Why do Real Estate Agents think they are Appraisers as well???
Real Estate has had so many changes though out the years, and it's hard to keep track of everything. One thing that to me has had a significant change is "appraising a property" as we all know, we are not appraisers, but we can come up with an average market value for what the property should sell, or at least we were able to do it.
Not all estimates of value are made by professional appraisers, an agent often must help a seller to arrive at a listing price or a buyer determine an offering price for property without the aid of a formal appraisal report. In such a case, the agent prepares a research of the marketplace, primarily similar properties that have been sold known as a competitive (comparative) market analysis.
The agent must be very knowledgeable about the fundamentals of valuation to compile the market data. The competitive market analysis is not as comprehensive or technical as an appraisal and may be biased by an agent anticipated agency relationship. A competitive market analysis should not be represented as an appraisal.
But now, I have noticed that it is very hard to come up with the value, and there are so many things that contribute to that factor, for example the HUGE amount of foreclosures, the economy, market (whether is a Buyer's or a seller's market), the popular desire, etc
Unfortunately, there are many agents that don't take the time, to consult a "Licensed Appraiser" to get an estimate of the property, and because of that, so many deals die, because agents submit contract without really checking if the asking price reasonable.
So what I suggest, is always consult an actual appraiser, they know what they are doing, way better than we do, and that will save you and everyone who is involved in the transaction so much time, and trust me...then will appreciate it!!!!