How to Become a Real Estate Appraiser
Editor & Writer
Editor
Editor & Writer
Editor
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Have you ever wondered how much a house is worth? Whether you are buying or selling or just interested in seeing if your home's value has changed, you have likely encountered a real estate appraiser.
A real estate appraiser determines the value of a property by inspecting it and comparing it to similar properties. The property's value, as determined by the real estate appraiser, is called an appraisal. Appraisals are used for tax assessments and determining mortgage loans, among other things.
Becoming a real estate appraiser can be a fulfilling and specialized career, but it requires meeting certain requirements and obtaining state-specific licenses and certifications. Here's everything you need to know about the requirements and qualifications to become one.
Why Should You Consider a Career in Real Estate?
Real estate is a good career in today's economy for several reasons:
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The industry offers the opportunity to be your own boss, set your own hours, and have the potential for substantial earnings through commissions. -
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It provides a chance to help people through significant moments like buying or selling a home, which can be both fulfilling and financially rewarding. -
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There is a projected demand for real estate professionals due to ongoing needs for new homes, relocations, and business property purchases. -
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The flexible nature of the work allows for meeting new people and engaging in varied activities each day, which can be an appealing aspect of the career for those who enjoy social interactions and a dynamic work environment.
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What Are the Requirements to Become a Real Estate Appraiser?
Becoming a real estate appraiser can lead to an exciting, specialized career. There are general requirements for becoming a real estate appraiser, as well as varying state-specific requirements. You can choose between several paths to pursue a career as a real estate appraiser.
Owner and founder of HouseCashin, Marina Vaamonde, suggests appraisers make their own website and create videos or articles that debunk popular online myths about appraisals.
"Somewhat paradoxically, I think it comes down to using the internet to build — as much as I dislike the phrase — your personal brand," Vaamonde told BestColleges.
Minimum Requirements
The Appraisal Qualifications Board (AQB) sets minimum requirements for education and experience for real estate appraisers. These professionals may also need to take a certification exam. For example, someone who hopes to become a real estate appraiser must complete at least 150 hours of education and 1,000 hours of experience over at least six months in order to obtain a Licensed Residential Real Property Appraiser license.
These are minimum requirements across the United States; however, each state can add additional requirements. These requirements will need to be met in order to apply for state licensing or certification.
Earn Qualifying Education
The AQB requires appraisers to meet minimum education requirements. You must become an trainee appraiser in order to become a licensed property appraiser. Typically, a trainee is supervised by a certified appraiser.
Trainee appraisers must complete at least 75 educational hours. Future appraisers can meet this requirement by taking courses in basic appraisal principles and procedures, as well as completing a Uniform Standards of Professional Appraisal Practice (USPAP) course.
Once you have completed the trainee appraiser requirements, you will need to continue taking courses. The number of classes you must take varies based on the certification level you're seeking. For instance, a licensed residential appraiser must complete 150 hours of qualifying education; certified residential appraisers need 200 educational hours; and certified general appraisers must earn 300 hours.
Several organizations offer appraisal courses and you do not need a college degree in order to become a real estate appraiser. Additional educational requirements vary depending on the state.
Find a Supervisor Appraiser
A supervisor appraiser should be certified in good standing. You should check with the state you wish to become certified in to see if it requires supervisors to hold a specific number of years of experience.
You can search the National Registry of Appraisers to find a supervisor appraiser in your area.
National Appraiser Licensing and Certification
Once you have completed your necessary education and experience, you can apply to test for licensing and certification through your state. Your appraiser training courses cover all the necessary information for the tests.
You may be tested on subjects like appraisal math and valuation methods. Check online for practice tests and sample questions. The program you completed your educational hours with may also have study guides or test prep resources.
After passing your exam, you can apply to become a licensed residential appraiser.
Scope of Practice of a Licensed Residential Appraiser
A Licensed Residential Appraiser has the skills to evaluate non-complex residential properties of 1-4 units valued at under $1 million and complex 1-4 unit residences valued at under $250,000. This role, however, does not cover the assessment of subdivisions. Their area of expertise includes valuing properties such as single-family homes, duplexes, triplexes, and single-family homes with additional dwelling units or garage apartments.
