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I Want Homes, Home Buyer in 03079

Should I hire a real estate appraiser or realtor to appraise a property?

Asked by I Want Homes, 03079 Sat Nov 21, 2009

I want to get a true appraisal of a property. DON'T they BOTH have access to mls? Can't they both give comps, value, town information? why would I hire an agent over appraiser or appraiser over an agent? Do they both have equal traning?

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Alan May’s answer
a couple of things:

1) if you "need" an appraisal, the only one qualified to do that is a home appraiser. Period.

2) if you want to know what the market value of a property is, use a Realtor. They are more in touch with what properties will sell for, in what condition and on what block, or in what school district of a specific area. Realtors do not give appraisals, they give market evaluations.

It might be important to note (or perhaps not), that the Realtor has probably been inside the homes that s/he's using for comps. And the likelihood is that the appraiser has not.

and Mack is correct... neither of us will give you a "guarantee", because we can't. But the Realtor is prepared to back up his "opinion" by putting your house on the market, at his recommended price, and riding that wave.

... and my opinion is worth exactly what you paid for it. nuthin'.
1 vote Thank Flag Link Sun Nov 22, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Hire an appraiser if you will need the information for legal reasons, as a court doesn't usually recognize a realtor's cma. Hire an agent if you simply want an idea of what your home is worth on the open market. You will pay the appraiser several hundred dollars for his opinion.........agents are free, and worth every penny of it! haha

Had an appraiser come to appraise a listing of mine...appraiser was not from the area. He picked my brain (whatr's left of it anyway) for comps and area information He had no idea of the nuances in the town, how the same house a few blocks over would sell for more.....that's where I came in, to help him fine tune the numbers. It wasn't the first time, nor will it be the last time I have helped an appraiser.

Bottom line is, ........pricing a home is not an exact science......too much gray area, and a lot of subjective reasoning.

I almost sat on a jury in which the case had to do with eminent domain (city was taking over a bulding - it was a done deal, the only thing to be decided in the trial was how much the city would pay the owner (pretty exciting trial - all 3 witnesses were appraisers! ).......anyway, I was the first person to be let go on the jury! They didn't want me!

Ironic, isn't it? I was probably the only person who wouldn't fall asleep, and would understand what the appraisers were talking about.
Ok..so.... Guess what..........the appraiser for the city came in with a low figure........and (gee what a surprise) the 2 appraisers for the owner came in 15% higher! So much for paid opinions!

Hey Dunes - I am worth every penny that you won't pay for my opinion! so there! :)
1 vote Thank Flag Link Sat Nov 21, 2009
Alan has a good humble opinion - a lot better than Kathleen's opinion of an Appraiser's "formula of price per square foot". Appraised value is not determined by any "formula" or "price per square foot" and can be verified by reading USPAP (Uniform Standards of Professional Appraisal Practice) regulations - http://www.appraisalfoundation.org/s_appraisal/sec.asp?CID=3… -

The definition of "price" determined by a CMA is - the amount of money, etc. asked or paid for something: cost. The definition of "value" determined by an Appraisal is - the worth of a thing in money or goods; having intrinsic worth; to estimate the value of; appraise.

There are many types of appraised "value" depending on the purpose and use for the need, and when it comes time to "name that tune", the appraised "value" of an appraisal can be better justified and will hold more credibility than a CMA and its "price".
1 vote Thank Flag Link Sat Nov 21, 2009
Can't speak for your state, however in the state of Florida you are good to go with an certified appraiser. That appraisal will stand verses a CMA Comparable Market Analysis from an agent. Why, because lender's recognize a certified appraisal. It is woth every bit.

I wish you well.
1 vote Thank Flag Link Sat Nov 21, 2009
No spam please! When in doubt, please refer to our Community Guidelines.

I Want Homes....You'll just have to decide who's expertise you think will give you the most likely chance of getting something near what Banks will determine is the value for the loans they are considering on that property.....They will only loan based on what an Appraiser decides so who has the best chance of coming closest to that number?

