Myth: The value that is assessed by the appraiser must be exactly the same as the market value.
Reality: It is possible that North Carolina, like most states, supports the suggestion that the assessed value is the same as the market value; however, this is not always true.
Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an extended period.
Myth: Depending on whether the appraisal is done for the buyer or the seller, the appraised value of the home will vary.
Reality: The appraised value of the house does not affect the salary of the appraiser; as a result, the appraiser has no vested interest in the opinion of value of the home. This means that he will conduct business with impartiality and independence regardless of for whom the appraisal is provided.
Myth: Any time market value is calculated, it should equal the replacement cost of the house.
Reality: Market value is acquired by what a willing buyer would likely pay a willing seller for a certain property, with neither being under pressure to buy or sell.
The dollar amount necessary to rebuild a property is what shows the replacement cost.
Myth: There are specific ways that appraisers use to show the opinion of value of a home, such as the price per square foot.
Reality: Appraisers complete a detailed analysis of all factors pertaining 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 prices of properties in a given neighborhood are found to be increasing by a particular percentage - the prices of individual houses in the vicinity can be expected to appreciate by that same percentage.
Reality: All increase of value is on an individual basis, concluded by data on relevant elements and the data of comparable houses.
It makes no difference whether the economy is robust or on the decline.
Myth: The house's exterior is determinate of the actual value of the home; there is no need to do an interior inspection.
Reality: There are a multitude of different variables that conclude the value of a home; these factors include location, condition, improvements, amenities, and market trends.
Obviously, none of these factors can be derived just by inspecting the home from the exterior.
Myth: Because the consumer is the one who puts up the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Reality: Legally, the appraisal is owned by the lending agency unless the lender releases their interest in the document.
Home buyers must be provided with a copy of the document through request as per the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even worry about what the appraisal contains so long as their lending agency is fine with the contents therein.
Reality: A consumer should definitely inspect their report; there could be some questions or some worries with the accuracy of the appraisal report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
An appraisal can serve as a record for the future, containing an incredible amount of data - 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: Appraisers are hired only to assess house values in home sales involving mortgage-lending transactions.
Reality: Hiring an appraiser can fulfill a variety of requirements 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 get a home inspection.
Reality: A home inspection report serves a completely different purpose than an appraisal.
The appraiser forms an opinion of value in the appraisal process and resulting appraisal report.
The task of a home inspector is to approximate the condition of the property and its major components, then create a report on their inspection.
