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'.
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! :)
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".
I wish you well.
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?
Good luck, Dunes
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".
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.
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,
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"You get what you pay for", Dunes
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.
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 : (
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)
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.
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