If you have ever dealt with buying or selling various types of property, you should be aware of what an appraiser is and their role in the process. If this job title makes no sense to you, but you are here, reading this blog post, this occupation must have intrigued you. Since the role of an appraiser is rather essential, it’s not that easy to enter and conquer this business straightaway. So, keep reading our article to learn about the six steps one should take if they are interested in becoming a demanded appraiser in the property market. And also frequently asked questions to dispel the rest of your doubts regarding this profession and the career path it implies.
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An appraiser is a specialist who provides a fair and unbiased financial evaluation of properties for sale. Appraisers often cooperate with mortgage creditors. Their main task is to provide the relevant market value of a property based on specific criteria, including the size of a building itself, the land area, the overall condition, income potential, and the location. There is a list of situations in which an appraiser might be involved:
No doubt, once you’ve heard about appraising, the first specialty that is highly likely to pop up in your mind is real estate appraiser. However, the list is hardly limited to this one. Check out other options within the appraising career path one may consider specializing in:
We’ve developed a six-step guide for those who don’t know what to start with but want to become licensed property appraisers.
In this field, without special education can not do. Firstly, a soon-to-be property appraiser has to take a 60-hour course on preliminary knowledge. The course normally comprises two big units: basic appraisal principles and procedures.
According to the Bureau of Labor and Statistics, property appraisers do have to acquire a degree after graduating from high school. Not only does it influence your chances of being hired, but also the level of remuneration. We have made up a list of related degrees that will help you to pave the way in real estate appraisal and build a career as a professional appraiser:
Practice makes perfect! That’s why practice learning experience is the first step in the Appraiser Trainee program. It includes 15 hours of Universal Standard of Professional Appraisal Practice or USPAP. Under no circumstances should you forget to keep records of your training hours – they are crucial for the completion. Each participant gets a so-called mentor, or an appraisal trainer, who is always there for you to help and clarify various subtleties of the job. A person can become an appraisal trainer only if they are federally classified as a licensed residential appraiser.
Besides this, there are other federal classifications for appraisers:
Having completed 15 hours of professional appraisal practice, you’re most likely ready to take the exam. The Appraiser Trainee Exam might differ from state to state, depending on state laws regarding real estate issues. After you pass the exam and log 15 hours of your Universal Standard of Professional Appraisal Practice, you become a lucky holder of the ‘Licensed Trainee Appraiser’ title in your state. This is the beginning of your bright future in property appraisal.
Of course, having accomplished 60 hours of introductory educational courses and 15 hours of USPAP, you will not stop and will strive to work without supervision. It would help if you moved beyond the ‘trainee’ stage to achieve that. For that, you’ll need to meet your state’s educational requirements. However, there are some similarities: classes on residential sales comparison, collecting data and writing reports, residential market analysis, and site valuation.
A standard Residential Appraiser license requires 1000 hours of practical experience to reach the next level. After you’ve become a Licensed Trainee Appraiser, you’re allowed to work under your mentor or manager’s supervision and guidance. Here starts the real journey! It may be complicated and stressful at the beginning, even overwhelming due to loads of new information. You should be ready, but, as the saying goes, the road by walking. And one more thing, you cannot forget to keep records of your apprenticeship hours – you are obliged to send the official log to your state as an integral part of the national certification program.
There are two exams to pass if you want to acquire official standard residential licensing:
Let’s focus on the NULC:
To clarify the issue thoroughly, we’ve answered 5 frequently asked questions about becoming a licensed property appraiser:
To become a licensed property appraiser, you don’t need a degree. Instead, you must accomplish at least a 30-hour semester at a higher educational institution for standard residential licensure. To become a certified general property appraiser, you need to obtain a college degree, like an Associate’s or Bachelor’s degree.
If we talk about the 30-hour semester at college, it usually takes one academic year. Regarding the Universal Standard of Professional Appraisal Practice and the 1,000 hours of working experience, it mostly depends on the person and the pace at which they are ready to work. However, there is a minimum time frame of six months to one year, depending on the state.
The average salary of a property appraiser stands at $62k per year. But generally, the range varies between $14,000 and $142,000 per year. The difference is due to the full-time and part-time employment and the license type.
TAF is the abbreviation for The Appraisal Foundation. It has been authorized by Congress as the official source for appraisal qualifications. Its primary mission is to protect the interests of consumers and the US economy. Visit their website to find all the necessary information about USPAP courses and updates on individual state regulations.
Yes, unfortunately, it can. At the national level, credentials should be renewed every two years. There is a special National USPAP update or refresher course. Besides that, keep in mind that states may also have their own standards for updating the appraisal license.