Myth: The value that is ascertained by the appraiser must be the same as the market value.
Reality: It might be that Connecticut, like most states, supports the common myth that the assessed value equates to the market value; however, this is not often the case.
There are times when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the West Haven have not been reassessed for a good length of time, it may vary widely.
Myth: The value of a property will vary depending upon whether the appraisal is ordered for the buyer or the seller.
Reality: The appraiser has no personal interest in the result of the appraisal report and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement value of the house will be on par with the market value.
Reality: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a property without being under duress from any external party to buy or sell.
The dollar amount needed to rebuild a home is what shows the replacement cost.
Myth: There are specific methods that appraisers use to find the cost of a property, like the price per square foot.
Reality: There are many differing formulae that an appraiser will use to make a detailed investigation of every factor in consideration of the property, such as the size, location, condition, how close it is to specific facilities and the values of recently sold comparable houses.
Myth: When the economy is doing well and the sales prices of houses are reported to be rising by a certain percentage, the other properties in the vicinity can be expected to rise based on that same percentage.
Reality: An increase in value of a certain house has to be determined on a case-by-case basis, factoring in information on comparable houses and other relevant specifications within the house itself.
It makes no difference whether the economy is robust or terrible.
Myth: You can commonly find what a home is worth simply by looking at the exterior.
Reality: To find a conclusive value beyond all doubt, an appraiser must inspect the property on a variety of factors based on location, condition, improvements, amenities, and current market trends.
There's no possible way to get all of this data from just inspecting the house from the exterior.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to buy or refinance real estate, you own the provided appraisal.
Reality: The report is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document.
However, home buyers must be given a copy of the document upon written request, due to the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the requirements of their lending company.
Reality: It is a very good idea for home buyers to read a copy of their appraisal so that they can double-check the accuracy of the report, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the report makes a near perfect record for future reference, containing helpful and often-revealing information - including, but not limited to, 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 area.
Myth: Appraisals are ordered only to estimate home values in property sales involving mortgage-lending transactions.
Reality: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A house inspection serves the same purpose as an appraisal.
Reality: An appraisal report does not serve the same purpose as an inspection report.
The job of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report.
The job of a home inspector is to find the condition of the property and its main components, then produce a report on these findings.
