People You should Know

Knowing the difference between real estate sales people, financial officers and executives, and licensed and certified real estate appraisers is crucial. Real Estate salespeople are generally knowledgeable in a given locale, have access to historical data, and have training in the marketing, purchasing, and selling of real property. They may or may not have appraisal training and can often provide comparative market analysis. In stable market conditions, where quality of data is abundant, CMA’s can be relatively accurate.

Real Estate salespeople, because they work so closely with buyers and sellers in a specific area, have insight to buyer/seller motivations and preferences. As a group, they often do not consider as many value affecting factors as appraisers and do not employ the cost and income approach to valuation. Real Estate salespeople can give an indication of market price while only appraisers can give an opinion of value (market, investment, insurance etc).

Some Real Estate financial officers and executives have sophisticated analytical training in property valuation while others have a limited ability to understand economic and appraisal concepts. This reflects the wide array of services provided by people from this category, including loan officers, closing agents at title companies, relocation officers and agents, and others. Real Estate investment advisors often can provide sophisticated analysis though they are rarely trained appraisers.

Appraisers are trained specifically in the analysis of property valuation, employing the cost, income, and comparison approach. They give opinions of value (while Realtors can only give estimates of price) with a transparent report supported by market evidence. They report various types of value, including market, insurance, and investment and can project value under various economic environments as the circumstances warrant.

Any questions or for FREE customized Market Reports, automatic email updates on properties that fit your criteria, or Realtor Referrals, please EMAIL ME or call me at 734-478-9270. -Anwell Tsai