Myth: Assessed value will always equate market value.
Reality: It is probable that Florida, like most states, validates the common myth that the assessed value is the same as the market value; however, this certainly varies based on state-to-state.
Interior reconstruction that the assessor is not aware of and a lack of reassessment on nearby houses are prime examples of why there might be a differential in price.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the appraised value of the property will vary.
Reality: The appraised value of the home does not affect the salary of the appraiser; as such, the appraiser has no pressured interest in the value of the house. This means that he will provide job with impartiality and objectivity regardless of for whom the appraisal is produced.
Myth: Any time market value is determined, it should match the replacement cost of the home.
Reality: The way market value is arrived at is based on what a buyer would be willing to pay a willing seller for a house without being under pressure from any external group to purchase or sell.
If the house were rebuilt, the dollar amount needed to do so would make up the replacement cost.
Myth: Appraisers use a calculation, such as a specific price per square foot, to figure out the value of a home.
Reality: An appraisal is an amalgamation of information based on the property's size, location, proximity to some facilities, the condition of the home and the values of recent comparable sales. You can count on Elite Appraisal Services's appraisers to be ethical in assessing this information.
Myth: In a robust economy - when the prices of properties in a given county are found to be increasing by a certain percentage - the prices of individual properties in the area can be expected to increase by that same percentage.
Reality: Any value an appraiser reports concerning a specific home is always individualized, based on certain factors pulled from the data of comparable houses and other specifications within the property itself.
This is true in good economic times as well as bad.
Myth: The house's outside is determinate of the actual value of the house; there is no need to do an interior appraisal.
Reality: To conclude a definite value beyond all doubt, an appraiser must inspect the house on a variety of factors based on location, condition, improvements, amenities, and market trends.
An external inspection certainly can't provide all of the data required.
Myth: Because the consumer is the person who puts up the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal is theirs.
Reality: Unless a lender releases its interest in the report, it is legally owned by the lending company that purchased the appraisal.
Consumers must be given a version of the document upon written request due to the Equal Credit Opportunity Act.
Myth: There's no need for consumers to even care about what the appraisal contains so long as their lending agency is satisfied.
Reality: Only when home buyers examine a copy of their 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.
An appraisal report can double as a record for the future, containing an exorbitant amount of 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: Appraisals are ordered only to estimate building values in home sales involving mortgage-lending deals.
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: You shouldn't need to get an appraisal if you order a home inspection.
Reality: An appraisal does not serve the same purpose as an inspection.
An appraiser forms an opinion of value in the appraisal process and resulting appraisal.
House inspectors will create a report that will explain the condition of the home and its major components and possible damage.
