As important as an accurate property valuation is to all parties in a real estate transaction, many people don't have a full understanding of what they are, or what real estate appraisers actually do. To help clear up the confusion, Augustine, Inc., providers of expert valuation services throughout Ohio, Kentucky, and Indiana, are here to dispel some common myths and misconceptions.
The assessed value of a property is the same as the market value.
While this is often true, there are situations in which the two values may differ. For example, if an appraiser is unaware of extensive interior remodeling or if adjacent properties do not have current appraisals, then the appraised value may not reflect market value.
The appraised price varies depending upon who hired the appraiser.
Actually, property appraisers are independent authorities with no incentive to tilt the appraisal in any party's favor. They should always be objective and impartial.
The market value of a property equals replacement cost.
These two values may often be widely different. Depending on housing prices in your area, the amount a buyer is willing to pay may be much higher or lower than the cost of building a new structure.
Appraisals and home inspections are the same thing.
In fact, the two actually have little to do with one another. An appraisal is an estimation of a property's value, while a home inspection is a report on the general condition of a building.
To learn more, visit Augustine, Inc. online, or just call (513) 481-6800 today.