Introduction
If you’re looking for a stable, promising career with plenty of opportunity for professional growth, becoming a licensed real estate appraiser may be worth considering. Real estate appraisers provide vital services in the real estate industry, valuing properties for a variety of purposes, including mortgages, refinancing, selling, and more. In this article, we’ll examine the steps required to become licensed, explore the challenges and rewards of switching to a career in this industry, discuss what to expect in a typical certification course, examine 25 essential skills for success as an appraiser, interview an experienced appraiser for their insights, and provide tips for starting your own appraisal business.
5 Steps to Becoming a Licensed Real Estate Appraiser
Before you can become a licensed real estate appraiser, you’ll need to complete a series of steps required by most regions. Here’s an overview of those steps:
- Earn an undergraduate degree or complete the required coursework. Most states require a bachelor’s degree or the completion of specific courses in subjects like math, economics, and more. Check your state’s requirements to ensure you have the proper education.
- Complete an appraisal program. After satisfying educational requirements, you’ll need to complete an appraisal program. This can include classroom or online coursework and mentoring by licensed appraisers to gain real-world experience.
- Pass a state or national exam. After completing the appraisal program and gaining experience, you’ll need to pass a state or national exam to become licensed. Study for the exam by taking preparatory courses, reviewing study materials, and getting hands-on practice.
- Gain experience. To become a licensed appraiser, you’ll need to gain a specific amount of experience, usually around two years, under the supervision of a licensed appraiser.
- Obtain a license. Once you’ve satisfied education, experience, and exam requirements, you can apply for a license to become a fully licensed real estate appraiser.
Each state has slightly different requirements, so be sure to check your state’s specific requirements before beginning the licensing process.
Making a Career Change to Real Estate Appraising
Switching to a career in real estate appraising can be a rewarding choice, but it also presents unique challenges. Here are some tips for making the transition:
- Connect with other appraisers to learn more about the industry and get advice on training and education programs. Seek out local real estate appraiser organizations or trade groups to start building your network.
- Start building experience by offering to work as an appraiser’s assistant, or by accepting paid or unpaid internships or apprenticeships.
- Take advantage of online resources and social media, research appraisal companies in your area, and develop relationships with potential employers and clients.
- Consider taking entrepreneurship or small business courses if you plan to start your own appraisal business. These courses can help you develop the skills you need to manage your business and succeed as an entrepreneur.
It’s important to remember that while a career change can be challenging, it’s also an opportunity to learn new skills, meet new people, and develop a career that you find fulfilling and rewarding.
What to Expect in a Real Estate Appraisal Course
A typical real estate appraisal course covers a range of topics related to property valuation. Here are some common topics covered in these courses:
- Market analysis. Understanding market conditions is essential to valuing properties. In a real estate appraisal course, you’ll learn how to analyze market trends and conditions.
- Appraisal methods and techniques. Real estate appraisal courses also cover the different methods and techniques used in appraisal, including the sales comparison approach, the income approach, and the cost approach.
- Valuing property types. Different types of properties require different appraisal techniques. In a real estate appraisal course, you’ll learn how to appraise residential, commercial, and industrial properties.
- Communication skills. Real estate appraisers need strong communication skills to interact with clients, stakeholders, and other professionals. You’ll learn how to communicate effectively in your real estate appraisal course.
To succeed in a real estate appraisal course, it’s important to manage your time effectively, ask questions, review course materials regularly, and be open to collaboration with other students and instructors.
25 Essential Skills for a Real Estate Appraiser
Here are some essential skills for success as a real estate appraiser:
- Honesty and integrity. Real estate appraisers need to hold themselves to high ethical standards to ensure the accuracy and fairness of their valuations.
- Attention to detail. Valuations must be precise and accurate, so real estate appraisers must have keen attention to detail.
- Strong analytical skills. Analysis is at the heart of real estate appraisal, so appraisers must have strong analytical abilities to produce accurate valuations.
- Excellent communication skills. Real estate appraisers need to communicate effectively with clients, stakeholders, and other professionals.
- Strong written communication skills. Many real estate appraisal reports require detailed written analysis, so appraisers should have strong written communication skills.
- Computer literacy. Appraisal relies heavily on technology, so proficiency with computers and related software is essential.
- Time management skills. Valuations have deadlines, so appraisers must be able to manage their time effectively.
- Research skills. Real estate appraisers need to conduct thorough and accurate research to produce accurate valuations.
