Myth: The value that is assessed by the appraiser will be equivalent to the market value.
Reality: It might be that Florida, like most states, validates the idea that the assessed value is the same as the market value; however, this is not always true.
Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when properties in the vicinity have not been reassessed for an extended time.
Myth: The appraised value of a property will be different depending upon if the appraisal is produced for the buyer or the seller.
Reality: The appraiser has no personal interest in the result of the appraisal report and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement value of the property is always in line with the market value.
Reality: Market value is based on what a willing buyer would likely pay a willing seller for a specific property, with neither being under pressure to buy or sell.
The dollar amount needed to rebuild a house is what constitutes the replacement cost.
Myth: There are certain ways that real estate appraisers use to determine the opinion of value of a home, such as the price per square foot.
Reality: An appraisal report is a collection of information based on the home's size, location, proximity to undesirable facilities, the condition of the property and the values of recent comparable sales. You can count on First Choice Appraisal Services, Inc.'s appraisers to be forthright in assessing this information.
Myth: As properties increase in value by a certain percentage - in a robust economic state - the homes in proximity are expected to increase by the same amount.
Reality: All appreciation of value is on a case-by-case basis, determined by data on relevant considerations and the data of comparable properties.
It makes no difference whether the economy is excellent or poor.
Myth: You can commonly see what a property is worth simply by looking at the outside.
Reality: Home value is concluded by a multitude of factors, including location, condition, improvements, amenities, and market trends.
Obviously, none of these factors can be found just by inspecting the property 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 your house, you own the produced appraisal.
Reality: The document is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal report.
Due the Equal Credit Opportunity Act, any home buyer asking for a copy of the report must be given it by their lending agency.
Myth: Consumers need not worry about what is in their document so long as it meets the requirements of their lending institution.
Reality: A home buyer should definitely read through their document; there could be some questions or some concerns with the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
An appraisal report can serve as a record for the future, since it contains an incredible amount of information - 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 area.
Myth: Appraisals are ordered only to estimate home values in home sales involving mortgage-lending transactions.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a series of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: You don't have to get an appraisal if you order a home inspection.
Reality: A home inspection serves a completely different purpose than an appraisal report.
The task of the appraiser is to conclude an opinion of value in the appraisal process and through creating the report.
The task of a home inspector is to assess the condition of the house and its major components, then provide a report on these conclusions.