Myth: Market value must be similar to the assessed value of the property.
Reality: It could be that Alaska, like most states, supports the idea that the assessed value equates to the market value; however, this certainly varies based on state-to-state.
Sometimes when interior remodeling has been done and the assessor is not aware of the improvement or properties in the Anchorage have not been reassessed for a good length of time, it may vary widely.
Myth: The opinion of value of a home will vary depending upon if the appraisal is ordered for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the report 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: Without any suggestion from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific house.
Replacement value is the dollar amount required to reconstruct a home in-kind.
Myth: Specific methods, such as the price per square foot of the property, are what appraisers use to ascertain the value of a house.
Reality: Appraisers make an exhaustive analysis of all factors in consideration to the value of a house, including its location, condition, size, proximity to facilities and recent values of comparable properties.
Myth: As houses appreciate by a specific percentage - in a strong economy - the homes within the same neighborhood are figured to appreciate by the same amount.
Reality: The appreciation of a certain house must be determined on a case-by-case basis, factoring in data on comparable houses and other relevant elements.
This is true in good economic times as well as poor.
Myth: The home's outside is determinate of the actual value of the home; it is unnecessary to do an interior appraisal.
Reality: There are a number of different factors that conclude the value of a house; these factors include area, condition, improvements, amenities, and market trends.
There's no real way to get all of this information from just examining the house from the outside.
Myth: Since you're the one coughing up the cash for the appraisal when applying for your loan to buy or refinance your home, you own the produced appraisal report.
Reality: The appraisal is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal.
Due the Equal Credit Opportunity Act, any home buyer demanding a copy of the document must be provided with one by their lending agency.
Myth: Consumers need not care about what is in their appraisal document so long as it exceeds the needs of their lending group.
Reality: A consumer should definitely read through their document; there may be some questions or some concerns with the accuracy of the report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the report makes a valuable record for future reference, comprised of 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 proximity.
Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the value of a home during a sales transaction involving a lending agency.
Reality: Depending upon their qualifications and designations, appraisers can and may perform a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Reality: A home inspection serves a completely different purpose than an appraisal.
An appraiser concludes on an opinion of value in the appraisal process and resulting document.
House inspectors will compose a report that will explain the condition of the home and its major components and possible damage.
