As the Boston condo for sale market shits from a Seller’s market to a Buyers sometimes a conflict of interest occur with Boston condo brokers and Boston appraisers.
In this real estate video, they dive into potential conflict with each party.
It seems to be a never-ending battle between the two groups of industry professionals. During the debate, they’ll go deep on what each group brings to the transaction process.
- Licensed real estate brokers provide an opinion of value to homeowners for a variety of purposes. Examples include determining a listing price for selling a home, establishing the value of a home for an estate or other legal matters, and determining the current value of a home for insurance purposes. BPOs cost less than residential real estate appraisals and may be obtained faster. When requesting a BPO, select a broker specializing in your area because home values and sales trends vary by neighborhood.
- Mortgage lenders issue home loans based on a home’s current value. They rely on residential real estate appraisals for gathering and interpreting information used for valuation of the subject property. A real estate appraisal is more complex than a BPO and includes information from public records along with diagrams and photos provided by the appraiser, who inspects the interior and exterior of the property. An appraisal includes three comparable properties used for demonstrating values in the immediate area and for supporting the valuation of the subject property. They contain notes about a property’s age, architectural features, condition and necessary repairs.