====== Appraiser ======

An **appraiser** is a **licensed professional** who provides an **opinion of value** for real property based on analysis of market data and property characteristics.

===== Key Characteristics =====
  * Determines **market value**, not price
  * Must be **impartial and independent**
  * Uses recognized **valuation methods**
  * Prepares a written **[[appraisal report]]**
  * Often required by lenders for financing

===== Common Valuation Approaches =====
  * **Sales Comparison Approach**
    * Compares the subject property to recently sold comparable properties
    * Most common for residential property

  * **Cost Approach**
    * Estimates value by calculating the cost to replace or reproduce improvements
    * Depreciation is subtracted
    * Often used for new or special-purpose properties

  * **Income Approach**
    * Based on the property’s ability to generate income
    * Uses [[capitalization rate]]s and net operating income
    * Common for income-producing properties

===== Role in a Transaction =====
  * Protects the **lender and public**
  * Helps ensure the property is not overvalued
  * [[Appraisal]] may affect **loan approval and amount**

===== Appraiser vs Broker =====
  * **Appraiser**
    * Gives an opinion of value
    * Must be neutral

  * **[[Broker]]**
    * May give a price opinion (CMA/BPO)
    * Represents a client

===== Exam Tip =====
  * An appraisal is an **opinion**, not a guarantee of value
  * Appraisers do **not set the sales price**