Myth: Assessed value will always be equal to market value.
Reality: It is possible that Illinois, 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.
Often when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the area have not been reassessed for years or more, it may vary widely.
Myth: The value of a property will be different depending upon if the appraisal is provided for the buyer or the seller.
Reality: The price of the property does not affect the payment of the appraiser; as a result, the appraiser has no personal interest in the price of the house. Obviously, he will provide services with impartiality and independence regardless of for whom the appraisal is created.
Myth: The replacement cost of the home will be on par with the market value.
Reality: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under pressure to buy or sell.
The dollar amount necessary to reconstruct a house is what forms the replacement cost.
Myth: Specific formulae, like the price per square foot, are what appraisers use to determine the value of a home.
Reality: An appraisal report is a collection of information based on the property's size, location, proximity to certain facilities, the condition of the property and the values of recent comparable sales. You can count on Zim Appraisals's staff to be ethical in assessing this information.
Myth: As houses appreciate by a certain percentage - in a robust economic state - the houses in proximity are expected to increase by the same amount.
Reality: Any value an appraiser reports in regards to a specific home is always individualized, based on certain factors derived from the information of comparable houses and other specifications within the home itself.
It makes no difference whether the economy is strong or terrible.
Myth: You can commonly find what a property is worth simply by looking at the outside.
Reality: House value is concluded by a number of factors, including - but not limited to - area, condition, improvements, amenities, and market trends.
There's no real way to get all of this information from simply viewing the property from the outside.
Myth: Since you're the one paying for the appraisal report when applying for the loan to buy or refinance your house, you own the ordered appraisal.
Reality: The document is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document.
Consumers must be given a version of the document upon written request because of the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even worry about what the appraisal contains so long as their lending institution is satisfied.
Reality: It is a very good idea for home buyers to peruse a copy of their report so that they can verify the accuracy of the document, in case they need to question its veracity. 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, comprised of helpful and often-revealing information - including 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 hire an appraiser unless you are trying to get an estimate of the value of a property during a sales transaction involving a lending agency.
Reality: Depending upon their qualifications and designations, appraisers can and often do perform a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is the same as a home inspection report.
Reality: A home inspection report has a completely different purpose than an appraisal.
The purpose of the appraiser is to come to an opinion of value in the appraisal process and through writing the report.
A home inspector assesses the condition of the house and its main components and reports their findings.
