Myth: An appraisal is the same as a home inspection.
Reality: An appraisal does not serve the same purpose as an inspection. The appraiser forms an opinion of the value in
the appraisal process and resulting report. A home inspector determines the condition of the home and its major components and reports these findings.
Myth: When consumers pay for an appraisal when applying for loans to purchase or refinance
real estate, they own the appraisal.
Reality: The appraisal is legally owned by the lender - unless the lender "releases its interest"
in the document. However, consumers must be given a copy of the appraisal report from the lender.
Myth: Appraisers use a formula, such as specific price per square foot, to figure out the value of a home.
Reality: Appraisers make a detailed analysis of all factors pertaining to the value of a home including its location,
condition, size, proximity to facilities and recent sale prices of comparable properties.
Myth: When the sale prices of homes in a given area are reported to be rising by a particular percentage - the value of individual
properties in the area can be expected to appreciate by that same percentage.
Reality: Value appreciation of a specific property must be determined on an individualized basis, factoring in data on comparable
properties and other relevant considerations.