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The job of an appraiser is to provide independent opinions on the value, quality, and other aspects of real property. Appraisers must be able as well to analyze financial data in order to effectively assess properties. What are the key skills needed for this career?
The market value of commercial and residential properties is estimated by real estate appraisers. The steps to becoming a real estate appraiser vary by state, but they always include taking prelicensing classes, gaining professional experience, and passing a test. We’ve put together this step-by-step guide to help you learn how to become a real estate appraiser, complete with state-specific information and paperwork.
1. Complete Coursework to get a Trainee License.
You must first become a real estate assessment trainee before you can become a real estate appraiser. That implies you must finish and pass a particular curriculum in real estate valuation in order to become a real estate appraiser. National course requirements are defined by the Appraiser Qualifications Board (AQB); however, certain states need extra study. Each state regulates the appraisal profession differently, but all require you to begin your career as a trainee appraiser.
National
The AQB requires that you complete 75 credit hours of instructional coursework from an accredited source to become an appraisal trainee. The following is a breakdown of the mandatory core curriculum courses that cannot be replaced by experience:
- Basic Appraisal Principles (30 hours): This course covers fundamental real estate ideas, legal issues, real estate financing, economic principles, and appraisal ethics for aspiring appraisers.
- Appraisal Procedures (Basic) (30 hours): The methods course teaches students how to gather data, characterize the subject property, and explain appraisal conclusions, as well as the three classic techniques to value—cost approach, a sales comparison approach, and the income approach.
- USPAP (15 hours): National Uniform Standards of Professional Appraisal Practice (USPAP): The 15-hour USPAP course outlines industry standards for ethical conduct and competent performance as outlined in the USPAP.
You don’t have to complete all of these hours at once since training institutions such as Hondros College allow you to enroll in specific courses. Bundled courses, on the other hand, are usually less expensive. These seminars are not only compulsory, but they are also beneficial since they educate you on how to produce an objective assessment of a property’s worth for tax, mortgage, insurance, and other reasons. Class styles, hours, and locations vary by provider, but an authorized license course should cost between $500 and $1,400.
What if I told you that while the training is an upfront cost, qualified real estate appraisers may expect to earn between $69,000 and $88,000 in 2020, based on their expertise, credentials, and hours spent. Furthermore, the US Bureau of Labor Statistics predicts that demand for appraisers will expand by 7% over the next decade.
State
Some states need extra classroom time in addition to the national course requirements to become an appraiser trainees. The 15-hour USPAP trainee class, as well as state-specific criteria, are still required in these states.
Here’s a short rundown of how many hours of prelicensing education each state requires:
Visit the state licensing board’s website or an online training provider’s website to learn more about your state’s requirements.
2. Completion of Appraiser Fieldwork Hours
Following your certification as an appraiser trainee, you must begin working under the supervision of a certified real estate appraiser. You must complete 1,000 to 2,500 hours of supervised work in around six months before going on to the next level of appraiser license. Below are the criteria for your state:
Residential appraisal companies and banks often hire trainee appraisers. Although obtaining a job as a real estate assessment trainee might be difficult, these firms often have the highest demand for real estate evaluation services. Job boards like the American Society of Appraisers’ job bank or Indeed might also help you locate a job. Just make sure you work under the supervision of a professional appraiser and keep account of your hours.
Go to the state board website and print out every appraiser within a 10-mile radius, and just start phoning them, certified home appraiser Doug Haderie advised those just starting out. Haderie said he printed out roughly 40 pages of material but didn’t get beyond the second page before getting a lead for a project that turned into his first step into real estate assessment.
3. Pass the Appraiser Licensing Exam in Your State
You may register for the real estate appraiser test after you’ve completed the requisite hours of work experience in your state. The Licensed Residential test is made up of 110 questions that must be answered in four hours. Your test may be offered by one of the following appraiser licensure exam providers, depending on your state and location:
To discover the real estate appraiser test schedule in your location, you’ll have to browse each website. At the time of enrollment, you will be charged an exam cost, which varies by state. Make sure you have two kinds of government-issued identification when it’s time for your test.
With a nationwide first-time pass rate of 57 percent for the Licensed Residential test, it’s doubtful that you’ll pass without putting in substantial effort and concentration to understand the subject. Use CompuCram’s Real Estate Appraisal Exam Prep course to improve your chances of passing the exam the first time. You’ll receive a money-back pass guarantee, six months of access, and interactive study tools to help you prepare for the exam.
4. Submit your application for an appraiser’s license.
You will submit a licensing application to your state’s board of real estate appraisers after completing your work experience and passing your test. Background information, proof of course completion, job history, and an experience report are all required by different states.
You may start working as a real estate appraiser after your license has been authorized, but there are restrictions on the kinds of property you can assess. You can only evaluate non-complex, one- to four-unit residential properties worth less than $1 million and complex, one- to four-unit residential properties costing less than $250,000 as a qualified home appraiser.
Alabama
Hours of Prelicensing Coursework: 150hours.