Your Decision

Good luck, Dunes
1 vote Thank Flag Link Sat Nov 21, 2009
If you wan a true appraisal of a property you should hire an appraiser.

Yes they both have access to mls, and both can give comps.

NO - they both DO NOT have equal training.
Realtors, or Agents, are licensed to SELL real estate. Appraisers are licensed to APPRAISE real estate.
Major difference between the two types of licenses and training -

To obtain a real estate sales license one must be a US Citizen or legally able to work in the US, be at least 18 years of age, minimum education of High School Diploma or GED, complete the required 90 hours real estate classes (usually 6 weeks), pass the required State exam, pay the appropriate fees, and have a Broker to be affiliated with (hang their license).

To obtain a real estate appraisal license one must be a US Citizen or legally able to work in the US, minimum age 18 years, minimum educational requirement of an Associates Degree, complete the required 150 hours appraisal/USPAP classes (usually 8 weeks), complete 2,000 hours of supervised training in a minimum of 18 months or longer, submit training logs and sample reports (chosen by the State Board) for Board approval and permission to take the State Exam, pass the required State exam, pay the appropriate fees.

Agents provide an estimated selling or purchase "PRICE" - Appriasers provide an estimated market or appraised "VALUE".
1 vote Thank Flag Link Sat Nov 21, 2009
The operative word in your question is "appraisal". Only a licensed appraiser can perform an appraisal. Realtors call that same activity Opinion of Value or Competitive market Analysis and are/should be careful not to suggest their service is an appraisal.

True, Realtors and appraisers have the same information available, but an appraisal uses more scientific data to determine a value than most Realtors would use.
0 votes Thank Flag Link Wed Nov 5, 2014
I think that the best option is probably to get an appraiser. I have heard that they are usually great at getting the job done effectively. I am about to sell my home and want to get it appraised before I do so, and I think I will get an appraiser. I would ask people in your area that have gotten appraisals recently to see what they've done and then determine which would be better. http://www.appraisalofficeaspen.com
0 votes Thank Flag Link Wed Oct 29, 2014
Appraisers are the only individuals authorized to give you an appraisal. Realtors can provide an opinion of value. Yes, both have access to the same sold data, but appraisers are experienced at adding and subtracting value variances and officially quantify their results.
0 votes Thank Flag Link Wed May 14, 2014
You should always get a Certified Appraiser to get true value of a property. Would you see a foot doctor to for brain surgery? Go with the expert in the desired field. It may cost more money up front, but the long term benefits will be to your advantage.
0 votes Thank Flag Link Sun Mar 9, 2014
Hi- This is an old question, but I'll throw my 2 cents in.
It is almost always worth the $300- $350 to hire a certified appraiser to give you a more accurate, true market value of a property that you are interested in.
Don't try to base a purchase or an investment on a FREE CMA from some realtor.
Maybe, you might consider paying for a BPO (broker price opinion) from a RE broker- which might run you $75 or $100. That's a little better than a free CMA. It all comes down to the time that a realtor will put into it.
Yes, they both have MLS access, but an appraisal will almost always be more accurate.
If I can be of any help, please let me know. Good luck,
Ken L.
0 votes Thank Flag Link Sun May 30, 2010
Debbie

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"You get what you pay for", Dunes
0 votes Thank Flag Link Sun Nov 22, 2009
Ha.........Just checked out the link Dunes !!!!...................I want the FREE JC Penny snowgtobe!!!!!!!!! I want it NOW!

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0 votes Thank Flag Link Sun Nov 22, 2009
Now, Mr. Dunes, when it comes to a "zestimate" you truly DO get what you pay for!
0 votes Thank Flag Link Sun Nov 22, 2009
Don't forget to get your free Zestimate and here's more free stuff.....http://www.totallyfreestuff.com/

"You get what you pay for"
Dunes
0 votes Thank Flag Link Sun Nov 22, 2009
You should hire a real estate appraiser to "appraise" a property. They are the only people qualified to give you a "true appraisal."
Real estate agents typically give you a range where they think the property is likely to sell; an appraisal will give you a very precise (to the dollar) opinion of value.
At the end of the story, neither the appraiser nor the real estate agent will guarantee that their opinion will be ratified by the marketplace.
0 votes Thank Flag Link Sun Nov 22, 2009
I'm sorry Debbie but all those Agents discussing Commissions convinced me "You get what you pay for"

If you pay nothing for an Agent to do a CMA then it must be worth nothing or "You get what you pay for" can't always be true. lol

Or is someone suggesting you could pay nothing or less than an appraiser and get something that has as much value because then I could pay a lesser commission and......

