Myth: Assessed value should always be similar to market value.
Reality: It is possible that Oklahoma, like most states, supports the suggestion that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. Generally when interior remodeling has been done and the assessor is unaware of the improvement or properties in the neighborhood have not been reassessed for quite a while, it may vary widely.
Myth: The buyer or the seller can have some pull in the value of the house depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the outcome of the appraisal report and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Market value will equal replacement cost.
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 external group to buy or sell. Replacement cost is the dollar amount needed to rebuild a property in-kind.
Myth: There are specific methods that appraisers use to determine the opinion of value of a house, such as the price per square foot.
Reality: Appraisers complete an exhaustive analysis of all factors pertaining to the value of a property, including its location, condition, size, proximity to facilities and recent sale prices of comparable houses.
Myth: In a robust economy - when the values of homes in a given county are found to be rising by a particular percentage - the values of individual homes in the vicinity can be expected to rise by that same percentage.
Reality: Any value an appraiser reports in regards to a specific property is always individualized, based on certain factors concluded from the data of comparable houses and other considerations within the house itself. This is true in good economic times as well as bad.
Myth: You can often tell what a property is worth simply by looking at the outside.
Reality: There are a multitude of different factors that show property value; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just looking at the house from the exterior.
Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their house, they legally own their appraisal.
Reality: The appraisal is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the report. Consumers must be supplied with a copy of the appraisal report upon written request as per the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their document so long as it satisfies the needs of their lending company.
Reality: A home buyer should definitely look through their report; there will probably be some questions or some worries about the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve as a record for the future, containing an incredible amount of information - including, but certainly 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: Appraisers are hired only to assess building values in home sales involving mortgage-lending deals.
Reality: Based upon their qualifications and designations, appraisers can and often do perform a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is no different than a home inspection report.
Reality: A home inspection report has a completely different purpose than an appraisal. The appraiser finds an opinion of value in the appraisal process and resulting report. The point of a home inspector is to assess the condition of the property and its main components, then write a report on their inspection.
