Who’s the Appraisal Client?

Posted on 18 Feb, 2023

When you hear the term "property appraisal," you might assume that the client is always the person or entity that owns the property in question. However, this isn't always the case. In fact, there are several different types of clients who might hire a property appraiser, and understanding who they are can help you better understand the appraisal process.

1. Property owners: As mentioned, property owners are one type of client who might hire a property appraiser. They might do so in order to determine the value of their property before putting it on the market, refinancing their mortgage, or making improvements.
2. Lenders: Banks and other lenders are another common client of property appraisers. When someone applies for a mortgage or other type of loan, the lender will typically require an appraisal to determine the value of the property that will serve as collateral for the loan. This helps the lender assess the risk of the loan and ensure that the property is worth the amount of money they are lending.
3. Real estate agents: Real estate agents might hire property appraisers to help them determine the appropriate listing price for a property. By getting an appraisal, they can make sure that they are pricing the property correctly and not over- or under-valuing it.
4. Government agencies: Government agencies, such as tax assessors, might also hire property appraisers to determine the value of properties within their jurisdiction. This is often done for the purpose of calculating property taxes or other fees.
5. Attorneys: Attorneys might also hire property appraisers for a variety of reasons, such as to determine the value of a property as part of a divorce settlement or to determine the value of property in a condemnation case.

It's important to note that regardless of who hires the property appraiser, the appraiser's job is to provide an objective, unbiased assessment of the property's value based on a variety of factors, such as its location, size, condition, and recent sales of comparable properties. This ensures that all parties involved in the transaction have an accurate understanding of the property's worth.

In conclusion, there are a variety of clients who might hire a property appraiser, including property owners, lenders, real estate agents, government agencies, and attorneys. By understanding who these clients are and why they might need an appraisal, you can better appreciate the role that property appraisers play in the real estate industry.