It is possible that some people confuse the work of a real estate agent and believe that he also does the activities of an appraiser. It is therefore important to consider the variations in the real estate market between real estate agents and real estate appraisers.
Real estate agents and real estate appraisers play a fundamental role in the sale of a property. Although their activities may occasionally coincide, they often reach different conclusions about the same property. In this article, we talk about the differences between real estate agents and real estate appraisers.
What is a Real Estate Agent?
A real estate agent help clients to buy or sell their commercial or residential properties. These consultants generally work with real estate brokers, who are certified to manage a real estate agency. Some agents are also brokers but prefer to work only as agents, because they may not want to add responsibility and workload as a manager of a real estate agency. Those who work as an agent usually earn a commission for sale or for assisting customers in their purchase.
A real estate agent works closely with the client to determine what they want in a possible purchase or sale, and to know what budget they have. With the real estate crm Aidy, you can create notes with the preferences of your clients and have all the information at hand to keep track of all the details.
Also, the agent can coordinate with the mortgage to make sure that will be available for the purchase. In addition, the real estate consultant assist the leads in the market and look for the best price of a property. The agent accompanies the client in the closing process, helping them with the complicated paperwork and avoiding obstacles that may arise.
To legally represent your clients as a real estate advisor and accompany them in the purchase or sale of a property, you must be certified by the Association of Real Estate Professionals of your country. Being registered will allow you to offer more confidence to your customers and have a greater presence in the national directory.
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What is a Real Estate Appraiser?
To assess its value at the time of the sale or promotion, a real estate appraiser is responsible for evaluating the land. The appraiser personally inspects each property to gather the following details to determine its market value:
- Calculations and measures of the property
- Photographs of the entire property’s interior and exterior
- Information on the use of the property
- Information on the architectural quality of all buildings
- The characteristics of the property that may affect its value (such as a pipe in poor condition)
What Does a Real Estate Appraiser Do?
The appraiser also has to carefully analyze the circumstances of the existing market where the property is situated. It must include analysis of “comparisons”, or similar properties that have been sold in the area recently and that are close to the value of the property in question. The appraiser is also responsible for verifying any legal description of the property.
Many real estate appraisers review one property at a time, concentrating on only one case before proceeding with the next. Although they usually have offices in which they base their operations, they are usually on the street, inspecting properties.
Throughout the appraisal process, professionals keep a constant record of their observations and the data they have obtained, in order to verify and support the final estimated value.
Can Real Estate Agents Make Appraisals?
Real estate agents often make detailed estimations. The aim of these price comparison studies is to help sellers decide the amount buyers expect to pay for their specific property. Agents take into account many of the same considerations in the report as an appraiser, including recent sales in the area and the characteristics of the property that may encourage or discourage buyers.
Some real estate consultants are often not comfortable with providing detailed estimates offered by sellers. They may not have access to the properties in which customers are interested. Therefore, buyers will be inclined to hire a professional appraiser, especially if they rely on a mortgage to finance the purchase.
Finally, the difference between a real estate agent and a real estate appraiser is that while the agent can offer a valuation perspective to give a presumed appraisal of the property, only the appraiser can provide an official appraisal. Sellers are usually happy to work just with a real estate agent, but most buyers ultimately employ both. There may be communication between them, but the agent cannot attempt to influence the final evaluation.
Some professionals are certified as agents and appraisers, but they must engage in one activity at a time. They cannot represent a client and simultaneously perform an appraisal.
The Key Differences between Real Estate Agents and Real Estate Appraisers
Real estate advisors and real estate appraisers often gather and examine the same information, both search Multiple Listing Service to make comparisons. Appraisers have access to public information, but the distinction is not in the data they collect, but in the way they use it.
Real estate agents promise to represent the best interests of their clients. They want the best ad for their leads and they will use the market information they have obtained until the end.
Appraisers are not paid by commission, real estate appraiser salary is a fixed amount and do not acquire an interest in customer needs beyond providing an estimate of the purchase. In fact, they should clearly indicate that they are professionals providing their service and not advocates for buyers or customers.
Don’t Expect the Real Estate Appraiser to Do the Job of the Real Estate Agent
Real estate agents and appraisers must draw different conclusions when reviewing identical documents, since their priorities and experiences vary considerably depending on the form of contact with their customers. Both estimates are considered valuable, and both professionals play an important role in the buying and selling process.
As a real estate advisor, you should always be informed about the current value of the properties in the market. For this you can benefit from the service of an appraiser. The real estate crm Aidy can help you save a lot of information about your properties, in an organized and ready to use way.
With Aidy you can attach your evaluation documents to the real estate information. In addition, real estate software allows you to label properties as “Good price” or “High price”. This will help you to classify them to be available immediately, just by clicking on your real estate software Aidy.