An appraisal is one of the most important processes when investing in a real estate property. Professional real estate appraisers who possess the needed experience and education are the ones who conduct appraisals. Appraisers use official criteria to estimate the value of a commercial or residential property in the real estate market. Appraisers’ tasks also include ensuring that the appraisals and data related to them are updated on a regular basis. Mashvisor can provide you with more information regarding real estate topics, like appraisals and how they work. So, do not hesitate to visit our site to find answers to your questions and more.
Related: All You Need to Know About House Appraisal and Its Benefits
What Are the Real Estate Appraiser’s Skills?
The road to appraisal success includes certain skills acquired by the real estate appraiser. Customers look for appraisers who are reliable and professional in all aspects of the appraisal process. If you are looking forward to a career in real estate appraisal, you have to be objective and trustworthy. Apart from these important personality traits, a real estate appraiser must possess the following skills:
- Analysis: When estimating the value of a real estate property, the appraiser must dedicate time to research. Thus, it is important to be able to analyze all the data related to the property and the real estate market status.
- Organization: As a real estate appraiser, you are going to be bombarded with loads of information and data on different properties, so it is important to keep your records well organized. Keep a separate file for each property as well as for different sets of data and sources.
- Time Management: Deadlines, deadlines – they are important to keep you motivated and on track. You should take your real estate appraisals deadlines seriously because they help you manage and submit your appraisal on time.
- Writing: The real estate appraiser should have the ability to write a property’s description very well and in an objective way. Appraisers are required to provide reports on the properties they are hired to appraise; therefore, an appraiser must learn how to write in a neat and descriptive way.
- Math: It is important for an appraiser to be numbers-friendly as you will need to deal with figures and analysis of numeral data. Your mathematical abilities should include calculating the square footage of the property or the land you’re appraising, in addition to converting units of measurement like square feet and acres.
- Problem-Solving: Before you become a real estate appraiser, you will go through required hours of training. During that time, your supervisor will draw your attention to the problems often faced in real estate appraisals, and the skills you need to solve them. In all aspects of life, things do not go 100% as planned; it is necessary to expect the worst in order to know how to quickly resolve issues when they arise.
- Customer Service and Communication Skills: Finally and most importantly, you have to please your customers. As a real estate appraiser, you will always work with new people. Therefore, it is important to have good communication skills with your customers and landlords.
Required Education:
One does not simply become a real estate appraiser!
To become an appraiser, you need to possess the education needed for this career. All states require that appraisers take certain hours of training and college degrees that qualify them to become professional appraisers. The procedures might be long, but if you’re interested enough, you will not find them hard.
Required Training and Trainee License:
Before you indulge in any career, you need an amount of training that gives you a general and specific idea about the nature of your job and tasks. Real estate appraising is not different. According to the Appraiser Qualifications Board (AQB), here are the minimum courses hours required to become a trainee appraiser:
- 4 hours of supervisory/trainee class that educates you on the responsibilities of the trainee and the supervisor along with their relationship.
- 60 hours of basic appraisal principles and basic appraisal procedures, divided into two courses; each course covers 30 hours.
- 15 hours on the universal standards of professional appraisal practice.
Total: 79 hours of training hours
After the completion of these courses, you will receive your training license and you will be ready to move to the next step – work experience.
Work Experience Under Supervision:
Now that you’ve completed your training, you can start to work as a real estate appraiser. It is worth mentioning that you still can’t work as an unlicensed appraiser without being under the supervision of a licensed real estate appraiser. In one year, you need to finish 2,000 hours of work experience under the supervision of your mentor/supervisor. You are only allowed to appraise the properties your supervisor can appraise. Your working hours are registered by the supervisor.
If you’re working as a certified real estate appraiser’s assistant, you will be assisting your supervisor in appraising properties and collecting data and calculating figures. The final value of the house will be determined by your certified supervisor, and the report will be signed by him/her as well with your name mentioned in the report along with the exact tasks you’ve conducted.
Skills like web design and marketing can also help you score a job as an unlicensed real estate appraiser. So, make sure you mention these skills while contacting or meeting with possible employers
Where to Gain Work Experience?
Banks and residential appraisal companies are two of your main targets as an unlicensed appraisal looking for work experience. These two have the most offers and needs for appraisal services. You can contact lenders or appraisal firms to find out if they have any vacancies in appraisers positions. Also, you can search for vacancies through the American Society of Appraisers Job Bank.
Bonus: Residential Real Property Appraiser Exam:
The residential real estate property appraiser exam is an important step to pass in your journey as a future residential appraiser. The exam usually includes but is not limited to the following:
- Legal issues.
- Real estate markets.
- Types of property values.
- Figures and statistics.
Familiarize yourself with information about the residential properties exam by visiting this page that gives you details based on your State.
Related: Why Is Real Estate Market Analysis So Important?
License Application and Limitations:
After completing your required hours of education, work experience and exam, you can submit your application to get your license. Becoming a licensed real estate property appraiser allows you to start your work as an appraiser. Find more information about the application here.
However, because you’re still not a certified appraiser, you can only appraise non-complex residential properties that are worth less than 1 million dollars and non-complex residential properties that have the value of less than $250,000.
Therefore, your next bigger step is to become a certified real estate appraiser.
Become a Certified Residential Appraiser:
You have to gain years of work experience as a licensed residential appraiser before you apply to become a certified residential appraiser. Your opportunities to work with banks, for example, become higher as a certified appraiser. This is due to the fact that you will have a bigger range of appraisal work and transactions, as certified appraisers are allowed to appraise properties that are valued more than $1,000,000.
These are the requirements for a certified residential appraiser:
- A bachelor’s degree: It can include courses on business, finance, economics, computer science, and real estate law.
- A certain amount of work experience: 2,500 hours of work in the field in a period of time that does not exceed 1 year.
- Additional requirements include already mentioned coursework hours: 200 hours of AQB-approved courses. In addition to the course work, you have to do to gain your appraiser’s license, you need to do extra 46 hours of coursework to qualify for a certified appraiser’s license.
How Much Does a Residential Appraiser Make?
According to Salary.com, the median annual salary for US residential real estate appraisers is $51,375, as of August 2017. However, not all appraisers make the same salary, as there are various factors that determine the salary of a residential appraiser. To find more about the topic, visit this page.
Related: 3 Ways to Make Money with Creative Real Estate Investing
Bottom Line:
A career as a real estate appraiser can be a good choice financially. A key to success in this field is to never stop educating yourself in real estate matters. Mashivor can provide you with a variety of topics that can help you master the essentials of this field. Remember to be flexible and willing to learn a new thing every day.