Myth: Assessed value generally will equate market value.
Reality: It could be that Georgia, like most states, validates the idea that the assessed value is the same as the market value; however, this is not always true.
Examples include when interior reconstruction has occurred and the assessor has not seen the improvements, or when homes in the area have not been reassessed for an prolonged period of time.
Myth: Depending on whether the appraisal is produced for the buyer or the seller, the cost of the house will vary.
Reality: The appraiser has no vested interest in the result of the appraisal and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Market value will equate to replacement cost.
Reality: The way market value is derived is based on what a home buyer would be willing to pay a willing seller for a house without being under duress from any external group to buy or sell.
Replacement value is the dollar amount needed to rebuild a home in-kind.
Myth: Certain formulae, such as the price per square foot, are the ways appraisers use to come to the value of a home.
Reality: An appraisal is an amalgamation of information based on the home's size, location, proximity to certain facilities, the condition of the property and the values of recent comparable sales. You can depend on Brumley Appraisal Services, Inc.'s staff to be forthright in assessing this data.
Myth: As houses appreciate by a specific percentage - in a strong economy - the houses nearby are expected to increase by the same amount.
Reality: An increase in value of a specific property has to be determined on a case-by-case basis, factoring in data on comparable homes and other relevant elements.
It makes no difference whether the economy is strong or bad.
Myth: Just seeing what the house looks like on the outside gives an idea of its value.
Reality: To conclude a solid value beyond all doubt, an appraiser must assess the property on a variety of factors based on location, condition, improvements, amenities, and market trends.
There's no possible way to get all of this information from simply inspecting the home from the outside.
Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to purchase or refinance real estate, you own the provided appraisal.
Reality: The appraisal is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal report.
Home buyers must be given a copy of the document through request because of the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the appraisal so long as it satisfies the necessities of their lender.
Reality: Only when consumers read a copy of their appraisal can they verify 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 appraisal report makes a valuable 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 area.
Myth: Appraisers are hired only to estimate building values in home sales involving mortgage-lending deals.
Reality: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is the same as a home inspection.
Reality: A home inspection report serves a completely different purpose than an appraisal.
The function of an appraisal is to arrive at an opinion of market value during the appraisal process and the production of the appraisal report.
A home inspector analyzes the condition of the building and its major components and reports their findings.
