Myth: Assessed value generally will equate market value.
Reality: It might be that Georgia, like most states, supports the idea that the assessed value equals the market value; however, this is not always true. Interior remodeling that the assessor has not investigated and a lack of reassessment on nearby homes are perfect examples of why the price can vary.
Myth: The opinion of value of a home will differ depending upon whether the appraisal is produced for the buyer or the seller.
Reality: The cost of the house does not affect the payment of the appraiser; because of this, the appraiser has no pressured interest in the cost of the property. This means that he will render services with impartiality and objectivity regardless of for whom the appraisal is created.
Myth: Market value should equate to replacement cost.
Reality: Without any pressure from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular house. The dollar amount required to reconstruct a property is what shows the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to arrive at the cost of a house.
Reality: An appraisal report is an amalgamation of data based on the property's size, location, proximity to undesirable facilities, the condition of the house and the worth of recent comparable sales. You can count on Grantham Appraisal & Realty, Inc.'s staff to be ethical in assessing this data.
Myth: When the economy is strong and the cost of houses are found to be increasing by a certain percentage, the other houses in the vicinity can be expected to appreciate based on that same percentage.
Reality: Price appreciation of a specific home has to be determined on an individualized basis, factoring in information on comparable homes and other relevant elements. This is true in fair economic times as well as bad.
Myth: Just examining what the home looks like on its exterior gives a good idea of its worth.
Reality: There are a number of different variables that determine property value; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived just by inspecting the property from the exterior.
Myth: Since you're the one paying for the appraisal report when applying for the loan to purchase or refinance real estate, you own the provided appraisal.
Reality: Legally, the appraisal is owned by the lending agency unless the lender releases their interest in the appraisal. However, home buyers must be given a copy of the appraisal upon written request, due to the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even care about what the report contains so long as their lending company is satisfied.
Reality: Only when consumers examine a copy of their appraisal report can they double-check 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 near perfect record for future reference, filled with useful and often-revealing 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 vicinity.
Myth: Appraisers are hired only to estimate building values in property sales involving mortgage-lending deals.
Reality: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: A home inspection report serves a completely different purpose than an appraisal report. An appraiser forms an opinion of value in the appraisal process and resulting report. A home inspector assesses the condition of the building and its major components and reports their findings.