Myth: Market value should be equivocal to the assessed value of the property.
Reality: It could be that Colorado, 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.
At times when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Fort Collins have not been reassessed for years or more, it may vary widely.
Myth: Depending on whether the appraisal is done for the buyer or the seller, the cost of the house will vary.
Reality: The value of the home does not affect the pay of the appraiser; because of this, the appraiser has no preconceived interest in the value of the home. What this means is he will complete his job with impartiality and objectivity regardless of for whom the appraisal is conducted.
Myth: The replacement value of the house will be on par with the market value.
Reality: Without any suggestion from any outside parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular house.
The replacement cost is the dollar amount required to reconstruct a house in-kind.
Myth: There are certain ways that real estate appraisers use to determine the value of a home, like the price per square foot.
Reality: An appraisal is an amalgamation of information concluded from the house's size, location, proximity to some facilities, the condition of the home and the values of recent comparable sales. You can depend on Colorado Appraisal Services's appraisers to be professional in assessing this information.
Myth: When the economy is strong and the sales prices of homes are found to be rising by a certain percentage, the other properties in the vicinity can be expected to rise based on that same percentage.
Reality: An increase in value of a specific house must be concluded on a case-by-case basis, factoring in information on comparable properties and other relevant considerations.
This is true in excellent economic times as well as poor.
Myth: The property's exterior is determinate of the actual value of the house; there is no need to do an interior appraisal.
Reality: House value is concluded by a multitude of factors, including - but not limited to - area, condition, improvements, amenities, and market trends.
An outside-only inspection obviously can't provide all of the information required.
Myth: Considering that the consumer is the person who puts up the capital to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Reality: Unless a lending agency releases its interest in the report, it is legally owned by the lending agency that ordered the appraisal.
However, consumers have to be provided with a copy of the appraisal report upon written request, under the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the report so long as it satisfies the requirements of their lending agency.
Reality: It is almost imperative for home buyers to read a copy of their appraisal so that they can verify the accuracy of the document, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal report makes an excellent record for future reference, filled with helpful and often-revealing 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: The only reason someone would hire an appraiser is if a home needs its value assessed in a lender-based sales transaction.
Reality: Based upon their qualifications and designations, appraisers can and will perform 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 no different than a home inspection.
Reality: An appraisal does not serve the same purpose as an inspection.
An appraiser forms an opinion of value in the appraisal process and resulting appraisal report.
A home inspector determines the condition of the house and its main components and reports these findings.