Myth: Assessed value should equate market value.
Reality: It could be that Utah, like most states, validates the idea that the assessed value is no different from the market value; however, this certainly varies based on state-to-state.
Examples include when interior remodeling has happened and the assessor has not seen the improvements, or when properties in the vicinity have not been reassessed for an prolonged period.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the value of the property will vary.
Reality: The appraised value of the house does not affect the salary of the appraiser; because of this, the appraiser has no preconceived interest in the value of the house. What this means is he will conduct business with impartiality and independence regardless of for whom the appraisal is created.
Myth: Any time market value is calculated, it should equal the replacement cost of the house.
Reality: Market value is arrived at through what a willing buyer would likely pay a willing seller for a specific home, with neither being under pressure to buy or sell.
The dollar amount necessary to rebuild a home is what shows the replacement cost.
Myth: Appraisers use a formula, such as a certain price per square foot, to come to the value of a home.
Reality: There are many numerous processes that an appraiser will use to make a comprehensive investigation of every factor pertaining to the property, such as the size, location, condition, how close it is to specific facilities and the sales prices of recently sold comparable homes.
Myth: In a powerful economy - when the values of homes in a given county are found to be increasing by a particular percentage - the values of individual houses in the area can be expected to increase by that same percentage.
Reality: All increase of value is on an individual basis, concluded by information on relevant considerations and the data of comparable houses.
It doesn't matter if the economy is doing well or declining.
Myth: The house's exterior is determinate of the expected price of the home; there is no need to do an interior inspection.
Reality: Home value is determined by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends.
As you can see, none of these things can be found just by viewing the home from the exterior.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their property, they legally own their appraisal.
Reality: Legally, the appraisal report is owned by the lender unless the lender relinquishes their interest in the document.
However, consumers must be provided with a copy of the appraisal upon written request, due to the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal report so long as it meets the requirements of their lending agency.
Reality: A consumer should definitely look through their appraisal report; there will probably be some questions or some concerns about the accuracy of the appraisal that should be addressed. 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, comprised of useful and often-revealing data - 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: Appraisals are ordered only to assess building values in home sales involving mortgage-lending transactions.
Reality: Depending upon their qualifications and designations, appraisers can and will provide a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no need to get an appraisal if you get a home inspection.
Reality: An appraisal does not fulfill the same purpose as an inspection report.
The appraiser finds an opinion of value in the appraisal process and resulting appraisal report.
The purpose of a home inspector is to determine the condition of the property and its major components, then provide a report on their findings.