Myth: The value that is ascertained by the appraiser must be the same as the market value.
Reality: It could be that Georgia, like most states, supports the idea that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when properties in the vicinity have not been reassessed for an extended period of time.
Myth: Depending on if the appraisal is done for the buyer or the seller, the appraised value of the house will vary.
Reality: There is no real interest on the part of the appraiser in the outcome of the report, therefore he will conduct his work with impartiality and independence, no matter of for whom the appraisal is ordered.
Myth: The replacement cost of the house should be on par with the market value.
Reality: Without any pressure from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific home. Replacement value is the dollar amount necessary to rebuild a home in-kind.
Myth: Specific methods, such as the price per square foot of the property, are what appraisers use to arrive at the value of a house.
Reality: An appraisal is an assertion of data concluded from the property's size, location, proximity to undesirable facilities, the condition of the property and the values of recent comparable sales. You can depend on Gregory James Company, Inc.'s appraisers to be ethical in assessing this information.
Myth: In a powerful economy - when the prices of properties in a given region are reported to be increasing by a particular percentage - the values of individual properties in the proximity can be expected to rise by that same percentage.
Reality: All increase of value is on a one-on-one basis, found by data on relevant conditions and the data of comparable houses. This is true in good economic times as well as poor.
Myth: The property's exterior is determinate of the expected price of the house; there is no need to do an interior appraisal.
Reality: To find a definite value beyond all doubt, an appraiser must inspect the house on a variety of factors based on location, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the information required.
Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance their property, they legally own their appraisal report.
Reality: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending agency that ordered the appraisal. Consumers have to be given a version of the document through request because of the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their appraisal 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 report, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, containing a great deal 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 vicinity.
Myth: Appraisals are ordered only to assess house values in home sales involving mortgage-lending transactions.
Reality: Depending upon their qualifications and designations, appraisers can and may provide a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal report is the same as a home inspection.
Reality: An appraisal report does not fulfill the same purpose as an inspection. The purpose of an appraisal report is to find an opinion of market value during the appraisal process and the production of the appraisal report. House inspectors will create a report that will determine the condition of the house and its major components and possible damage.
