Myth: Assessed value will always equate to market value.

Fact: It is probable that Arizona, like most states, validates the idea that the assessed value equals the market value; however, this is not always true. Often when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the neighborhood have not been reassessed for quite a while, it may vary wildly.

Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the value of the home will vary.

Fact: There is no vested interest on the part of the appraiser in the result of the appraisal report, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is conducted.

Myth: The replacement cost of the home should be is on par with the market value.

Fact: The way market value is arrived at is based on what a buyer would likely pay a willing seller for a property without being under duress from any external party to purchase or sell. The replacement cost is the dollar amount necessary to rebuild a house in-kind.

Myth: There are certain ways that appraisers use to show the cost of a home, such as the price per square foot.

Fact: An appraisal is a collection of data concluded from the house's size, location, proximity to specific facilities, the condition of the home and the worth of recent comparable sales. You can count on Phoenix Valuations, LLC's appraisers to be forthright in assessing this information.

Myth: In a powerful economy - when the costs of properties in a given county are reported to be appreciating by a particular percentage - the worth of individual houses in the area can be expected to appreciate by that same percentage.

Fact: Any price at which an appraiser arrives concerning a particular property is always individualized, based on certain factors concluded from the information of comparable properties and other specifications within the home itself. This is true in excellent economic times as well as poor.

Myth: You can often tell what a house is worth simply by looking at the exterior.

Fact: There are a multitude of different factors that conclude property value; these factors include location, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the information necessary.

Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance their property, they own their appraisal.

Fact: The document is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the document. Due the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be provided with it by their lending company.

Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the necessities of their lending company.

Fact: A consumer should definitely read through their appraisal; there may be some questions or some concerns with the accuracy of the analysis that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, containing an incredible amount of 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 proximity.

Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the cost of a home during a sales transaction involving a lender.

Fact: Ordering an appraisal 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 report is no different than a home inspection report.

Fact: An appraisal does not serve the same purpose as an inspection. The purpose of an appraisal report is to conclude upon an opinion of fair market value during the appraisal process and the completion of the appraisal report. The point of a home inspector is to assess the condition of the house and its main components, then write a report on these inspection.