Myth: The value that is assessed by the appraiser must be equivalent to the market value.
Reality: It might be that Delaware, like most states, validates the common myth that the assessed value equals the market value; however, this is not always true. Examples include when interior remodeling has happened and the assessor does not know about the improvements, or when properties in the area have not been reassessed for an extended period.
Myth: The buyer or the seller often will have some pull in the cost of the house depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the outcome of the appraisal and should complete services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement value of the home will be on par with the market value.
Reality: The way market value is arrived at is based on what a home buyer would likely pay a willing seller for a home without being under duress from any outside group to purchase or sell. If the property were rebuilt, the dollar amount necessary to do so would make up the replacement cost.
Myth: Certain methods, such as the price per square foot of the property, are the methods appraisers use to determine the value of a house.
Reality: An appraisal report is an assertion of data based on the house's size, location, proximity to certain facilities, the condition of the house and the values of recent comparable sales. You can count on First State Appraisal Group, Inc.'s appraisers to be ethical in assessing this data.
Myth: As homes increase in value by a specific percentage - in a robust economy - the houses nearby are figured to increase by the same amount.
Reality: Any value an appraiser derives concerning a certain home is always personalized, based on certain factors found from the information of comparable homes and other specifications within the house itself. It doesn't matter if the economy is on the rise or declining.
Myth: The property's outside is determinate of the actual value of the house; there is no need to do an interior appraisal.
Reality: Property value is concluded by a multitude of factors, including area, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the data required.
Myth: Since you're the one providing the money for the appraisal when applying for your loan to buy or refinance your home, you own the produced appraisal.
Reality: The document is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the report. Home buyers have to be given a version of the report upon written request because of the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their document so long as it meets the requirements of their lending agency.
Reality: It is a very good idea for consumers to look at a copy of their report so that they can double-check the accuracy of the document, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information stored in a report 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 assess building values in house sales involving mortgage-lending deals.
Reality: Depending upon their qualifications and designations, appraisers can and may provide a multitude of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't have to get an appraisal if you order a home inspection.
Reality: A home inspection report serves a completely different purpose than an appraisal report. An appraiser concludes on an opinion of value in the appraisal process and resulting appraisal. The job of a home inspector is to assess the condition of the home and its major components, then produce a report on these conclusions.
