Real estate appraisers create trusted valuations that lenders, tax assessors, government agencies, businesses, and individuals can use to make transactional decisions. Appraisers are highly trained and certified professionals who understand the nuances of assigning a financial value to real property. If you’re interested in pursuing a career as a real estate appraiser, this is what you should know.
What Real Estate Appraisers Do
Real estate appraisers are objective third-party professionals various entities hire for their expertise. They spend their days collecting and analyzing details about the real estate market and individual properties to create accurate valuations. The majority of real estate appraisers work normal business hours, and licensed appraisers can earn anywhere from $35,000 to more than $80,000 per year. The Bureau of Labor Statistics expects national employment in the field to grow and add several thousand new jobs over the next 5-10 years.
Appraisers must understand local zoning laws, safety and health codes, environmental issues, building codes, and other factors that can affect the total value of a property. They may specialize in residential, commercial, or agricultural appraisals and earn varying levels of licensing and certification. Some choose to work in-house with organizations as appraisal reviewers and independent appraisers. Appraisers may work for themselves, as part of an appraisal management company, with tax assessors’ offices, at financial institutions, or with other organizations in need of appraisal services.
Why Professionals Become Appraisers
A real estate appraiser career can be very liberating for professionals who do not want to spend their days cooped up in an office or working for commission. Instead, many appraisers enjoy a certain level of freedom and independence. They must travel to various properties in the region to conduct their appraisals. Each appraisal may take an hour or more. During that time, an appraiser may get to know the property owner or a client better.
After the leg work, appraisers may spend hours or days in the office. They must use their analytical and research skills to find data on the property and compile information for the final report. The career provides balance between office and field work and often gives professionals an incredible work-life balance, too. An appraiser can choose to work in rural or urban environments. In heavily populated areas, appraisers serve as some of the most influential and trusted real estate professionals around.
As long as property changes hands and local governments impose property taxes, appraisers will have their work cut out for them. If you want a dynamic, challenging, and flexible career, real estate appraising will serve you well.
Pursuing a Career as a Real Estate Appraiser
Prospective appraisers must meet minimum education requirements to earn a real estate appraisal license. State licensing boards will accept an associate’s degree, undergraduate degree, or proof of 30 semester credits. You can earn your post-secondary education before you become a trainee or while you complete trainee-level requirements. Coursework in business, English, mathematics, and real estate will all support your goal of becoming a licensed real estate appraiser.
All appraisers start out as Trainee Appraisers. To gain this status, you must complete a minimum amount of coursework covering appraisal principles, procedures, and standards. Individuals must also complete a supervisor/trainee class to become a Trainee Appraiser.
As a Trainee Appraiser, you must log 2,000 hours of experience under appropriate supervision. Trainees are responsible for finding their own supervisors, which can be a daunting task. You may need to network heavily in the field to find certified real estate appraisers willing to take on a trainee. Look into opportunities at financial institutions, residential appraisal companies, and on online job boards. You may find opportunities using job search capabilities on LinkedIn, Indeed, and Monster Jobs.
Build your supervisor pitch on how you can bring value to the relationship. Appraisers often prefer to work with trainees who can provide marketing, research, and other value-added services.
Trainees must take additional coursework, pass a state real estate appraisal exam, and apply for licensing to become a licensed residential appraiser. Course hours and exam structures vary slightly from state to state. Beyond basic residential appraisal licensing, many appraisers go on to earn specialized certifications. Certified appraisers develop the skills needed to appraise many different types of properties without limitation.
Traits of Successful Real Estate Appraisers
Licensed real estate appraisers must go above and beyond report building to stand out in the industry. Successful real estate appraisers are professionals who:
- Can work off the cuff. Some appraisals start out with a given value appraisers must verify. Others require appraisers to start from scratch. Only an appraiser who truly understands the industry, the market, and appraisal standards will develop an accurate appraisal value.
- Demonstrate incredible professional integrity. Inaccurate appraisals and unethical appraisal tactics can ruin an appraiser’s reputation. Successful appraisers are honest, ethical, and trustworthy.
- Are detail-oriented. Appraisers need more than estimations and opinions to develop accurate appraisals. They must investigate and retain detailed information to build an accurate appraisal report.
- Can write. Appraisers communicate with clients via email and develop written reports that may span dozens of pages. Successful professionals know how to craft clear and objective descriptions for any project.
- Are personable. Most appraisers work outside of the office as much or more than they do inside the office. While onsite and in the community, an appraiser needs to demonstrate an affable demeanor to glean valuable information and maintain his or her professional reputation.
- Can self-motivate. Clients expect a reasonable turnaround for property appraisals. Licensed appraisers should know how to manage their time accordingly and finish projects in a timely manner.
A career as a real estate appraiser can be both challenging and rewarding. Appraisers must learn to juggle a variety of skills to deliver great customer service and reliable appraisals while using the best tools avaiable. The job isn’t for everyone. Successful appraisers must constantly learn and adjust to market conditions to deliver value to their clients. Individuals who expect to merely conduct walk-throughs and fill out forms may not find the career path as rewarding as those who dive into the complexities of the field.
Real estate appraisal can serve as a successful primary or encore career. If you already have a professional background in real estate, finance, or a related field, you may appreciate the change of pace that comes from earning your real estate appraisal license.
