Myth: Assessed value should always be similar to market value.
Reality: It could be that Oklahoma, like most states, validates the idea that the assessed value is the same as the market value; however, this certainly varies based on state-to-state.
Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby homes are exact examples of why the price can vary.
Myth: Depending on whether the appraisal is produced for the buyer or the seller, the appraised value of the property will vary.
Reality: There is no personal interest on the part of the appraiser in the result of the analysis, therefore he will complete his work with impartiality and independence, regardless of for whom the appraisal is written.
Myth: The replacement cost of the property will be on par with the market value.
Reality: The way market value is found is based on what a buyer would be willing to pay a willing seller for a home without being under influence from any outside party to purchase or sell.
Replacement cost is the dollar amount necessary to reconstruct a house in-kind.
Myth: Specific methods, like the price per square foot of the property, are the ways appraisers use to come to the value of a property.
Reality: An appraisal report is a collection 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 rely on Morty Land (Company Name)'s staff to be ethical in assessing this data.
Myth: As homes appreciate by a specific percentage - in a strong economic state - the homes around the appreciating properties are figured to increase by the same amount.
Reality: An increase in value of a certain home is always concluded on an individualized basis, factoring in information on comparable properties and other relevant specifications within the house itself.
It doesn't matter if the economy is doing well or declining.
Myth: Just seeing what the house looks like on the outside gives an excellent idea of its value.
Reality: Home value is concluded by a number of factors, including - but not limited to - area, condition, improvements, amenities, and market trends.
Obviously, none of these variables can be derived just by inspecting the house from the outside.
Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their property, they own their appraisal.
Reality: Unless a lender releases its vestment in the report, it is legally owned by the lending company that purchased the appraisal.
Due the Equal Credit Opportunity Act, any consumer demanding a copy of the appraisal report must be given one by their lender.
Myth: Home buyers need not care about what is in their appraisal report so long as it meets the needs of their lending company.
Reality: Only when home buyers check out a copy of their appraisal report can they ensure 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 an incredible amount of data contained in an appraisal that should 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 region.
Myth: Appraisals are ordered only to estimate home values in home sales involving mortgage-lending transactions.
Reality: Appraisers can have many different qualifications and designations which allow them to provide a lot 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 house inspection serves the same purpose as an appraisal.
Reality: An appraisal report does not fulfill the same purpose as an inspection.
The job of the appraiser is to find an opinion of value in the appraisal process and through writing the report.
The job of a home inspector is to approximate the condition of the home and its major components, then provide a report on these inspection.