Real estate appraising can be a very rewarding profession. It is one of the most important processes when investing in a real estate property. However, in order to become a real estate appraiser, you have to know what it is and what to consider before diving into this career path.
A real estate appraiser estimates the value of a single building or piece of land. The job of a real estate appraiser is similar to that of an assessor. Unlike an appraiser, an assessor considers the values of several properties at once. A real estate appraiser may specialize in either commercial real estate or residential real estate. He/she is called upon to appraise a property before it is sold, taxed, developed, or mortgaged. The real estate appraiser analyzes the property compared to comparable properties and observes its characteristics and the characteristics of the location.
Related: Real Estate Market Analysis vs. Home Appraisal: What’s the Difference?
So how does one become a real estate appraiser? What is the required real estate education and what skills does a real estate appraiser possess? All these questions and more will be answered throughout this blog so stick around and get ready to learn.
Related: How to Become a Real Estate Appraiser
How to Become a Real Estate Appraiser
Step #1: get the right education
- Get 75 hours of basic appraisal education
A person doesn’t just become a real estate appraiser overnight. Your first step to getting the right education is completing your real estate appraiser apprenticeship which is typically 75 hours of basic appraisal education. This coursework will help you focus on appraisal procedures and give you an introduction to universal standards of professional appraisal practice.
- Obtain a diploma relating to real estate
In some areas, completing your 75-hours is not enough to become a real estate appraiser. You will likely need to obtain a diploma related to real estate to become a licensed real estate appraiser.
Related: What Are the Most Important Aspects of Real Estate Education?
Step #2: get your license
- Learn the license requirements in your area
Licensing regulations sometimes change, so it’s best to check your area’s licensing requirements. Call your local licensing authority or check their website to learn more about their regulations and find out what sort of education and experience is needed to become a real estate appraiser in your area.
- Apply for the license you’re interested in
There are various types of real estate appraisal licenses to choose from. The types of licenses available in your real estate market will define which types of real estate you can appraise. You can, of course, apply for more than one license. Keep in mind that additional licenses might require additional educational requirements. Some of the most common licenses to choose from include state licenses, certified residential appraisal licenses, and certified general property appraisal licenses.
Step #3: develop professionally
- Join a professional organization
In order to successfully become a real estate appraiser, you need to allow yourself to network with other real estate appraisers. Join a professional organization like the Real Estate Appraisers Association. When you join a professional organization, you’ll be able to hear about all the latest developments in the world of real estate appraisal.
- Take on a variety of appraisal projects to gain more experience
The more experience you have, the more appealing your services and skills will be to people and businesses in need of real estate appraisal. Diversifying yourself with different projects will help you gain more experience.
Become a real estate appraiser with these skills
Not only do you need a bachelor’s degree and license to become a real estate appraiser, but you also need to possess the following skills:
- Listening Skills: In order to become a real estate appraiser, you must have the ability to listen. If you want to meet your clients’ needs, you need to understand what they are telling you.
- Critical Thinking: You must possess the ability to compare various alternatives when making decisions or solving problems. That is why having critical thinking skills is essential when you want to become a real estate appraiser.
- Verbal Communication: As a real estate appraiser, you must be able to clearly convey information to clients.
- Time Management Skills: You should take your real estate appraisal deadlines seriously. That is why having time management skills is a very important characteristic that you must have if you want to become a real estate appraiser. You should be able to manage your time wisely and submit your appraisal on time.
- Writing Skills: Every real estate appraiser should have the ability to write a property’s description very well and in an objective way. It is required from an appraiser to provide reports on the investment properties, so having writing skills is definitely important.
What to consider before you become a real estate appraiser
The whole purpose of this blog is to highlight some of the many challenges you may encounter on your journey to becoming a real estate appraiser. Here are some important things to consider before you become a real estate appraiser.
1. Finding a mentor is not easy
Finding a mentor can be a very difficult challenge for anyone thinking about becoming a real estate appraiser. Why? Well for one, any appraiser who decides to mentor a trainee is basically training his/her future competition. That is why so many appraisers refuse to mentor trainees. You may find a mentor who is willing to train you but he/she might offer you very little hourly pay and may actually be a bad appraiser who does sloppy work.
2. Obtaining Experience Hours Can take a very long time
Many states across the country have implemented a requirement where the experience hours to licensing could be obtained in no less than a 2-year period preceding the date of application. This is considered a very long time to be able to get hold of a license in order to become a real estate appraiser. That is why so many people second guess the idea of becoming a real estate appraiser even though this career choice is a great way to make money in real estate.
3. Fees can vary greatly by location
If you live in a large city and plan on becoming a real estate appraiser, then your fees received from appraisal management companies (AMC) may be much less than if you were to appraise in a smaller town or rural area. Why? The reason is simple. The fewer appraisers there are in a location, the less competition and the greater the fees. The more appraisers are located in your area, the lower your fees will be.
The bottom line
A real estate career as an appraiser can be a good choice financially. The key to successfully become a real estate appraiser is to never stop learning and educating yourself. Mashvisor can help you out by providing you with a variety of topics that will help you master the essentials of becoming a real estate appraiser as well as a real estate investor.
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