Myth: Market value will always be similar to the assessed value of the property.
Reality: It might be that Georgia, like most states, supports the idea that the assessed value is no different from the market value; however, this certainly varies based on state-to-state.
Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when properties in the area have not been reassessed for an prolonged period of time.
Myth: The buyer or the seller can have an influence in the value of the home depending upon for whom the appraiser is working.
Reality: There is no real interest on the part of the appraiser in the result of the analysis, therefore he will conduct his work with impartiality and independence, no matter of for whom the appraisal is written.
Myth: Market value will be the same as replacement cost.
Reality: Without any pressure from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular property.
Replacement value is the dollar amount necessary to rebuild a house in-kind.
Myth: There are certain methods that appraisers use to show the cost of a house, like the price per square foot.
Reality: An appraisal is a collection of information based on the property's size, location, proximity to certain facilities, the condition of the home and the values of recent comparable sales. You can rely on Reachable Appraisal & Inspection Services's staff to be honest in assessing this information.
Myth: As properties appreciate by a certain percentage - in a strong economic state - the properties around the appreciating properties are expected to appreciate by the same amount.
Reality: Any value an appraiser reports concerning a certain home is always individualized, based on certain factors pulled from the data of comparable homes and other specifications within the property itself.
This is true in good economic times as well as bad.
Myth: Just examining what the home looks like on the outside gives an excellent idea of its value.
Reality: To find a definite value beyond all doubt, an appraiser must assess the property on a variety of factors based on location, condition, improvements, amenities, and current market trends.
Obviously, none of these variables can be derived just by looking at the home from the outside.
Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance their property, they legally own their appraisal report.
Reality: The document is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal.
Under the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be given one by their lending agency.
Myth: Home buyers need not care about what is in their document so long as it satisfies the necessities of their lending group.
Reality: Only when home buyers examine a copy of their appraisal 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.
Also, the report makes a valuable record for future reference, comprised of helpful and often-revealing information - including 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 assess building values in house sales involving mortgage-lending deals.
Reality: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no reason to get an appraisal if you order a home inspection.
Reality: A home inspection report serves a completely different purpose than an appraisal.
An appraiser decides upon an opinion of value in the appraisal process and resulting document.
House inspectors will create a report that will explain the condition of the home and its major components and possible damage.