Job is to determine a strategic listing price that will best facilitate the sale of the property, which is not necessarily the current market value. This listing price is affected by what else is on the market at that particular moment, and can be affected by needs for personal gain, ie, their wish to get the listing.
Represent clients’ best interests. Not expected to be impartial.
Have less rigorous reporting standards. Not required to report how they arrived at their price conclusions from the data they provide. They are paid a percentage of the sale price.
Job is to arrive at an unbiased opinion of market value.
Must abide by USPAP Guidelines which include:
- Strict reporting standards. Appraisers must describe the information analyzed, clearly state the appraisal methods and techniques employed, and the reasoning that supports the analysis, opinions, and conclusions;
- Appraiser must not be biased.
- Appraiser must not be involved in an assignment with predetermined results.
- Appraiser must not have an interest in the outcome of a transaction, ie, not paid a fee based on the appraisal results.