How Long Does It Take to Become a Real Estate Appraiser?
Market swings can impact an appraiser's job. "When the market is on the upswing and rates are low, many owners are looking to refinance their homes, so the success of their deal depends on a high appraisal," Vaamonde said. "When the market is low, this pressure is eased a little as sellers are more willing to negotiate on the sales price of a home."
The amount of training and the length of time it takes to become a real estate appraiser is dependent upon which type of appraisal certification you are completing. The different appraiser options each have different education and experience requirements.
Trainee Appraiser
Becoming a trainee appraiser requires 75 hours of qualifying education, and you must work under a licensed appraiser. There are no required degrees.
Licensed Residential Appraiser
In order to become a licensed residential appraiser, you need to complete 150 hours of qualifying education and 1,000 hours of appraisal experience in no fewer than six months. You must also pass a licensing test and apply for licensure.
Certified Residential Appraiser
Unlike trainee appraisers and licensed residential appraisers, certified residential appraisers must possess a college education on top of the 200 hours of qualifying appraisal education. These professionals must also complete 1,500 hours of experience in no fewer than 12 months.
There are several options for meeting the college education requirement. This includes:
- Earning a bachelor's degree in any field
- Earning an associate degree in a related field like accounting, business administration, or real estate
- Completing 30 hours of college-level courses that cover specific subjects
You may also become a certified residential appraiser if you have been a licensed residential appraiser for at least five years with no negative actions taken on your license.
Certified General Appraiser
On top of earning a bachelor's degree in any field, certified general appraisers must also complete 300 hours of qualifying appraisal education. You must also complete at least 3,000 hours in no fewer than 18 months. Of those hours, 1,500 must be in non-residential work.
The Future of Home Appraiser Training
Home appraiser training is evolving due to recent changes that have introduced anti-bias training requirements in several states, and by incorporating bias and discrimination topics into ongoing education courses. For example, in Minnesota and New York, appraisers must now complete anti-bias training to be licensed. The Appraisal Foundation's course now also covers bias and discrimination.
Training seems set to focus on tackling systemic biases and improving the appraisal process through modernization and advanced technology utilization. For instance, the Federal Housing Finance Agency is mulling over proposals that could revolutionize the real estate appraisal process, such as implementing appraisal waivers, hybrid appraisals, and automated valuation models.
Also, starting January 1, 2024, the Appraisal Standards Board updated USPAP, significantly expanding its ETHICS RULE to encourage unbiased and nondiscriminatory practices. These updates clarify that appraisers should comply with anti-discriminatory laws and regulations and incorporate suggestions from industry regulators and stakeholders.
Frequently Asked Questions About a Real Estate Appraiser's Career
How do I find an appraiser mentor?
To find an appraiser mentor, start by networking with your existing contacts in real estate and appraisal. Check online for trainee appraiser job listings at firms and agencies, utilize social media to connect with professionals in the field, and attend local networking events and appraiser conferences. Additionally, consider directly contacting banks, real estate companies, and appraisal firms to inquire about mentorship opportunities.
How much do top real estate appraisers make?
The Bureau of Labor Statistics reports that property appraisers and assessors earned a median annual salary of $61,630 in May 2023. Certified general appraisers typically earn between $81,000 and $147,000 annually, while Certified Residential Appraisers' earnings range from $70,000 to $200,000, according to the National Association of Realtors.
Earnings can increase with experience, especially if they manage other appraisers or work in high-value property areas. Factors such as location, market conditions, and client base also influence income levels.
Is being a real estate appraiser stressful?
Being a real estate appraiser comes with its own set of stresses, as it involves accurately determining property values for high-stakes transactions. Appraisers may feel pressure to deliver precise reports and can face stress from challenging clients or scrutiny over their appraisals.
What is the highest level of appraiser?
The highest level of appraiser certification is certified general appraiser. These professionals are qualified to appraise all types of real property and face the strictest education and experience requirements.
