Myth: Market value should be the same as the assessed value of the property.
Reality: It could be that Georgia, like most states, validates the common myth that the assessed value is the same as the market value; however, this is not always true.
Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby properties are prime examples of why this occurs.
Myth: Depending on if the appraisal is ordered for the buyer or the seller, the cost of the home will vary.
Reality: There is no real interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, despite of for whom the appraisal is created.
Myth: Market value should equal replacement cost.
Reality: Market value is based on what a willing buyer would be interested in paying a willing seller for a particular home, with neither being under duress to buy or sell.
The dollar amount required to reconstruct a home is what forms the replacement cost.
Myth: Appraisers use a calculation, like a certain price per square foot, to arrive at the value of a property.
Reality: Appraisers complete a full analysis of all factors in consideration to the value of a house, including its location, condition, size, proximity to facilities and recent values of comparable homes.
Myth: When the economy is doing well and the sales prices of homes are reported to be increasing by a certain percentage, the other homes in the neighborhood can be expected to increase based on that same percentage.
Reality: All appreciation of value is on a case-by-case basis, found by information on relevant considerations and the data of comparable homes.
This is true in robust economic times as well as bad.
Myth: You can often tell what a home is worth simply by looking at the exterior.
Reality: Property value is concluded by a number of factors, including - but not limited to - area, condition, improvements, amenities, and market trends.
There's no real way to get all of this data from just examining the property from the exterior.
Myth: Since the consumer is the one who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Reality: Legally, the report is owned by the lender unless the lender relinquishes their interest in the appraisal.
However, home buyers must be given a copy of the report upon written request, because of the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the appraisal report so long as it meets the necessities of their lending company.
Reality: It is very important for consumers to read a copy of their appraisal so that they can double-check the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a great deal of data contained in an appraisal that will probably 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 vicinity.
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 often do provide a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't need to get an appraisal if you have had a home inspection.
Reality: Appraisal reports are definitely not the same as a home inspection.
The job of the appraiser is to find an opinion of value in the appraisal process and through creating the report.
House inspectors will write a report that will explain the condition of the home and its major components and possible damage.