Myth: The value that is assessed by the appraiser is required to be the same as the market value.
Reality: It is probable that Idaho, like most states, supports the suggestion that the assessed value is no different from the market value; however, this is not always true.
Examples include when interior reconstruction has occurred and the assessor has not seen the improvements, or when properties in the area have not been reassessed for an prolonged period.
Myth: The buyer or the seller sometimes may have some pull in the value of the house depending upon for whom the appraiser is working.
Reality: There is no personal 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 created.
Myth: Any time market value is established, it should be the same as the replacement cost of the home.
Reality: Market value is based on what a willing buyer would be interested in paying a willing seller for a specific house, with neither being under duress to buy or sell.
Replacement cost is the dollar amount required to reconstruct a house in-kind.
Myth: Certain formulae, such as the price per square foot of the property, are what appraisers use to arrive at the value of a property.
Reality: An appraisal report is a collection of data based on the home's size, location, proximity to undesirable facilities, the condition of the property and the values of recent comparable sales. You can count on Anderson Appraisals's staff to be honest in assessing this data.
Myth: As homes increase in value by a specific percentage - in a strong economy - the homes nearby are figured to appreciate by the same amount.
Reality: The appreciation of a specific house is always determined on an individualized basis, factoring in information on comparable properties and other relevant elements.
It doesn't matter if the economy is doing well or declining.
Myth: The house's outside is determinate of the actual value of the home; there is no need to do an interior inspection.
Reality: To conclude an accurate value beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and market trends.
An exterior inspection obviously can't provide all of the information necessary.
Myth: Since the consumer is the one who provides the capital to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.
Reality: Legally, the appraisal is owned by the lender unless the lender releases their interest in the appraisal.
However, consumers have to be given a copy of the document upon written request, because of the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their document so long as it satisfies the necessities of their lending institution.
Reality: A consumer should definitely look through their appraisal report; there might be some questions or some worries with the accuracy of the appraisal that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
An report can double as a record for the future, as it contains an exorbitant amount of information - including, but 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a house during a sales transaction involving a lending company.
Reality: Based upon their qualifications and designations, appraisers can and often do perform a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: Appraisal reports are nothing like a home inspection report.
The function of an appraisal report is to form an opinion of market value during the appraisal process and the production of the appraisal report.
The task of a home inspector is to find the condition of the property and its major components, then create a report on these findings.