Alaska
Hours of Prelicensing Coursework: 225 hours
Arizona
Hours of Prelicensing Coursework: 150 hours
Arkansas
Hours of Prelicensing Coursework: 75 hours
California
Hours of Prelicensing Coursework: 150 hours
Colorado
Hours of Prelicensing Coursework: 150 hours
Connecticut
Hours of Prelicensing Coursework: 200 hours
Delaware
Hours of Prelicensing Coursework: 150 hours
Florida
Hours of Prelicensing Coursework: 200 hours
Georgia
Hours of Prelicensing Coursework: 150 hours
Hawaii
Hours of Prelicensing Coursework: 150 hours
Idaho
Hours of Prelicensing Coursework: 150 hours
Illinois
Hours of Prelicensing Coursework: 200 hours
Indiana
Hours of Prelicensing Coursework: 200 hours
Iowa
Hours of Prelicensing Coursework: 200 hours
Kansas
Hours of Prelicensing Coursework: 150 hours
Kentucky
Hours of Prelicensing Coursework: 150 hours
Louisiana
Hours of Prelicensing Coursework: 200 hours
Maine
Hours of Prelicensing Coursework: 150 hours
Maryland
Hours of Prelicensing Coursework: 150 hours
Massachusetts
Hours of Prelicensing Coursework: 150 hours
Michigan
Hours of Prelicensing Coursework: 150 hours
Minnesota
Hours of Prelicensing Coursework: 150 hours
Mississippi
Hours of Prelicensing Coursework: 150 hours
Missouri
Hours of Prelicensing Coursework: 150 hours
Montana
Hours of Prelicensing Coursework: 150 hours
Nebraska
Hours of Prelicensing Coursework: 150 hours
Nevada
Hours of Prelicensing Coursework: 153 hours
New Hampshire
Hours of Prelicensing Coursework: 150 hours
New Jersey
Hours of Prelicensing Coursework: 150 hours
New Mexico
Hours of Prelicensing Coursework: 150 hours
New York
Hours of Prelicensing Coursework: 150 hours
North Carolina
Hours of Prelicensing Coursework: 150 hours
North Dakota
Hours of Prelicensing Coursework: 150 hours
Ohio
Hours of Prelicensing Coursework: 150 hours
Oklahoma
Hours of Prelicensing Coursework: 150 hours
Oregon
Hours of Prelicensing Coursework: 150 hours
Pennsylvania
Hours of Prelicensing Coursework: 200 hours
Rhode Island
Hours of Prelicensing Coursework: 150 hours
South Carolina
Hours of Prelicensing Coursework: 150 hours
South Dakota
Hours of Prelicensing Coursework: 150 hours
Tennessee
Hours of Prelicensing Coursework: 150 hours
Texas
Hours of Prelicensing Coursework: 150 hours
Utah
Hours of Prelicensing Coursework: 150 hours
Vermont
Hours of Prelicensing Coursework: 200 hours
Virginia
Hours of Prelicensing Coursework: 150 hours
Washington
Hours of Prelicensing Coursework: 150 hours
West Virginia
Hours of Prelicensing Coursework: 150 hours
Wisconsin
Hours of Prelicensing Coursework: 150 hours
Wyoming
Hours of Prelicensing Coursework: 200 hours
5. Look for work as a real estate appraiser who is licensed.
You may look for job vacancies on websites like Indeed to get employment as a certified real estate appraiser. You’ll most likely start your career working for a bank or a private assessment firm. However, the United States Bureau of Labor Statistics (BLS) predicts that employment for real estate appraisers will increase over the next ten years.
Did you know? According to the Bureau of Labor Statistics, there were over 55,000 real estate appraiser positions in 2020, with a predicted growth rate of 3% from 2019 to 2029.
You’ll need access to a multiple listing service (MLS) to study closed and current properties for sale in order to effectively evaluate real estate. For about $150 per year, you may join the National Association of Realtors (NAR) and obtain access to an MLS. This expense may be reimbursed by your employer, depending on your company.
6. Get a Better License
You may desire to improve your license after a few years as a licensed home appraiser. Certified Residential Appraiser and Certified General Appraiser are the two forms of real estate appraiser license upgrades.
Certified residential appraisers are qualified to assess bigger, more expensive homes, while certified general appraisers are qualified to appraise all forms of real estate. If you wish to grow your company to bigger residential or commercial buildings, consider upgrading your license.
Keep in mind that some states require appraiser trainees to finish final preparation coursework or degree programs, such as an associate degree or college-level courses, before updating their license. Despite the fact that the AQB hasn’t made this a nationwide requirement since May 2018, certain states have preserved the requirement or asked for extra coursework. New York, for example, requires candidates to have completed 30 semester hours of appropriate college-level coursework or a bachelor’s degree or higher.
The Advantages of Becoming a Residential Appraiser
The biggest advantage of being a licensed home appraiser is that you may evaluate houses for more than $1 million. You must fulfill national and state standards for appraisal courses, experience, and college-level education in order to do so. Because many banks prefer to engage with certified home appraisers over licensed residential appraisers, you’ll be more marketable once certified.
Meet the following extra qualifications to become a qualified home appraiser:
- Curriculum: Certified home appraisers must complete at least 200 hours of AQB-approved appraisal courses, which includes prior coursework.
- Certified residential appraisers must have a minimum of 1,500 hours of experience as an appraiser or appraisal trainees over a period of at least 12 months.
- According to The Appraisal Foundation, certified residential appraisers must have a bachelor’s degree, an associate’s degree, or 30 hours of college-level courses, or a combination of the three. Contact your state’s agency to learn more about how they’re implementing new rules and what you’ll need to do to comply.
You may evaluate one- to four-unit residential structures of any complexity or value as a qualified residential appraiser. You may also assess undeveloped or unoccupied property that is used or best suited for one to four residential units. Additional certificates are required to evaluate unoccupied or unimproved property suitable for more than four residential units.
What Are the Advantages of Becoming a Certified General Appraiser?
Certified general appraisers are also available to appraisers. There are no restrictions on the types of real estate you may evaluate as a licensed general appraiser. The AQB needs a minimum of 300 hours of qualifying study and a bachelor’s degree or higher to get this certification. In addition, professionals must complete a minimum of 3,000 hours of fieldwork in no less than 30 months, including at least 1,500 hours of nonresidential experience.
Frequently Asked Questions
Do home appraisers make good money?
A: Home appraisers typically stay in the field for five to ten years before they have a chance at making enough money.