Debbie...My opinions are also worth what people pay for them.......Hey wait a minute they pay me nothing so if "You get what you pay for" is true my opinions are worth.....All those emails from Agents were true my opinions have no value aaaaahhhhhhhhhh

The guy with the opinions of no value, Dunes : (
0 votes Thank Flag Link Sat Nov 21, 2009
What about that fact many agents state when discussing Commissions, let's see what was it?

Oh yeah, "You get what you pay for"

Does that only apply to Commissions? ; )
0 votes Thank Flag Link Sat Nov 21, 2009
It depends on the appraiser and it depends on the agent. How well does that person know the area? I've listed properties that have had 4 different appraisals done on them within a months time and they were all different. I've had $15k credits for condition given on some homes over others and the lesser valued home actually had more upgrades. 99% of the appraisers I know are well trained, completely professional and do a great job - but - it is an opinion of value. Agents also come up with different market values. I work with many agents who are both realtors and appraisers and we discuss a lot of home values together. Find the best of both worlds..find an appraiser that is also an agent with working knowledge of your area or work with both if that will make you feel comfortable. I don't think you will find a 'true' appraisal since you will likely find a different value given for upgrades, square feet, one garage vs two - whatever can be given a perceived value will simply be up to that persons judgement. At the end of the day, what matters to a seller is the price a buyer will pay for the home, not the value that the seller or any one else puts on the home.
0 votes Thank Flag Link Sat Nov 21, 2009
In my humble opinion (and keep in mind I may be biased... I'm a Realtor).

I have found, time after time, that while appraisers may have the ear of the bank (as to what they will allow the bank to lend), Realtors have a better idea of what a property is really "worth" on the open market... and what it will likely "sell" for on the open market.

Yes, they both have access to the MLS, but the appraiser isn't likely to have his bluff called, and be asked to "name that tune"... by selling that house! A Realtor is always subject to be called on the floor to sell that house!

And the best part (as far as you're concerned)... the Realtor doesn't charge you a dime. You don't actually "hire" a Realtor for a CMA (Competitive Market Analysis)... typically you should call 3 agents... and ask they to give you their evaluations. I guarantee you that you'll get three entirely different prices... but you can then build a consensus with those prices.

(btw... 3 different appraisers would likely come up with 3 different prices too)
0 votes Thank Flag Link Sat Nov 21, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
As agents we are to call what we do a Comparative Market Analysis that is we find similar homes in that or a nearby similar location and see what they recently sold for. We add and subtract for the differences and come up with a number that is the market price. Will it get that - it depends. Number of homes that are similar on the market at the same time, condition, how well they show,perhaps time of year - financing incentive, tax credit - the number of factors is substantial.
Appraiser come up with their own formula of price per square foot and tweek with type of construction, condition, etc.........they are not concerned with financing etc
Are you trying to get a selling price? Are you working with an agent? Are you looking at something you are considering to buy?
My answer would depend on yours.
Web Reference: http://topbrainerdagent.com
0 votes Thank Flag Link Sat Nov 21, 2009
An appraise works for mortgage companies and are kinda the final say when it comes to the property's worth.

Can a realtor effectively price a home? yes...but an appraiser might give some insight that a realtor might not. for example i had a property where i know it was worth $5-10k more but the appraisal came in less and well its either deal or no deal as they say


Sean Dawes
Web Reference: http://www.SeanDawes.com
0 votes Thank Flag Link Sat Nov 21, 2009
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