Myth: Market value should be the same as the assessed value of the property.
Reality: It could be that California, like most states, validates the common myth that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule.
Often when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the Oak Park have not been reassessed for quite some time, it may vary widely.
Myth: The value of a home will vary depending upon if the appraisal is ordered for the buyer or the seller.
Reality: The appraised value of the property does not affect the pay of the appraiser; as a result, the appraiser has no vested interest in the price of the home. This means that he will complete his job with impartiality and objectivity regardless of for whom the appraisal is provided.
Myth: Any time market value is established, it should match the replacement cost of the home.
Reality: Market value is derived from what a willing buyer would likely pay a willing seller for a particular property, with neither being under pressure to buy or sell.
The replacement cost is the dollar amount required to rebuild a house in-kind.
Myth: Specific formulae, such as the price per square foot, are the methods appraisers use to ascertain the value of a house.
Reality: An appraisal report is an amalgamation of information based on the property's size, location, proximity to some facilities, the condition of the home and the values of recent comparable sales. You can count on Piscitelli Appraisal Service's appraisers to be ethical in assessing this information.
Myth: As properties appreciate by a certain percentage - in a robust economy - the houses within the same neighborhood are figured to increase by the same amount.
Reality: Any value an appraiser derives in regards to a specific house is always individualized, based on certain factors concluded from the information of comparable properties and other considerations within the property itself.
It doesn't matter if the economy is on the rise or declining.
Myth: The house's exterior is determinate of the expected price of the home; it is unnecessary to do an interior appraisal.
Reality: There are a multitude of different variables that show the value of a house; these factors include area, condition, improvements, amenities, and market trends.
Obviously, none of these factors can be derived just by examining the house from the outside.
Myth: Since you're the one providing the money for the appraisal report when applying for the loan to purchase or refinance your house, you own the produced appraisal.
Reality: The appraisal report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the document.
By the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be given it by their lending agency.
Myth: It doesn't mean anything to consumers what's in the appraisal so long as it satisfies the necessities of their lending company.
Reality: Only when home buyers examine a copy of their appraisal 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.
An appraisal can serve as a record for the future, as it contains an exorbitant amount of data - 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 area.
Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the value of a house during a sales transaction involving a lending company.
Reality: Appraisers can have many varied qualifications and designations which allow them to perform a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: An appraisal report 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 producing the report.
House inspectors will produce a report that will explain the condition of the property and its major components and possible damage.
