Myth: The value that is ascertained by the appraiser must be the same as the market value.
Reality: It might be that New York, like most states, supports the idea that the assessed value equals the market value; however, this is not often the case. Examples include when interior remodeling has happened and the assessor is unaware of the improvements, or when homes in the area have not been reassessed for an prolonged period.
Myth: The appraised value of a home will vary depending upon if the appraisal is produced for the buyer or the seller.
Reality: The price of the house does not affect the salary of the appraiser; due to this, the appraiser has no vested interest in the price of the property. Obviously, he will render job with impartiality and independence regardless of for whom the appraisal is provided.
Myth: Market value will mirror replacement cost.
Reality: Without any suggestion from any different parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific home. The replacement cost is the dollar amount needed to reconstruct a property in-kind.
Myth: There are specific methods that appraisers use to show the opinion of value of a house, like the price per square foot.
Reality: An appraisal report is an amalgamation of data based on the home's size, location, proximity to some facilities, the condition of the house and the values of recent comparable sales. You can depend on Valutron Appraisal Services, Inc.'s appraisers to be honest in assessing this information.
Myth: In a powerful economy - when the sales prices of properties in a given neighborhood are reported to be increasing by a certain percentage - the values of individual homes in the vicinity can be expected to appreciate by that same percentage.
Reality: Any value an appraiser reports in regards to a particular home is always personalized, based on certain factors derived from the information of comparable homes and other specifications within the home itself. It makes no difference whether the economy is strong or poor.
Myth: The home's outside is determinate of the expected price of the house; there is no need to do an interior appraisal.
Reality: To conclude an accurate value beyond all doubt, an appraiser must examine the property on a variety of factors based on location, condition, improvements, amenities, and current market trends. There's no real way to get all of this data from simply viewing the home from the outside.
Myth: Since you're the one paying for the appraisal report when applying for your loan to buy or refinance your home, you own the produced appraisal report.
Reality: Unless a lending agency releases its vestment in the report, it is legally owned by the lending company that purchased the appraisal. Under the Equal Credit Opportunity Act, any consumer requesting a copy of the appraisal report must be given one by their lending company.
Myth: Home buyers need not care about what is in their appraisal report so long as it meets the needs of their lending agency.
Reality: A consumer should definitely inspect their report; there might be some questions or some worries with the accuracy of the analysis that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information stored in an appraisal that will probably 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 region.
Myth: The only reason someone would order an appraisal is if a house needs its value estimated in a lender-based sales transaction.
Reality: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a variety 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 have had a home inspection.
Reality: A home inspection report has a completely different purpose than an appraisal report. The task of the appraiser is to conclude an opinion of value in the appraisal process and through producing the report. The point of a home inspector is to approximate the condition of the property and its major components, then provide a report on these findings.