If you work in the real estate industry or if you’ve ever bought or sold a home, you may be familiar with home appraisals. A career in real estate appraisal can be rewarding, but you need to understand the requirements to become a real estate appraiser before proceeding.
Although exact requirements vary from state to state, here are some general requirements and steps to follow to become certified as a real estate appraiser.
— What does a real estate appraiser do?
— Real estate appraiser salary.
— How to become a real estate appraiser.
— Review the minimum requirements in your state.
— Become a trainee appraiser.
— Find a mentor.
— Complete required real estate appraiser coursework.
— Register for the Licensed Residential Exam.
— Submit your application to become a licensed residential real estate appraiser.
[Read: How Much Does It Cost to Sell Your Home?]
What Does a Real Estate Appraiser Do?
The role of the real estate appraiser is to provide unbiased and impartial opinions about the value of a property. An appraisal is typically performed before a property is sold, mortgaged, taxed, insured or developed.
Real estate appraisers specialize in a certain type of real estate, like commercial or residential. When estimating a property’s value, appraisers will look at market trends, sale prices of similar properties, physical condition and other factors, explains Phillip Ethington, a certified residential real estate appraiser and CEO of Appraisal Den.
Real Estate Appraiser Salary
The national average base salary for a real estate appraiser in the U.S. is $60,949 per year, according to Payscale as of Feb. 25. The range of reported salaries is from $39,000 per year to $104,000 per year. This doesn’t include any bonuses, profit sharing or commission. A real estate appraiser’s salary also depends on location, licensing and level of experience in the field.
“Real estate appraisal can be lucrative and exciting, but there are also drawbacks to consider, including long hours and high competition among real estate appraisers in most areas of the country,” explains Ethington. “Many appraisers own their own professional service company and find they can be working over 50 hours per week. If this doesn’t sound like your goal, don’t worry! There are plenty of jobs working for larger firms as a staff appraiser.”
[See: 15 Secrets to Selling Your Home Faster.]
How to Become a Real Estate Appraiser
The process to becoming a real estate appraiser involves education and on-the-job experience. While requirements vary by state, here are the main steps to becoming a real estate appraiser:
Review the Minimum Requirements in Your State
The Appraiser Qualifications Board sets national course requirements, or the Real Property Appraiser Qualification Criteria, that appraisers must meet. However, the necessary training to earn a real estate appraisal license varies by state.
“Individual states have their own set of requirements and regulations that govern real estate appraisers in their state,” Ethington states. “All 50 states require real estate appraisers to hold some sort of license or certification, but each has different rules about what’s required for licensure.”
Each state and territory must meet or exceed the minimum requirements set by the AQB. “California exceeds the minimum criteria. For example, California also requires a four-hour Federal and State Laws and Regulations course,” says Monica Vargas, deputy director of communications at the California Department of Consumer Affairs.
There are also multiple license types, such as Licensed Residential Appraiser, Certified Residential Appraiser and Certified General Appraiser, Vargas notes. Each license has education, experience and exam requirements that must be met.
Aspiring appraisers can check out their state’s real estate licensing board for more information about obtaining a license.
Become a Trainee Appraiser
Aspiring real estate appraisers must first become an appraiser trainee. Appraiser trainees are under direct supervision by a certified appraiser and are required by the AQB to take the following courses:
— Basic Appraisal Principles (30 hours)
— Basic Appraisal Procedures (30 hours)
— National Uniform Standards of Professional Appraisal Practice (15 hours)
Your state may require additional coursework, so it’s important that you consult with your state’s appraiser regulatory agency. Ethington notes these classes are available online in all 50 states.
Find a Mentor
“After completing the courses, an aspiring appraiser must find a supervising appraiser to train under for anywhere from six months to two years, depending on state requirements,” says Ethington.
According to the AQB, supervisors are responsible for the training, guidance, education and experience logs of their trainees. Each state has its own log, as well as how often the log must be signed, who should retain the log and how the log will be completed.
The supervisory appraiser accompanies the trainee on inspections. Some states have their own set of rules requiring a minimum number of property inspections or requiring the supervisor to inspect all properties with a trainee.
[READ: Why You Should (and Shouldn’t) Sell Your Home in 2022.]
Complete Required Real Estate Appraiser Coursework
Depending on your state, you may need to either take additional AQB-approved coursework, state-specific training or college-level classes. The curriculum focuses on real estate valuation, contract law, property management and other relevant topics, explains Ethington.
Having a degree isn’t typically necessary. “Licensed appraisers often are not required to have a four-year degree as long as they satisfy other education requirements,” notes Ethington.
However, Vargas says that the California Bureau of Real Estate Appraisers does require a four-year college degree with certain license levels. “Certified General license level requires a bachelor’s degree or higher from an accredited college or university.”
Check with your state’s appraiser regulatory agency to determine if you’ve met all state and national requirements.
Register for the Licensed Residential Exam
The next step is to contact your local state advisory board to register for the Licensed Residential Exam. All state-licensed and certified appraisers must successfully pass the exam, which is administered by your state or territory.
The Licensed Residential exam consists of 110 questions and must be completed within a four-hour period. It’s also important to note that the exam may be difficult to pass the first time. According to The Appraisal Foundation exam statistics for 2021, the national first-time pass rate for the Licensed Residential exam was 61%.
Submit Your Application to Become a Licensed Residential Real Estate Appraiser
Once you’ve passed the exam, you must submit your license application to your state licensing board. As a licensed real estate appraiser, you begin applying to real estate appraisal jobs.
Your appraisal license also needs to be renewed every two years. “Your renewal is based on two things: how many hours you’ve completed in appraisal education during that period and how many hours you worked as an appraiser in that period,” explains Ethington.
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How to Become a Real Estate Appraiser originally appeared on usnews.com
