Myth: Assessed value should be similar to market value.
Reality: It could be that Florida, like most states, supports the common myth that the assessed value is the same as the market value; however, this is not always true.
Examples include when interior remodeling has happened and the assessor does not know about the improvements, or when homes in the area have not been reassessed for an extended time.
Myth: The buyer or the seller sometimes may have leverage in the cost of the house depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the outcome of the appraisal report and should complete services with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Any time market value is established, it should equal the replacement cost of the home.
Reality: Without any influence from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular house.
If the property were reconstructed, the dollar amount needed to do so would be the replacement cost.
Myth: Specific methods, such as the price per square foot, are the methods appraisers use to arrive at the value of a house.
Reality: There are many varied formulae that an appraiser will use to make a detailed analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to undesirable facilities and the values of recently sold comparable homes.
Myth: As properties increase in value by a certain percentage - in a strong economic state - the properties within the same neighborhood are expected to increase by the same amount.
Reality: All appreciation of value is on a case-by-case basis, determined by data on relevant elements and the data of comparable houses.
It makes no difference whether the economy is strong or on the decline.
Myth: The property's exterior is determinate of the expected price of the property; it is unnecessary to do an interior inspection.
Reality: There are a number of different factors that show the value of a house; these factors include location, condition, improvements, amenities, and market trends.
An exterior inspection certainly can't provide all of the information required.
Myth: Because consumers pay for appraisals when applying for loans to buy or refinance real estate, they own their appraisal.
Reality: The appraisal is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the appraisal.
Due the Equal Credit Opportunity Act, any home buyer demanding a copy of the document must be given one by their lending company.
Myth: Home buyers need not worry about what is in their report so long as it satisfies the necessities of their lending company.
Reality: A consumer should definitely look through their appraisal report; there might be some questions or some worries about the accuracy of the report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a wealth of data stored in an appraisal report that can 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 proximity.
Myth: The only reason someone would hire an appraiser is if a property needs its value assessed in a lender sales transaction.
Reality: Appraisers can have many different qualifications and designations which allow them to perform a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Reality: An appraisal does not fulfill the same purpose as an inspection report.
The purpose of the appraiser is to form an opinion of value in the appraisal process and through producing the report.
The job of a home inspector is to assess the condition of the home and its major components, then create a report on their findings.
