In doing a listing appraisal, there is less pressure on the appraiser to estimate a pre-determined value or help complete a sale. After a property is in escrow, appraisers are often pressured to hit the agreed-upon sale price, ignore defects and help close the deal. Appraisers tend to be more analytical and detached about real estate because they don t work directly with buyers and sellers. An appraiser will usually measure the buildings and other improvements more accurately than a real estate agent. This method is well-suited for standard residential properties and unimproved land.
Many appraisers also use rank analysis, especially for private and non-lender work.
In the real world, buyers and sellers make decisions by comparing the entire property. In fact, experienced litigation appraisers don t even attempt to use adjustments in a court of law because they are so easily challenged. Commercial, industrial and complex residential properties can also be appraised using rank analysis. However, they usually require the use of other appraisal techniques as well. The following is guide for both real estate agents and appraisers for setting the listing price.