Myth: The value that is assessed by the appraiser is required to be the same as the market value.
Reality: It is possible that Utah, like most states, validates the common myth that the assessed value is the same as the market value; however, this is not often the case.
There are times when interior remodeling has occurred and the assessor is not aware of the improvement or other houses in the neighborhood have not been reassessed for years or more, it may vary widely.
Myth: Depending on if the appraisal is ordered for the buyer or the seller, the cost of the home will vary.
Reality: The appraiser has no vested interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement cost of the house will be on par with the market value.
Reality: The way market value is derived is based on what a buyer would likely pay a willing seller for a property without being under duress from any external group to buy or sell.
The replacement cost is the dollar amount necessary to reconstruct a house in-kind.
Myth: Certain formulae, such as the price per square foot, are what appraisers use to arrive at the value of a home.
Reality: Appraisers complete a comprehensive analysis of all factors pertaining to the value of a home, including its location, condition, size, proximity to facilities and recent values of comparable homes.
Myth: In a powerful economy - when the sales prices of properties in a given neighborhood are reported to be appreciating by a certain percentage - the values of individual homes in the area can be expected to rise by that same percentage.
Reality: An increase in value of a specific house has to be concluded on an individualized basis, factoring in information on comparable houses and other relevant elements.
It makes no difference if the economy is strong or bad.
Myth: You can usually find what a home is worth simply by looking at the outside.
Reality: Property value is determined by a number of factors, including location, condition, improvements, amenities, and market trends.
There's no possible way to get all of this information from just viewing the house from the outside.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their house, they own their appraisal report.
Reality: Legally, the document is owned by the lending company unless the lender releases their interest in the appraisal.
However, consumers must be supplied with a copy of the appraisal report upon written request, under the Equal Credit Opportunity Act.
Myth: There's no point for home buyers to even care about what the report contains so long as their lender is satisfied.
Reality: Only when consumers look over a copy of their appraisal report can they double-check its accuracy and know if they should ask questions. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the report makes an excellent record for future reference, filled with 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 hire an appraiser unless you are trying to get an estimate of the value of a house during a sales transaction involving a lender.
Reality: Based upon their qualifications and designations, appraisers can and often do perform a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't have to get an appraisal if you have had a home inspection.
Reality: An appraisal does not serve the same purpose as an inspection report.
An appraiser concludes on an opinion of value in the appraisal process and resulting document.
House inspectors will produce a report that will explain the condition of the property and its major components and possible damage.
