal interest on the part of the appraiser in the outcome of the appraisal, therefore he will complete his work with impartiality and independence, no matter of for whom the appraisal is conducted.
Myth: Any time market value is established, it should be the same as the replacement cost of the house.
Reality: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under pressure to buy or sell.
If the home were reconstructed, the dollar amount needed to do so would make up the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to figure out the value of a house.
Reality: An appraisal is an amalgamation of data concluded from the property's size, location, proximity to undesirable facilities, the condition of the home and the values of recent comparable sales. You can depend on Mountain Appraisal Service, LLC's staff to be forthright in assessing this information.
Myth: As properties increase in value by a certain percentage - in a robust economic state - the properties nearby are figured to increase by the same amount.
Reality: Any value an appraiser reports concerning a particular home is always individualized, based on certain factors concluded 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: The home's outside is determinate of the actual value of the property; it is unnecessary to do an interior appraisal.
Reality: To find a genuine value beyond all doubt, an appraiser must assess the property on a variety of factors based on location, condition, improvements, amenities, and current market trends.
An exterior inspection obviously can't provide all of the data necessary.
Myth: Because the consumer is the party who puts up the capital to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Reality: Unless a lending agency releases its vestment in the document, it is legally owned by the lending company that purchased the appraisal.
Consumers must be given a copy of the appraisal report upon written request due to the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal report so long as it meets the necessities of their lending company.
Reality: A home buyer should definitely inspect their document; there will probably be some questions or some concerns with the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
An appraisal can serve as a record for the future, as it contains 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 proximity.
Myth: The only reason someone would hire an appraiser is if a property needs its value estimated in a lender sales transaction.
Reality: Depending upon their qualifications and designations, appraisers can and do perform a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no need to get an appraisal if you get a home inspection.
Reality: A home inspection report has a completely different purpose than an appraisal report.
The reason behind an appraisal report is to conclude upon an opinion of market value during the appraisal process and the production of the appraisal.
House inspectors will write a report that will show the condition of the home and its major components and possible damage.