Do Real Estate Agents do Appraisals? The Role of an Appraiser in the Process
Tuesday Apr 19th, 2022
When you are buying or selling a home, one of the most important aspects of the process is getting an accurate appraisal. An appraisal is an estimate of the market value of a property, and it is used to determine the sale price. So, who performs appraisals? Do real estate agents do appraisals? In this blog post, we will explore the role of an appraiser in the real estate process, and we will discuss why it is important to get an accurate appraisal.
What is an appraisal and why is it important in the real estate process?
An appraisal is a professional estimate of a property's market value. It is important in the real estate process because it gives buyers and sellers an idea of what a property is worth. An appraisal can also help determine whether a property is overpriced or under priced.
Many people think that real estate agents do appraisals, but this is not always the case. Appraisers are typically independent contractors who are hired by a mortgage lender to appraise a property. Having said that, the real estate agent may work with the appraiser to get a better understanding of the property and its value.
It is also important to note that an appraisal is not a guarantee of the sale price. The final price of a property depends on many factors, including the condition of the property, market conditions, and negotiating skills of the buyer and seller.
All in all, an appraisal is just one part of the real estate process and should not be relied on exclusively to determine a property's value.
Who performs appraisals and what is their role in the process?
The person who performs appraisals is called an appraiser. They are responsible for estimating the value of a property. The appraiser's role in the real estate transaction process is to provide an unbiased estimate of the value of the property to all parties involved in the transaction. This estimate can be used to inform negotiations and help to ensure that everyone is on the same page with regard to the property's value.
An appraiser is typically not affiliated with any of the parties involved in the transaction. They are hired by the buyer, seller, or lender to provide an impartial estimate of a property's value. The appraisal report is then used as evidence in case either party decides to dispute the sale price after the fact.
It's important to note that an appraiser's valuation should not be confused with a home inspector's report. A home inspector will assess a property for safety and structural issues, while an appraiser looks at the property from a financial standpoint.
How can you ensure that you get an accurate appraisal when buying or selling a home?
The appraisal process is governed by the Canadian Uniform Standards of Professional Appraisal Practice, which is published by CUSPAP and revised on a frequent basis (every few years).
It's reassuring that these standards prohibit any relationships between appraisers and buyers or sellers. They also require all appraisers to disclose their qualifications and possible conflicts. All aspects of valuation are clearly defined, including criteria such as market information and comparable sales prices.
Do Real Estate Agents Do Appraisals?
A question that is often asked in the home buying process is, "Do realtors do appraisals?" The simple answer is no. You must hire an outside appraisal company to come in and assess your property's value. If you are selling a property, this company will estimate the property's fair market value which sets the price at which it should be sold (or higher). It's important that the appraiser comes in unbiased with all factors leading up to the sale being absent. They can't even enter your home with you there controlling what they see or touch because it would create bias.
What are some of the common challenges that appraisers face during the appraisal process?
One of the common challenges that appraisers face during the appraisal process is improper communication from the real estate agent. This can lead to a number of different issues, such as an inaccurate appraisal or an appraisal that is delivered late. In order to avoid these challenges, it is important for both the appraiser and the real estate agent to communicate effectively and efficiently.
Another common challenge that appraisers face is inaccurate information from the client. This can lead to an inaccurate appraisal, which can be costly for both the client and the appraiser. In order to avoid this challenge, it is important for the appraiser to collect accurate information from the client.
All in all, although a real estate agent doesn't directly perform the appraisal of a home, they still need to effectively communicate with a third-party appraiser to ensure that the appraisal is delivered effectively. Having said that if you need help with buying, selling or appraising your home, contact us today and we would be happy to help!