Myth: The value assessed in the appraisal should be equal to the market value.
Reality: Most provinces support the idea that the assessed value gives a clear indication of what the estimated market value is, but there are factors which are beyond the scope of the assessment, which can affect market value. If the appraiser is unaware of improvements that have been made to the home for example, or if comparable properties in the surrounding area have not been reassessed for a long time and do not reflect their current market value.

Myth: The assessed value determined by the appraisal will be different depending on whether it is performed for a buyer or a seller.
Reality: The assessed value determined by the appraisal will be the same no matter who asks for the services of the appraiser.  Professional appraisals are performed by objective impartial appraisers who have no personal interest in the outcome of the assessment.  It is this third party perspective that gives the assessment its value as it provides an unbiased view of the real estate value.

Myth: Market value reflects replacement cost.
Reality: The market value of real estate is based on the price that willing buyers and sellers might agree on in a real estate transaction for a piece of property.  Replacement cost is simply the dollar amount needed for reconstructing a property in-kind.

Myth: Appraisals are done using a formula to assess the value of a home.
Reality: Appraisal results are arrived at using a variety of resources that give a detailed picture of the value of a home.  Factors such as location, condition, size and the assessment of comparable  homes and properties are some of the criteria used in an appraisal. 

Myth: The percentage by which sales prices have risen in a given area should translate to an equal rise in value for individual property values in that area.
Reality: Market fluctuations are only one factor in determining a property’s value.  A rise in a property’s value can only be properly determined by specific detailed analysis of that property’s actual value based on all the factors and criteria that appraisals use. 

Myth: A property’s value is easily determined by looking at it from the exterior.
Reality: Property value is based on numerous factors, appearance being only a minor one.

Myth: The consumer that has paid for the appraisal owns the resulting appraisal report.
Reality: The appraisal itself is legally owned by the individual who has placed the appraisal order – typically a lender.  Normally the consumer can obtain a copy of the report by asking for one from the lender, at which time the lender requests in writing that the appraiser provide a copy to the consumer.

Myth: The consumer will not find the appraisal report of much interest or value as long as it has satisfied their lender.
Reality: The consumer should take the time to check the assessment and understand what conclusions it came to.  The appraisal itself provides detailed information on why the assessment arrived at the conclusions that it did.  The appraisal also acts as a valuable information resource regarding the property that can provide the consumer with much information they may need in future, such as the square footage, the legal descriptions of the property, information on the neighbourhood and comparable properties in the area. 

Myth: Appraisers only provide estimates for property values in real estate transactions that involve mortgages and lenders.
Reality: Qualified appraisers can provide estate planning services, aid in resolving disputes where property is involved, and help in situations where a review of zoning or tax assessments need to be reviewed.

Myth: An appraisal is a home inspection.
Reality: An appraisal is not the same as a home inspection.  Appraisals are used to determine the estimated value of a property based on numerous factors.  A home inspection is a detailed examination of the physical condition of a home.