Myth: Assessed (taxed) value should be same as market value.
Fact: The aim in Kentucky is that the assessed value of a property should approximate the market value. But this often is not the case, and many reasons to have a justifiable difference. If you want assistance in fighting the assessed value of your home, call Neil Blumberg at 502/439-2826 or email him at neil@neil4realty.com.

Myth: Market value should be the same as replacement cost.
Fact: Market value is based on what a willing buyer likely would pay a willing seller for a particular property, in an arms length transaction. Replacement cost is the amount needed to rebuild a property from scratch.

Myth: Appraisers and Realtors use a formula, such as a specific price per square foot, to figure out the value of your home.
Fact: A detailed analysis of all factors relatinging to the value of your home (including its location, condition, size, proximity to facilities and recent sale prices of comparable properties) is done to arrive at home value.

Myth: When the sales prices of homes in a given area are reported to be rising or falling by a particular percentage, the value of your individual propery in that area can be expected to appreciate or depreciate by that same percentage.
Fact: The appreciation or depreciation of a your property will be determined on its own merits, factoring in data on comparable properties and other relevant issues. 

Myth: Because you payed for the appraisal when applying for your loan to purchase or refinance, you now own the appraisal.
Reality: The appraisal report is owned by the lender, unless the lender "releases its interest" in it. The results of the appraisal however, are owned by the appraiser and are that appraiser's opinion of the market value.  Consumers must be given a copy of the appraisal report, upon written request, under the Equal Credit Opportunity Act.

Myth: You need not be concerned with what is in the appraisal document so long as your lending institution is satisfied.
Reality: You must read the appraisal to double-check its accuracy and question the result. It contains vital information such as the square footage of the house - have your realtor explain the 10% rule for GLAR contracts of purchase. Also, it makes a valuable record for future reference, containing useful information, such as the legal and physical description of the property, 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: 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 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. Ask your realtor about the difference between an FHA appraisal and a standard appraisal, or call Neil Blumberg at 502/439-2826 or email him at neil@neil4realty.com.