Whether it is a primary residence, a second home, or an investment property, the purchase of real property is a complex financial transaction with the participation of multiple parties to pull it all off, the appraiser being one of them. An appraisers function is to be the independent and unbiased professional that interprets the value of a property and what a typical person would pay for the property.
Most industry professionals are very familiar with the transaction process. The Realtor, assists buyers and sellers in the sale of a property, is the most common face of the transaction. The mortgage company provides the financial capital necessary to fund the transaction and to assess their risk in the loan. The title company ensures that a clear title passes from the seller to the buyer. Each party stands to gain financially in the process. All but the independent appraiser.
There are too many people working on commission in the process to let such a transaction proceed without ensuring that the value of the property is on par with the amount being paid. So, who is responsible for making sure the real estate is worth the purchase price based on properties comparable to the property being appraised? The appraiser. A licensed/certified appraiser provides an unbiased estimate of what a buyer might expect to pay — or a seller receive — for a parcel of real estate, where both buyer and seller are informed parties. To be an “informed party”, most people turn to a licensed professional appraiser to provide them with the most accurate and true value of the property.
An appraisal is an unbiased opinion of value developed by professional appraisers whose goal is to protect the public trust.