Appraisal Basics
Common Appraisal Myths
By Carlos E. Larocca, Certified Residential Appraiser (Cert Res RD6469)4 min read
Common appraisal myths include the belief that appraisers work for the lender's interests, that renovation cost equals added value, that a clean house raises the number, and that assessed value reflects market value. Each is corrected below.
Myth: the appraiser works for the lender's desired number
Appraiser independence rules prohibit any party from influencing a value conclusion. The lender is the client on a mortgage assignment, but the appraiser's obligation is to an impartial opinion.
Myth: what I spent is what I gained
Cost and value are different. A $150,000 kitchen in a neighborhood where homes sell for $600,000 will not return its cost, because the market ceiling caps what buyers will pay.
Myth: assessed value is market value
County just value comes from mass-appraisal models and is frequently constrained by exemptions and caps. It is a tax figure, not a valuation of your specific property.
Myth: I can't order my own appraisal
Anyone can order an appraisal for private purposes such as estate planning, divorce, tax appeal, or pricing. Only mortgage appraisals must be ordered through the lender's channel.
Frequently asked questions
- Can a homeowner influence the appraised value?
- A homeowner can supply accurate information — permits, renovation records, and sales the appraiser may not have found — but cannot direct the conclusion.
- Do appraisals expire?
- The value is stated as of a specific effective date. Lenders commonly treat reports older than 120 days as needing an update, and any report becomes less reliable as the market moves.