Real estate is one of those careers where you can make a decent living easily. You do need to work a lot to achieve success, but it’s one of those very lucrative professions.
You need to finish some coursework and to earn some certificates along with the license. That’s about it with the things you require before you start.
We’ll cover the topic of what a real estate agent exactly does. So, it’s not uncommon for a real estate agent to take up an extra job to earn some extra money.
Many realtors try to work in a similar field because they can expand their client base. So, what about real estate appraisers?
Real estate agents can do a lot of things besides the obvious – they can sell insurance, for example. But, can they appraise real estate?
Can a real estate agent also be an appraiser? Continue reading to find out can you take on this job as well!
What Does A Real Estate Agent Do?
It may seem obvious, but the real estate agent’s job is to help people move their homes. Moving home means to sell, buy, or rent a property.
The real estate agent is an educated, licensed individual that has exclusive knowledge. The exclusive knowledge applies to the real estate market, current conditions, ideal moments to sell or buy, and similar things. They can advise people about buying and selling, apart from helping them move houses.
Real estate agents can decide if they want to work from home or in a brokerage. There are some pros and some cons, but it’s up to you to decide which arrangement works best for your needs.
Residential And Commercial Property
- There are two types of property that real estate agents work with – commercial and residential. Residential properties are houses, apartments, vacation homes, and so on.
- Residential property is a property meant for living. Obviously, this is the most common type of real estate. Realtors that work with residential property can advise first-time buyers about what they might need in a home.
- The agent can tell you exactly what you might need, because well, it’s their job to know more about real estate than you. Commercial property is a little different, though.
- Commercial properties are meant for businesses and companies. Commercial property is usually an office, building, or land. Either way, it’s a property not meant for living in.
- Most agents decide to work with one field, either commercial or residential. These two markets are completely different. Factors that affect the commercial real estate market don’t affect the residential and vice versa.
- It’s much easier to keep track of market changes when you’re working with only one market. This is why most agents choose to work with only one.
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What Does A Real Estate Appraiser Do?
A real estate appraiser’s most important job is to estimate the value of a certain property. The value is assigned according to several factors.
An appraiser also has to check the properties’ public records, do a thorough inspection of the real estate property. They have to write a report afterward, to explain their findings.
Real estate appraisers often use similar property in the area to assign value to the property. This is just one method of a few that appraisers use to determine value. Another thing that appraisers do is keep current data on each real estate property they appraised.
Real estate can also work with one field exclusively – commercial or residential. The reason why is the same, more or less. One more thing is that it can be much harder to assign value to commercial value.
It takes more knowledge and work, but appraisers choose to do it nevertheless. Why? Well, appraising a commercial property is paid a lot more.
Real estate appraisers can work independently or for an appraisal company. If they work independently, they usually work ‘on-hire’, so they don’t have a consistent volume of work per se.
An appraiser usually examines one property at a time, rather than several properties. That way, they can focus completely on one job before moving on to the next. If you want to read up on appraisers, check out our article.
Can A Real Estate Agent Also Be An Appraiser?
We already mentioned that real estate agents often take up an extra job to get some extra income. So many agents choose to work from home to cut on expenses, too. So, can they work as an appraiser, too?
The answer is yes, a real estate agent can also be an appraiser. There is no legal problem with it – any agent can take up appraisals, too.
It can be even convenient if your agent can complete an appraisal. That is if your agent is representing you as a seller.
There is no need to hire an appraiser, because if your agent can do it – the whole process can be done much faster. With a completed appraisal, a seller can gain a better idea of what kind of price are buyers ready to pay for their property.
The appraiser can even make a thorough comparative market analysis. A regular agent can make an analysis too, but it will not be as thorough and informative as one that an appraiser could make.
On the other hand, if you’re a buyer, you might not benefit as much from having an agent that’s also an appraiser. The reason behind that is that the appraiser might not get enough information about the property from the seller.
As a result, the appraiser might not be able to do a thorough inspection and do a good appraisal of the object. And one more thing – the agent that works for you when you’re selling, can only do an unofficial appraisal.
If the agent is representing you, they cannot issue an official appraisal, but they can tell you what amount of money you can expect. An agent should not work as a real estate agent and an appraiser at the same time.
What’s Different About These Two Jobs?
- The first thing we can name as the crucial difference is the amount of work required to become an agent compared to becoming an appraiser. We already talked about becoming an agent – it takes some coursework to get certificates, but it’s a fairly simple process.
- Becoming an appraiser is not that simple – it takes a few courses and a lot of practice. Also, to become an appraiser, you need a bachelor’s degree and to complete 3,000 hours of practice in an appraisal company.
- Another important difference is that real estate agents have to protect their clients’ best interests. Agents have to be subjective to successfully help their clients.
- On the other hand, an appraiser has to be objective at all times. They have to do a good appraisal job and correctly estimate the value of the property at hand.
- Something different about this job is that appraisers are paid for their work no matter what. They are paid sooner than agents – when they finish their report. Agents are paid only if they close the sale of the property since they get a commission or a percentage of the sale.
Conflict Of Interest
- Almost all agents that have a license for appraisal avoid working as both for one client. The reason why is a conflict of interest.
- An appraiser has to accurately assign value to the property, and if they’re working as an agent for that property, that may be a problem. One of their responsibilities may be compromised and underwriters are aware of this.
- However legal, underwriters may refuse to work with such an arrangement. The appraised may be too high or too low, whether the appraiser is an agent for a seller or a buyer.
- If you want to work as both an agent and an appraiser, we would advise you to avoid working as both for one client. It may be convenient, but you can find yourself in an unfavorable position.
Can A Real Estate Agent Also Be An Appraiser – Conclusion
To conclude, a real estate can also be an appraiser. It can be a fun profession because it’s pretty much the same field, but the responsibilities are different.
Because of the conflict of interest, it’s not a good idea to represent a client and appraise their property. If you’re interested in obtaining a dual license, be aware of this before you begin.
Some clients even may be uncomfortable in such an environment. It’s important when you’re an agent that your clients feel you have their best interests at heart.
If they feel you put your income above their interests, your success as either a real estate agent or an appraiser may suffer!