Myth: Market value has to be the same as the assessed value of the property.
Reality: It is possible that South Carolina, like most states, supports the idea that the assessed value is no different from the market value; however, this certainly varies based on state-to-state.
Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby houses are perfect examples of why this occurs.
Myth: The appraised value of a property will differ depending upon if the appraisal is conducted for the buyer or the seller.
Reality: There is no vested interest on the part of the appraiser in the outcome of the report, therefore he will conduct his work with impartiality and independence, regardless of for whom the appraisal is ordered.
Myth: Any time market value is determined, it should match the replacement cost of the house.
Reality: Market value is based on what a willing buyer would likely pay a willing seller for a certain property, with neither being under pressure to buy or sell.
The replacement cost is the dollar amount needed to reconstruct a home in-kind.
Myth: Certain formulae, like the price per square foot, are the methods appraisers use to determine the value of a home.
Reality: An appraisal is a collection of data based on the home's size, location, proximity to some facilities, the condition of the home and the values of recent comparable sales. You can depend on CAA Real Property Services, Inc.'s appraisers to be professional in assessing this data.
Myth: As properties appreciate by a specific percentage - in a robust economic state - the properties nearby are expected to increase by the same amount.
Reality: Any value an appraiser derives concerning a specific home is always personalized, based on certain factors pulled from the data of comparable houses and other considerations within the home itself.
This is true in robust economic times as well as bad.
Myth: You can usually see what a house is worth simply by looking at the outside.
Reality: There are a number of different factors that conclude property value; these factors include area, condition, improvements, amenities, and market trends.
Obviously, none of these factors can be found simply by looking at the house from the outside.
Myth: Since you're the one providing the money for the appraisal when applying for the loan to buy or refinance real estate, you own the produced appraisal report.
Reality: Legally, the appraisal is owned by the lending agency unless the lender releases their interest in the document.
Due the Equal Credit Opportunity Act, any consumer requesting a copy of the report must be provided with it by their lending agency.
Myth: Home buyers need not worry about what is in their appraisal report so long as it meets the needs of their lending group.
Reality: Only when home buyers examine a copy of their 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.
Also, the appraisal report makes a valuable record for future reference, containing useful and often-revealing information - including 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: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a home during a sales transaction involving a lending company.
Reality: Appraisers can have many different qualifications and designations which allow them to perform a multitude of different services including - but definitely 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.
The task of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report.
House inspectors will create a report that will express the condition of the property and its major components and possible damage.