Brampton Real Estate Agent Explains Whether Real Estate Agents Can Do Appraisals

Mats Moy, a real estate agent based in Brampton, ON, Canada, has explored in a new blog post the common question of buyers and sellers as to whether a real estate agent can provide appraisals in the Brampton real estate market and that of Toronto. To do that, he describes the distinctive responsibilities of appraisers and real estate agents. Furthermore, two different governing bodies regulate real estate agents and appraisers. And lastly, the article explains when real estate agents are able to provide informal valuations.

As a way to answer the question, the blog post presents the differences in the responsibilities of real estate agents and appraisers. Real estate agents are licensed professionals given the task of representing buyers or sellers during real estate transactions. As such, they are knowledgeable regarding real estate market trends, property valuation, and pricing strategies, but their main role is to serve as an intermediary between real estate sellers and buyers.

On the other hand, real estate appraisers are professionals with the highly specialized abilities of determining a property’s market value. To do that, they will perform detailed evaluations by taking into account various factors, including location, property condition, market trends, and recent sales data. Appraisers are the ones to go to when getting the market value of the property for property taxation, home financing, and legal issues.

In the province of Ontario in Canada, real estate agents and appraisers are under the control of certain governing bodies. For real estate agents, it is the Real Estate Council of Ontario (RECO), while for appraisers, it is the Appraisal Institute of Canada (AIC) or another recognized appraisal organization. The AIC sets the industry standards for property appraisal in Canada and appraisers need to comply with strict ethical guidelines and employ certain methodologies when determining real estate property values. They can offer detailed, well-documented reports that are vital for a number of financial and legal purposes.

RECO is the one that oversees the licensing of real estate agents in Ontario, including Brampton, and regulates their actions. While real estate agents can offer general estimates of the market value of a property, they are not qualified to provide formal property appraisals. Thus, in order to avoid conflicts of interests and ensure the accuracy of market valuations, real estate agents should be referring their clients to a professional appraiser when there is a need for a more accurate property valuation.

It is important to note that while real estate agents cannot provide formal property appraisals, they can provide informal valuations to their clients to give them a general idea of the property’s market value. These informal valuations are known as comparative market analyses (CMAs), which can be helpful during the initial phases of buying or selling a property. Compared to professional appraisals, CMAs are not as accurate and comprehensive.

The article concludes that, while real estate agents play a vital role in helping real estate buyers and sellers, they are not really qualified to provide formal property appraisals. In contrast, property appraisers are experts when it comes to determining the market value of a real estate property and they are overseen by the AIC or some other recognized organization to make sure they keep the highest standards of ethics and professionalism.

Mats Moy says, “When seeking to assess the value of a property in Brampton or Toronto, it's essential to understand the roles of real estate agents and appraisers and the limitations of each profession. While real estate agents can offer informal valuations through CMAs, for precise, legally-binding appraisals, it's advisable to consult a licensed appraiser who follows the established industry standards and guidelines.”

Mats Moy is a real estate agent who is ready to help people with regards to their real estate needs, whether they are buying, selling, investing, or relocating in the greater Toronto area. He covers a number of areas, such as: Brampton, Georgetown, Burlington, Caledon, Milton, Toronto, Oakville, and Mississauga.

Those who are in need of the services of a Brampton realtor, whether they are planning to buy or sell property, can check out the Mats Moy website or contact them on the phone or through email.