Myth: Assessed value should always be the same as market value.
Reality: It is probable that Oklahoma, like most states, validates the idea 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 unaware of the improvement or other homes in the area have not been reassessed for quite a while, it may vary widely.
Myth: The buyer or the seller sometimes may have leverage in the value of the property depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the result of the appraisal report and should render his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Market value will be the same as replacement cost.
Reality: Without any influence from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular property.
The dollar amount required to rebuild a home is what shows the replacement cost.
Myth: There are certain methods that real estate appraisers use to show the opinion of value of a property, such as the price per square foot.
Reality: There are many different calculations that an appraiser will use to make a full analysis of every factor in consideration of the house, such as the size, location, condition, how close it is to undesirable facilities and the sales prices of recently sold comparable properties.
Myth: When the economy is strong and the sales prices of homes are found to be increasing by a certain percentage, the other homes in the proximity can be expected to increase based on that same percentage.
Reality: All appreciation of value is on a case-by-case basis, concluded by data on relevant considerations and the data of comparable houses.
This is true in excellent economic times as well as poor.
Myth: Just examining what the house looks like on the outside gives an idea of its value.
Reality: There are a number of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends.
An exterior inspection obviously can't provide all of the information required.
Myth: Because consumers fund appraisals when applying for loans to buy or refinance their home, they legally own their appraisal.
Reality: Legally, the appraisal report is owned by the lending agency unless the lender releases their interest in the report.
Consumers must be supplied with a copy of the appraisal report upon written request as per the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even concern themselves with what the report contains so long as their lending company is fine with the contents therein.
Reality: It is very important for home buyers to peruse a copy of their appraisal report so that they can double-check the accuracy of the document, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal 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 area.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a home during a sales transaction involving a lending company.
Reality: Appraisers can have many different qualifications and designations which allow them to provide a variety of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Reality: An appraisal does not serve the same purpose as an inspection.
The job of the appraiser is to find an opinion of value in the appraisal process and through writing the report.
The point of a home inspector is to determine the condition of the property and its main components, then create a report on their findings.
