Real Estate Jobs: How to Become a Real Estate Appraiser

A real estate appraiser is a licensed real estate professional that appraises the fair market value of residential properties. This third-party professional is often hired by a real estate broker, agent, or financial institution to appraise the value of a home for lease negotiations, mortgage lending purposes, and tax assessments. Real estate appraisals are performed to determine an estimated valuation of a property based on a property’s condition and comparable sales prices of similar properties in the neighborhood.

Appraisers will perform a combination of fieldwork and research on a particular residential property. They will do a site visit to assess the condition of the home, the square footage, and the number of bedrooms and bathrooms. They will also research the market prices of comparable homes in the area to perform a competitive market analysis. In order to become a certified general appraiser, you have to meet the appraiser qualifications, amass the required work experience, complete all pre-licensing courses, take an exam, and apply for licensing from your state.

A real estate appraiser is hired by a homeowner, real estate agent, or realtor to perform a property appraisal. The property appraiser then shares the final value estimate with whomever ordered the appraisal so that they may negotiate a sales price or determine a mortgage agreement.

A real estate appraiser often relies on a comparative sales approach to assess the state of the relevant real estate markets. This means that they will examine the comparable sales of similar properties, which are often called “comps,” and adjust for extenuating factors in the market that may affect the value of the house. The appraiser will also visit the house for an on-site appraisal.

A real estate appraiser makes note of the following elements of a house, which can contribute to or detract from its value:

• Square footage
• The physical condition of a home (including appearance, cracks, water damage)
• The structural integrity of the home
• Quality of landscaping around the home
• Added value amenities like pools, fireplaces, lighting, plumbing, and premium materials like hardwood floors or countertops.
• The number of bedrooms and bathrooms.

Each state has different requirements and coursework to become a real estate appraiser. Here is an overview of the general process to get your residential real estate appraiser license.

1. 1. Confirm you meet the minimum requirements. Before you get started, check to see whether you meet the minimum criteria for becoming a licensed real estate appraiser. Requirements can vary state by state, but typically you will need to be at least 18 years of age, have a valid social security number, and be a legal citizen or have a valid working visa. Other than a high school diploma, there are no higher education requirements before you begin your appraisal education and coursework.
2. 2. Become a trainee appraiser. State requirements may vary for approved courses, but you will most likely need to start your journey to becoming a real estate appraiser as a trainee. To do that, you need to complete the necessary appraising coursework to learn the fundamentals of the job. Specific classes may differ depending on where you live, but you will learn the basic appraisal procedures, principles, and standards of practice in this stage.
3. 3. Find an appraiser to supervise your hands-on experience. After you've finished the required trainee coursework, you are officially a trainee. Now, you need to fulfill the appraisal experience requirements with a supervisory appraiser. You will get hands-on experience with residential report writing and case studies. Many states will require you to complete 1,000 hours of experience with a mentoring real property appraiser, but make sure that you understand how much you will need.
4. 4. Fulfill qualifying education and take the licensed residential appraiser exam. In order to practice on your own, you will need to complete the professional-level coursework to become a licensed residential appraiser. The courses may vary, but you will be learning intermediate appraisal concepts like market analysis, valuation methods, the types of real estate and their values, and appraisal math. When you have completed your coursework and 1,000 hours of work with your supervisory appraiser, you will be eligible to apply for your state’s licensed residential appraiser exam which will test everything you have learned so far.
5. 5. Apply for your license to become a certified residential appraiser. Once you pass your exam and meet all the licensing requirements, you can apply to become a certified residential appraiser with your state licensing board. If you become a licensed appraiser, you are allowed to practice appraisals on any kind of property that has one to four residential units, is non-complex (or non-specialty, like a historic property), and has a transaction value less than $1,000,000. Now, you can practice on your own or work for a number of appraisal management companies. You can continue your education and apply for a higher license level to appraise more complex properties, but becoming a licensed residential appraiser is the minimum level at which you are eligible to practice on your own.

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