Myth: The value that is ascertained by the appraiser must be equivalent to the market value.
Reality: It might be that North Carolina, like most states, supports the suggestion that the assessed value is the same as the market value; however, this is sometimes the exception rather than the rule.
Examples include when interior remodeling has happened and the assessor does not know about the improvements, or when houses in the area have not been reassessed for an extended period.
Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the cost of the property will vary.
Reality: The appraiser has no personal interest in the outcome of the appraisal report and should render his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Any time market value is established, it should be the same as the replacement cost of the home.
Reality: The way market value is found is based on what a buyer would likely pay a willing seller for a property without being under influence from any outside party to buy or sell.
Replacement cost is the dollar amount needed to reconstruct a property in-kind.
Myth: There are specific methods that appraisers use to determine the cost of a house, such as the price per square foot.
Reality: An appraisal is an assertion of data based on the home's size, location, proximity to undesirable facilities, the condition of the house and the values of recent comparable sales. You can depend on Bernabe & Barnett Appraisals LLC's appraisers to be honest in assessing this information.
Myth: When the economy is on the rise and the sales prices of properties are found to be increasing by a certain percentage, the other properties in the neighborhood can be expected to appreciate based on that same percentage.
Reality: All increase of value is on an individual basis, concluded by information on relevant considerations and the data of comparable properties.
This is true in good economic times as well as bad.
Myth: The house's outside is determinate of the actual value of the property; there is no need to do an interior inspection.
Reality: To determine a solid value beyond all doubt, an appraiser must assess the home on a variety of factors based on area, condition, improvements, amenities, and market trends.
There's no possible way to get all of this data from simply looking at the house from the exterior.
Myth: Since the consumer is the one who puts up the capital to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Reality: The appraisal is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal.
Due the Equal Credit Opportunity Act, any home buyer requesting a copy of the appraisal report must be given it by their lending agency.
Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it satisfies the needs of their lending company.
Reality: It is almost imperative for home buyers to read a copy of their appraisal so that they can verify the accuracy of the document, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a wealth of data contained in an appraisal report 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: The only reason someone would hire an appraiser is if a home needs its value estimated in a lender-based sales transaction.
Reality: Depending upon their qualifications and designations, appraisers can and may perform a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You shouldn't need to get an appraisal if you get a home inspection.
Reality: Appraisal reports are completely different than a home inspection.
An appraiser concludes on an opinion of value in the appraisal process and resulting report.
The purpose of a home inspector is to assess the condition of the property and its major components, then provide a report on their findings.
