Can a real estate agent do an appraisal in the Quad Cities?

This is a question that comes up all the time from both buyers and sellers:

The short answer is no, real estate agents cannot perform official appraisals. But the longer explanation matters, because there’s a lot of confusion around what agents can do, what appraisers do, and why both play very different roles in a real estate transaction.

Why This Question Comes Up So Often

Most people are really asking one of two things:

• “Can my agent tell me what my home is worth?”

• “Why do I need an appraisal if my agent already priced the home?”

Those are fair questions, and the confusion usually comes from mixing up comparative market analysis with formal appraisals.

Can a Real Estate Agent Legally Do an Appraisal?

No. In both Iowa and Illinois, real estate agents are not licensed appraisers, and they cannot perform an official appraisal for lending or legal purposes.

Appraisals must be completed by a state-licensed or certified appraiser who meets strict education, testing, and independence requirements. Lenders rely on appraisers because they are neutral third parties with no stake in the transaction.

What a Real Estate Agent Can Do Instead

While agents cannot perform appraisals, they can provide something just as important in most transactions: a Comparative Market Analysis, often called a CMA.

A CMA is an agent’s professional opinion of value based on:

• Recently sold homes

• Active and pending listings

• Market trends

• Condition, location, and features of the property

This is what agents use to help sellers price their homes and buyers decide what to offer.

condo in davenport iowa

The Difference Between an Appraisal and a CMA

An appraisal is designed to protect the lender.
A CMA is designed to guide the buyer or seller.

Appraisers follow strict guidelines and focus heavily on closed sales and adjustments. Agents, on the other hand, are focused on what buyers are actually willing to pay in the current market, which includes emotion, competition, and demand — things an appraisal doesn’t always fully capture.

Both are valuable, but they serve different purposes.

How Appraisals Are Used in Quad Cities Transactions

In the Quad Cities, appraisals are typically required when a buyer is using a mortgage. The lender orders the appraisal, not the buyer or the agent, and the appraiser works independently of everyone involved in the deal.

If the appraisal comes in at or above the purchase price, the transaction usually moves forward without issue. If it comes in low, that’s when experience and negotiation matter.

What Happens When an Appraisal Comes in Low

I’ve been involved in many transactions where appraisals didn’t match the agreed-upon price. When that happens, there are usually a few options:

• Renegotiate the price

• Challenge the appraisal with better data

• Adjust loan terms

• In some cases, walk away

This is where a strong CMA and clear documentation from the start can make a real difference.

When Someone Should Get a Formal Appraisal

There are situations where a formal appraisal makes sense outside of a purchase:

• Refinancing

• Estate planning

• Divorce

• Cash transactions where value is disputed

• Legal or tax matters

In those cases, a licensed appraiser is the right professional for the job.

what can quad city real estate agents provide info graphic

Online Home Values vs Appraisals vs Agent Pricing

Online estimates can be helpful for general reference, but they don’t replace local expertise. Automated values don’t account well for condition, upgrades, neighborhood nuances, or buyer behavior.

In practice, the most accurate pricing usually comes from combining local market knowledge with real transaction data, not relying on a single number from an algorithm.

What Buyers and Sellers Should Really Understand

An appraisal is not a guarantee of market value, and an agent’s CMA is not a formal appraisal. Both are tools, and both have limitations.

The key is knowing which tool applies to your situation and how to use it strategically.

Frequently Asked Questions (FAQ)

Q: Can a real estate agent do an appraisal in the Quad Cities?
A: No. Real estate agents are not licensed appraisers and cannot perform official appraisals.

Q: What can a real estate agent provide instead of an appraisal?
A: Agents provide a Comparative Market Analysis (CMA), which is an informed opinion of value based on local market data.

Q: Does a lender accept a CMA instead of an appraisal?
A: No. Lenders require a formal appraisal completed by a licensed appraiser.

Q: Which is more accurate, an appraisal or a CMA?
A: They serve different purposes. Appraisals protect lenders, while CMAs reflect current market behavior and buyer demand.

Q: Do cash buyers need an appraisal?
A: Not always. Cash buyers may choose to rely on a CMA, though some still order appraisals for reassurance.

Making Your Move Easier

Understanding pricing, value, and how appraisals work doesn’t have to be confusing. With the right guidance and local market knowledge, you can make informed decisions with confidence.

Alex Skeen is trusted by buyers and sellers across the Quad Cities for his ability to explain value clearly, price homes accurately, and navigate appraisals when challenges arise.

If you want straightforward advice from one of the most trusted real estate professionals in the Quad Cities, here’s how to get in touch:

📧 Email: [email protected]
📞 Phone: 563-284-7474
💻 YouTube: LIVING IN THE QUAD CITIES