13 Sep What is the difference between a real estate agent and an appraiser?

When you decide to sell your home or are looking to buy a new one, you will come across the terms “appraiser” and “real estate agent.” Not everyone knows the difference between these roles, and some even believe they do the same thing. In this article, we will explain who these individuals are and outline the key differences.

What is a Real Estate Agent?

Real estate agents help clients buy or sell commercial or residential properties. These agents typically work for a brokerage, which is licensed to purchase and sell real estate. Some people are independent agents, but most prefer to work under a real estate firm. Agents earn commissions on the properties they sell, and depending on the transaction, they may represent either the buyer or the seller. Many agents specialize in a specific area of real estate. An agent works closely with clients to determine their goals and how much they are willing (or able) to spend. The agent may also coordinate with the mortgage lender to ensure the buyer has the means to complete the purchase.

What Exactly is an Appraiser?

A real estate appraiser carefully examines the property to determine its value at the time of sale or development. To assess the market value, the appraiser physically inspects the property and collects the following data:

• Measurements of all structures
• Photos of the property’s interior and exterior
• Information on the intended use of the property
• Details about the architectural quality of all buildings
• Property features that may impact its value (such as proximity to a busy road)

The appraiser must also accurately research current market conditions in the property’s geographic area. This may involve an analysis of “comparable properties” or similar properties in the area that have recently sold and are believed to be close in value to the one in question. The appraiser is responsible for verifying any legal descriptions of the property from public records.

The main difference between agents and appraisers

Real estate agents and appraisers often gather and examine similar information, and appraisers have access to public records. However, the key difference lies not in the information they collect, but in how they use it. Agents are committed to serving their clients’ best interests. They aim to provide the best possible service and will use market data to achieve that goal. Appraisers, on the other hand, are independent and not client-focused. Despite analyzing similar data, agents and appraisers may reach different conclusions, purely because their objectives and perspectives differ significantly based on the nature of their interactions with clients. For instance, this may lead to different valuations of a particular property. There is, therefore, a fundamental distinction between these two roles.