- Numeracy. Math is at the heart of real estate appraisal, so appraisers must have strong numeracy skills.
- Flexibility and adaptability. Real estate appraisal is a constantly changing field, so being adaptable and responsive to change is essential.
- Interpersonal skills. Real estate appraisers must interact with clients and stakeholders effectively.
- Enthusiasm for learning. Real estate appraisal is a constantly evolving field, so appraisers must be willing to learn new skills and techniques throughout their careers.
- Independence. Appraisers should be able to work independently and make decisions without supervision.
- Professionalism. Real estate appraisal is a professional field, so appraisers must be able to conduct themselves in a professional manner.
- Problem-solving skills. Real estate appraisal often involves complex problems that require creative solutions.
- Ability to work under pressure. Appraisers must be able to work under pressure and meet tight deadlines.
- Assertiveness. Appraisers must be confident in their valuations and be willing to defend their work with clients or other professionals.
- Strong verbal communication skills. Real estate appraisers also need strong verbal communication skills to present their work to clients, stakeholders, and other professionals.
- Ability to work in a team environment. Real estate appraisers often work in teams with other appraisers, inspectors, or other professionals.
- Organization skills. Real estate appraisal involves a lot of paperwork, so being organized is essential.
- Ability to manage multiple projects simultaneously. Appraisers often work on multiple projects simultaneously, so being able to manage them effectively is essential.
- Ability to interpret data. Real estate appraisers should be able to interpret complex data and draw accurate conclusions from it.
- Geographic knowledge. Real estate appraisers should have knowledge of the areas where they’re appraising properties.
- Stress management skills. The real estate appraisal industry can be stressful, so appraisers must have strong stress management skills.
- Emotional intelligence. Real estate appraisers should have the ability to read other people’s emotions and respond appropriately.
Real estate appraisers should be aware of these skills and work on developing them throughout their career. By mastering these skills, appraisers can provide exceptional service and build a successful career.
Interview with an Experienced Real Estate Appraiser
We sat down with an experienced real estate appraiser to get some insights into the industry:
- Q: What inspired you to become a real estate appraiser?
- A: I’ve always been fascinated by property values and what makes them tick, so becoming a real estate appraiser was a natural fit for me.
- Q: What does a typical day look like for you?
- A: A typical day involves conducting property inspections, analyzing data, preparing reports, and communicating with clients and stakeholders.
- Q: What advice do you have for aspiring real estate appraisers?
- A: Develop strong analytical and communication skills, engage in ongoing training and education, and be prepared to work hard.
- Q: What do you see as the future of the real estate appraisal industry?
- A: I think we’ll continue to see an emphasis on technological innovation, including more sophisticated software and automated valuation models.
By learning from seasoned appraisers, aspiring appraisers can gain valuable insights into the industry and learn how to succeed in this exciting field.
Starting Your Own Real Estate Appraisal Business
Starting an appraisal business involves risk, but it can also be highly rewarding. Consider these tips if you’re thinking of starting your own appraisal business:
- Market your services effectively. Develop a professional website, social media presence, and print materials to help market your services to potential clients.
- Develop strong relationships with real estate agents, lenders, and other professionals in the industry. Referrals are an important source of business for appraisers, so building relationships is essential.
- Build a strong team. If you plan to hire appraisers or other professionals, choose individuals with complementary skills who can help your business grow.
- Be prepared for the financial investment required to start an appraisal business. Appraisers need specialized software, tools, and equipment, so be prepared for startup costs.
While starting an appraisal business can be challenging, with the right skills and preparation, it can also be highly rewarding.
Real Estate Appraising in the Era of Technology
The real estate appraisal industry has changed significantly with the advent of new tools and technologies. Here’s what you can expect in the coming years:
- Automated valuation models (AVMs). AVMs are computer algorithms that use data to determine property values. They’re becoming more common in the industry, but their reliability is still a topic of debate.
- Drones. Drones are being used to conduct property inspections and gather data more efficiently and safely.
- Virtual reality. Some appraisers are using virtual reality tools to create 3D models of properties, allowing for more detailed and accurate valuations.
- Big data. The real estate industry is awash in data, from local market trends to zoning regulations. Appraisers who can effectively analyze and interpret this data will be more successful.
While these tools and technologies are exciting developments in the industry, it’s important for real estate appraisers to remain grounded in the basics of accurate and ethical valuation.
