Myth: Market value will always be similar to the assessed value of the property.
Reality: It is probable that Indiana, like most states, validates the common myth that the assessed value is the same as the market value; however, this is not always true.
Usually when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the neighborhood have not been reassessed for years or more, it may vary widely.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the cost of the house will vary.
Reality: There is no personal interest on the part of the appraiser in the result of the report, therefore he will complete his work with impartiality and independence, despite of for whom the appraisal is ordered.
Myth: Any time market value is determined, it should equal the replacement cost of the home.
Reality: The way market value is arrived at is based on what a home buyer would be willing to pay a willing seller for a house without being under influence from any outside group to purchase or sell.
Replacement cost is the dollar amount needed to reconstruct a property in-kind.
Myth: There are specific methods that real estate appraisers use to show the value of a home, such as the price per square foot.
Reality: An appraisal is an amalgamation of information concluded from the house's size, location, proximity to specific facilities, the condition of the home and the values of recent comparable sales. You can count on Accurate Appraisals's appraisers to be honest in assessing this information.
Myth: In a robust economy - when the prices of houses in a given region are found to be increasing by a certain percentage - the values of individual houses in the proximity can be expected to increase by that same percentage.
Reality: All increase of value is on a case-by-case basis, determined by data on relevant considerations and the data of comparable homes.
It doesn't matter if the economy is on the rise or declining.
Myth: Just examining what the home looks like on its exterior gives an idea of its value.
Reality: There are a number of different factors that conclude property value; these factors include location, condition, improvements, amenities, and market trends.
Obviously, none of these factors can be derived simply by inspecting the home from the outside.
Myth: Since the consumer is the person who puts up the funding to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal is theirs.
Reality: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending agency that ordered the appraisal.
Due the Equal Credit Opportunity Act, any consumer asking for a copy of the appraisal report must be provided with one by their lending company.
Myth: Home buyers need not be concerned with what is in their document so long as it exceeds the needs of their lending institution.
Reality: Only when consumers look through a copy of their appraisal report can they verify its accuracy and know if they should ask questions. 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 could 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: Appraisals are ordered only to assess real estate property values in house sales involving mortgage-lending deals.
Reality: Based upon their qualifications and designations, appraisers can and will perform a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A house inspection serves the same purpose as an appraisal.
Reality: An appraisal does not fulfill the same purpose as an inspection report.
The task of the appraiser is to come to an opinion of value in the appraisal process and through creating the report.
A home inspector assesses the condition of the building and its major components and reports these findings.