Myth: The value that is ascertained by the appraiser will be the same as the market value.
Reality: It is possible that Florida, like most states, supports the idea that the assessed value equals the market value; however, this is sometimes the exception rather than the rule.
Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby houses are prime examples of why the price can vary.
Myth: The buyer or the seller will have impact in the value of the property depending upon for whom the appraiser is working.
Reality: There is no vested interest on the part of the appraiser in the outcome of the analysis, therefore he will conduct his work with impartiality and independence, despite of for whom the appraisal is created.
Myth: Any time market value is determined, it should match the replacement cost of the property.
Reality: The way market value is found is based on what a buyer would be willing to pay a willing seller for a house without being under pressure from any external party to buy or sell.
The replacement cost is the dollar amount needed to rebuild a home in-kind.
Myth: There are specific ways that appraisers use to show the value of a home, such as the price per square foot.
Reality: An appraisal report is a collection of information concluded from the property's size, location, proximity to specific facilities, the condition of the home and the values of recent comparable sales. You can depend on Ardent Appraisals & Home Inspections's staff to be ethical in assessing this information.
Myth: When the economy is strong and the sales prices of homes are found to be increasing by a certain percentage, the other homes in the vicinity can be expected to increase based on that same percentage.
Reality: An increase in value of a certain house has to be concluded on a case-by-case basis, factoring in data on comparable properties and other relevant elements.
This is true in excellent economic times as well as poor.
Myth: You can usually tell what a house is worth simply by looking at the exterior.
Reality: Home value is determined by a multitude of factors, including - but not limited to - area, condition, improvements, amenities, and market trends.
Obviously, none of these things can be found simply by viewing the house from the exterior.
Myth: Because consumers pay for appraisals when applying for loans to buy or refinance their house, they own their appraisal report.
Reality: Legally, the appraisal report is owned by the lender unless the lender relinquishes their interest in the document.
However, home buyers have to be supplied with a copy of the document upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even concern themselves with what the appraisal contains so long as their lender is satisfied.
Reality: Only when consumers read a copy of their report can they ensure its accuracy and know if they should ask questions. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is an incredible amount of information contained in an appraisal that should 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 region.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a property during a sales transaction involving a lending institution.
Reality: Appraisers can have many varied qualifications and designations which allow them to perform a variety 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 need 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 find an opinion of value in the appraisal process and through producing the report.
The point of a home inspector is to determine the condition of the home and its main components, then compose a report on their inspection.
