Can I Write an Appraisal Without an Appraiser's License?
According to the Appraisal Institute, an appraisal provides an unbiased opinion of value for real property. Appraisals may be written only by state-licensed appraisers as regulated by individual states. To obtain an appraisal license, you must complete the requirements set forth by the Appraisal Foundation.
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Warning
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Realtors are not licensed appraisers, but they often write reports referred to as appraisals. A broker price opinion, or BPO, entails a comparative analysis to recommend a price for a property. According to the Nevada Association of Realtors, a realtor must always disclose that the BPO opinion relates to price rather than to value and must clearly state that the realtor hopes for a listing on the property.
Significance
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As a sales agent, a realtor's calculation of a price is motivated by the intention to profit from a sale. Real estate appraisers have no personal interest in the outcome of their opinion. Their disinterest allows them to freely evaluate the market from a number of perspectives to determine current market value. A significant gap may exist between price and value.
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Function
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Only licensed appraisers may write an appraisal that can be used for lending purposes. Other uses for appraisals include negotiation of leases, the value of land acquired by government entities and appeals against tax assessments.
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