Myth: Market value will be equivocal to the assessed value of the property.
Reality: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always.
There are times when interior remodeling has occurred and the assessor is not aware of the improvement or other homes in the neighborhood have not been reassessed for a good length of time, it may vary widely.
Myth: The value of a house will be different depending upon if the appraisal is conducted for the buyer or the seller.
Reality: There is no personal interest on the part of the appraiser in the result of the report, therefore he will complete his work with impartiality and independence, regardless of for whom the appraisal is created.
Myth: The replacement cost of the home is always in line with the market value.
Reality: Market value is found by what a willing buyer would likely pay a willing seller for a specific house, with neither being under pressure to buy or sell.
The dollar amount required to rebuild a property is what constitutes the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to arrive at the value of a house.
Reality: An appraisal is an assertion of data concluded from the house's size, location, proximity to certain facilities, the condition of the home and the values of recent comparable sales. You can rely on ATP Appraisals, LLC. (973) 283-2266's appraisers to be forthright in assessing this information.
Myth: In a strong economy - when the prices of homes in a given area are reported to be rising by a particular percentage - the values of individual homes in the proximity can be expected to increase by that same percentage.
Reality: All increase of value is on an individual basis, concluded by data on relevant considerations and the data of comparable homes.
This is true in robust economic times as well as bad.
Myth: You can usually see what a property is worth simply by looking at the exterior.
Reality: Property value is determined by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends.
There's no real way to get all of this data from simply examining the home from the exterior.
Myth: Since you're the one funding for the appraisal when applying for the loan to purchase or refinance your house, you own the provided appraisal.
Reality: Legally, the document is owned by the lender unless the lender relinquishes their interest in the report.
Home buyers have to be provided with a version of the appraisal report through request because of the Equal Credit Opportunity Act.
Myth: Consumers need not be concerned with what is in their document so long as it satisfies the necessities of their lending company.
Reality: A consumer should definitely inspect their appraisal; there could be some questions or some concerns with the accuracy of the appraisal that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a great deal of information stored in an appraisal that will probably be useful to the consumer 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 proximity.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a home during a sales transaction involving a lending agency.
Reality: Hiring an appraiser can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is no different than a home inspection report.
Reality: An appraisal report does not fulfill the same purpose as an inspection.
An appraiser forms an opinion of value in the appraisal process and resulting document.
The point of a home inspector is to assess the condition of the home and its main components, then compose a report on their conclusions.