Myth: The value that is ascertained by the appraiser will be equivalent to the market value.
Reality: It could be that West Virginia, like most states, validates the common myth that the assessed value equals the market value; however, this is not often the case.
Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when homes in the area have not been reassessed for an extended time.
Myth: The buyer or the seller may have leverage in the value of the home depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the result of the report and should complete services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Any time market value is determined, it should match the replacement cost of the property.
Reality: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under duress to buy or sell.
The dollar amount needed to rebuild a house is what constitutes the replacement cost.
Myth: Appraisers use a formula, like a certain price per square foot, to arrive at the value of a house.
Reality: There are many numerous ways that an appraiser will use to make a comprehensive analysis of every factor in consideration of the house, such as the size, location, condition, how close it is to certain facilities and the values of recently sold comparable properties.
Myth: When the economy is strong and the sales prices of homes are reported to be rising by a certain percentage, the other homes in the vicinity can be expected to rise based on that same percentage.
Reality: All increase of value is on a case-by-case basis, concluded by data on relevant considerations and the data of comparable houses.
It doesn't matter if the economy is doing well or declining.
Myth: You can commonly see what a house is worth simply by looking at the outside.
Reality: There are a multitude of different factors that conclude the value of a home; these factors include area, condition, improvements, amenities, and market trends.
As you can see, none of these variables can be found simply by viewing the property from the exterior.
Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance their property, they own their appraisal.
Reality: Unless a lender releases its interest in the report, it is legally owned by the lending agency that purchased the appraisal.
By the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be provided with one by their lending agency.
Myth: There's no point for home buyers to even worry about what the appraisal report contains so long as their lending agency is fine with the contents therein.
Reality: It is very important for home buyers to peruse a copy of their appraisal so that they can verify the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a wealth of data contained in an appraisal report that will probably be useful to the home buyer in the future, such as 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: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a property during a sales transaction involving a lender.
Reality: Appraisers can have many different qualifications and designations which allow them to perform 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: You don't have to get an appraisal if you order a home inspection.
Reality: An appraisal report does not serve the same purpose as an inspection.
The appraiser decides upon an opinion of value in the appraisal process and resulting report.
The task of a home inspector is to determine the condition of the property and its main components, then produce a report on their conclusions.
