Have you felt the tension between Realtors and appraisers? It’s not always there, but it sure is sometimes. There’s often latent frustration from transactions gone sour, “low” appraisals or agents pressuring for certain values. But beyond mere annoyance or anger, whether legitimate or not, tension is actually something to be expected since there really are some big differences between Realtors and appraisers. Here is a list I came up with.
This post pokes a bit of fun at the industry and stereotypes, so just roll with the good nature of it. No offense is meant. Obviously not all real estate agents drive luxury cars and I’ve never actually met an appraiser with a mullet (not yet). Let me clarify too what I mean by “people skills” in the appraisal category. I’ve heard constant feedback from real estate agents of appraisers who are impersonal, non-talkative during inspections and come across as anal in their communication. This is why I say the appraisal industry needs to freshen up on communication skills. It’s still possible to remain neutral and unbiased while being personable. I have nothing but love for my appraiser colleagues.
Advocate vs. Neutral Party: Most importantly, it’s crucial to understand that Realtors are advocates, while appraisers are a neutral party to the transaction. This is obvious, but I think it’s often misunderstood because we continually hear how appraisers need to “help” the housing market recover, as if it’s their moral responsibility. Ultimately, appraisers are interpreters for the housing market instead of helpers. Granted, I understand what people are saying with this type of language since there are shoddy appraisals that do negatively impact the market. But there is still a valid point to consider here since appraisers are fundamentally not helpers, advocates or tied to the transaction in the same way real estate agents are. An agent works to get the highest price for the seller or best opportunity for the buyer (and earn money when the deal closes), but the appraiser’s job is not to get the highest price or best scenario for either party, but rather measure the market and record findings in an appraisal report.
Helpful Articles: It’s my constant goal to be a resource to Realtors and build strong relationships. I hope this article was helpful and maybe made you chuckle. In case it’s relevant, feel free to check out Agents, be ready to answer these questions from appraisers, or Talking to appraisers in today’s changing real estate market (with infographic), or Why did it appraise “low” even with multiple offers?.
Anything else you’d add to the list? I’d love to hear your comments.
If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Twitter, subscribe to posts by email or “like” my page on Facebook
Well I made a comment on a post the other day and said how magically the real estate market seems to be turning right before an election…historically cheap rates controlled by the Feds and all the TARP Banks magically stopping their release of REO’s at once have caused a shortage of homes available and now a bidding war/run up of prices…a coincidence? Naw….
Elections especially for the powers in place looking to be reelected need consumer confidence numbers and most are rooted in housing. Negative numbers and media reports affect any incumbent more than any PAC will ever do. The Treasury has an impact on softly instructing banks to hold assets off of the market but the reality in this year is those assets in most cases get sold off in the background to people previously tied to trading firms who now are in charge of hedge funds. The two things an election year ends up impacting the market is A) programs or views on how to resolve in this case the defaulting homeowners, any changes could be positive or negative and B)
creating a mini bubble or what some might say is propaganda by simply creating what appears to be a rebounding market instead of a true market recovery, no impact of an election will be known until 6 months to a year after the election.
Last week I had Howard Blum on 
The “chicken in every pot” election promise goes back a couple of centuries, and is constantly evolving, with both parties. A house to go with that pot? So far, the Feds have sent $2 billion towards California just to assist in house payments. What happens when that’s gone? They will worry about that after the election.
During a normal election year I believe an election generally has very little effect. Some buyers or sellers may hold off until after the election to act. That is they will wait to see who is elected and gauge how that will affect their business, work, benefits, etc. But this year it seems to be different, and I think it is having a very large affect. This is because the economy is the largest issue on voters’ minds, which makes it the most important topic for voters and anyone running for election/re-election. The housing sector is seen to be the key to the economy, if it goes up so will the economy. I believe that politicians are doing everything they can to turn the housing market around and make it look good before the election. This, I think will have a beneficial result in housing across the nation.
I don’t really think much happens to the RE market as far a direct price changes but over time change will happen if major changes take place; lender financing, tax treatment, etc… basically any change to the layers that make up the value to real estate will have an effect to the RE market. 
