Charles, a real estate professional, has just finished touring a property he'd like to list for sale. When talking with the owner about the property and comparing it to other properties recently sold in the area, he tells the owner he appraises the property at a value of $350,000. What, if anything, did Charles do wrong?

Question

Clyde

Business

6 February, 05:14

Charles, a real estate professional, has just finished touring a property he'd like to list for sale. When talking with the owner about the property and comparing it to other properties recently sold in the area, he tells the owner he appraises the property at a value of $350,000. What, if anything, did Charles do wrong?

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Andrew Dean · Answer 1

Charles is a real estate agent, not a property appraiser, so he cannot refer to his opinion as the value of the property.

This is something very risky to do, because if Charles underestimated the value of the property, the owner might believe that he did on purpose in order to sell it faster, but that would hurt him as the seller. On the other hand, if Charles overestimated the value of the property, then the owner might get mad thinking that Charles tried to trick him through false expectations.

Any mistake in the appraisal value can result in a broken deal, and maybe even the filing of a formal complaint against Charles.