Myth: The value that is assessed by the appraiser is required to be exactly the same as the market value.
Reality: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always.
Often when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the Issaquah have not been reassessed for a good length of time, it may vary widely.
Myth: Depending on if the appraisal is written for the buyer or the seller, the value of the house will vary.
Reality: The appraiser has no vested interest in the result of the appraisal and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement value of the home will be on par with the market value.
Reality: Without any pressure from any different parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular property.
The dollar amount necessary to rebuild a property is what constitutes the replacement cost.
Myth: There are specific ways that appraisers use to find the value of a house, like the price per square foot.
Reality: Appraisers make a full analysis of all factors in consideration to the value of a property, including its location, condition, size, proximity to facilities and recent values of comparable properties.
Myth: In a robust economy - when the values of homes in a given neighborhood are found to be increasing by a particular percentage - the prices of individual houses in the proximity can be expected to rise by that same percentage.
Reality: All increase of value is on a one-on-one basis, concluded by data on relevant elements and the data of comparable properties.
It doesn't matter if the economy is on the rise or declining.
Myth: You can often find what a property is worth simply by looking at the exterior.
Reality: To determine a solid value beyond all doubt, an appraiser must examine the property on a variety of factors based on location, condition, improvements, amenities, and current market trends.
An exterior inspection certainly can't provide all of the data necessary.
Myth: Since the consumer is the party who puts up the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Reality: The report is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document.
However, home buyers have to be provided with a copy of the report upon written request, under the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their document so long as it exceeds the necessities of their lending group.
Reality: A home buyer should definitely read through their document; there could be some questions or some worries about the accuracy of the report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the report makes an invaluable record for future reference, containing helpful 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 vicinity.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a property during a sales transaction involving a lending agency.
Reality: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You shouldn't need to get an appraisal if you order a home inspection.
Reality: Appraisal reports have almost nothing in common with a home inspection.
The function of an appraisal is to conclude upon an opinion of market value during the appraisal process and the completion of the appraisal report.
The task of a home inspector is to find the condition of the house and its main components, then write a report on these conclusions.