Myth: Assessed value generally will be the same as market value.
Reality: It could be that North Carolina, like most states, validates the suggestion that the assessed value equates to the market value; however, this is not often the case.
Generally when interior remodeling has been done and the assessor is unaware of the improvement or properties in the Clemmons have not been reassessed for quite some time, it may vary widely.
Myth: The buyer or the seller can have leverage in the cost of the property depending upon for whom the appraiser is working.
Reality: The price of the property does not affect the salary of the appraiser; due to this, the appraiser has no preconceived interest in the value of the home. What this means is he will provide services with impartiality and objectivity regardless of for whom the appraisal is created.
Myth: Any time market value is calculated, it should match the replacement cost of the home.
Reality: Market value is derived from what a willing buyer would be interested in paying a willing seller for a certain property, with neither being under pressure to buy or sell.
The dollar amount demanded to rebuild a property is what constitutes the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to conclude the value of a home.
Reality: Appraisers complete a comprehensive analysis of all factors pertaining to the value of a house, including its location, condition, size, proximity to facilities and recent values of comparable homes.
Myth: When the economy is strong and the sales prices of homes are found to be appreciating by a certain percentage, the other properties in the proximity can be expected to appreciate based on that same percentage.
Reality: An increase in value of a specific house must be concluded on an individualized basis, factoring in data on comparable properties and other relevant considerations.
It makes no difference whether the economy is powerful or bad.
Myth: The home's exterior is determinate of the expected price of the house; it is unnecessary to do an interior inspection.
Reality: To determine an accurate value beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and market trends.
There's no real way to get all of this information from just looking at the property from the outside.
Myth: Since you're the one funding for the appraisal report when applying for the loan to purchase or refinance real estate, you own the ordered appraisal.
Reality: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending agency that purchased the appraisal.
However, consumers must be provided with a copy of the appraisal report upon written request, under the Equal Credit Opportunity Act.
Myth: There's no point for home buyers to even care about what the report contains so long as their lending company is satisfied.
Reality: It is very important for consumers to look at a copy of their appraisal so that they can double-check the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a great deal of information stored in a report that can be useful to the home buyer in the future, such as 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: The only reason someone would hire an appraiser is if a house 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: A home inspection serves the same purpose as an appraisal.
Reality: A home inspection serves a completely different purpose than an appraisal report.
An appraiser finds an opinion of value in the appraisal process and resulting appraisal report.
A home inspector assesses the condition of the building and its main components and reports these findings.
