Do Realtors Do Appraisals? Understanding the Role of Realtors in Property Valuation
- Realtor vs Appraiser: What’s the Difference?
- When Should You Contact a Realtor for Appraisal Assistance?
- What Does the Home Appraisal Process Involve?
- Why Realtors Don’t Do Appraisals: Understanding Legal Boundaries
- How Realtors and Appraisers Work Together
Realtor vs Appraiser: What’s the Difference?
When it comes to buying or selling property, there are many terms and processes that might be confusing. One common question people have is whether realtors do appraisals. While both realtors and appraisers are involved in the home buying process, their roles are very different. Let’s break it down.
Realtors are licensed professionals who help clients buy, sell, or rent properties. They provide market expertise, assist in pricing a property, and negotiate deals. Appraisers, on the other hand, are licensed professionals whose job is to determine the market value of a property based on its condition, location, and comparable properties in the area.
When Should You Contact a Realtor for Appraisal Assistance?
While realtors cannot perform official appraisals, they can provide a Comparative Market Analysis (CMA). A CMA is an estimate of a property's value based on the sale prices of similar properties in the same area. This can give you a general idea of what your property might sell for.
If you are looking to sell your home and want to know a competitive listing price, a realtor’s CMA can be invaluable. However, if you’re applying for a mortgage or need an official valuation for insurance purposes, you’ll need to hire a certified appraiser.
What Does the Home Appraisal Process Involve?
In the home buying and selling process, appraisals are crucial for ensuring that the property’s value aligns with the agreed-upon price. Here’s a brief overview of the appraisal process:
- Step 1: A licensed appraiser is hired by the lender (if you are buying) or the homeowner (if you are refinancing).
- Step 2: The appraiser inspects the property, assessing its condition, size, age, and location.
- Step 3: The appraiser compares the property to similar homes that have sold recently in the same area.
- Step 4: The appraiser provides a final report with the property’s value, which is submitted to the lender or homeowner.
Realtors may be involved in the process by providing advice on how to present the property or what changes could increase the home’s value, but they do not conduct the official appraisal.
Why Realtors Don’t Do Appraisals: Understanding Legal Boundaries
In many places, there are strict legal and ethical boundaries when it comes to who can perform appraisals. Realtors are generally prohibited from conducting appraisals due to potential conflicts of interest. If a realtor were to perform an appraisal, it could influence the outcome of the sale or lead to biases that could affect the transaction.
For this reason, licensed appraisers, who follow specific guidelines and regulations, are hired to provide an objective evaluation of the property’s value. Realtors may provide input and market knowledge, but they cannot conduct official appraisals.
How Realtors and Appraisers Work Together
While realtors cannot perform appraisals, they can work closely with appraisers to ensure that the valuation is accurate. Realtors may provide insights into the property’s condition or market trends, which can help the appraiser make a more informed decision. Appraisers, in turn, can help realtors understand the current market value of a property, ensuring that it is priced correctly for sale.
When buying or selling a home, it’s important to understand the roles of both realtors and appraisers. Realtors can guide you through the process, provide market insights, and help you price your home. However, for an official home appraisal, a licensed appraiser is required.
