Real estate is one of those lucrative career fields. What’s fun about it is that your earnings depend solely on how much you’re willing to work for it.
Various jobs fall into the field of real estate. All of us have heard about real estate agents and usually, real estate appraisers.
The most common time when people come in contact with a real estate appraiser is during the purchase or sale of their home. For the first time, it sparked your interest.
You thought that being a real estate appraiser could truly be fun. However, you don’t have much information on the earnings of an average appraiser.
What are the average appraisal fees, anyway? How much can a real estate appraiser even earn in a month?
What do the average appraisal fees depend on? We did the research and found out all about it. Continue reading to find out all about the average appraisal fees!
What Does An Appraiser Exactly Do?
A real estate appraiser has a job to estimate the value of the property they are hired to appraise. Their responsibilities are to inspect the property and assign property value correctly.
As we already mentioned, most people only come in contact with residential appraisals. When you’re moving homes, you will likely need a residential appraisal on your property.
However, there are commercial appraisers, too. Commercial appraisals are done on commercial property. Commercial property is meant for businesses, and not for living in like residential places.
Commercial property usually consists of office buildings, factories, land, offices, and similar property. Commercial appraisers are less common because they are less needed. If you want to read up more on commercial appraisals, read our article here.
To become a real estate appraiser, you need to get a license, and you need to fulfill a lot of requirements to become one. From start to finish, you need at least a year to receive your license. However, the whole process can take more than three years, depending on the license you’re working on.
Many real estate appraisers choose to work with only residential appraisals. It can be tough to keep track of both markets – residential and commercials. Also, they choose not to obtain the license for commercial appraisals because it takes twice as much time to earn!
Real estate appraisers don’t receive a fixed salary each month. They are paid a fee for each job they finish for their client.
Appraisers can work in a variety of workplaces, meaning they can choose where they can work. Appraisers can work for lending institutions, government agencies, appraisal companies, or they can work as independent contractors.
Working as an independent contractor is still the best way to work as an appraiser. You can choose your work, and you can organize your time better. You can work more when you have the time, and lessen the number of hours when you’re dealing with other things.
Becoming a real estate appraiser is never a bad idea if you’re US-based. It seems like there are never enough appraisers all around the country. It doesn’t matter what state you’re in, it’s not likely you will ever run out of work as a real estate appraiser!
You may have looked into home inspection, as well. It could be fun to work as a home inspector, but you have to read up more on the subject. Read our article to see the pros and cons of working as a home inspector!
Why Would Someone Need An Appraisal?
- There are various reasons why would someone need an appraisal done. The most common reason why is because the loan application requires one to be done.
- Loans are approved for a sum of money at least 20% less than what’s the property worth. This way, the lending institution ensures that they don’t risk losing money by approving this loan.
- Also, appraisals are done for tax purposes. Government agencies can also request an official appraisal to be done to establish the level of taxation.
- One of the most common reasons is during dividing assets. Dividing assets is usually a part of divorce proceedings.
- The appraisal process starts when the appraiser estimates the size of the job. Then, the appraiser requests some information and documents they need to estimate the value.
- After that, the appraiser does a thorough inspection of the property. The inspection will reveal the quality of the build, and the current condition of the property.
- Those things affect the price the most, but the appraiser will use one or more methods to calculate the value to get the optimal estimate. When they do, the appraiser will write a report and give it to the client.
Average Appraisal Fees For Every Type Of Appraiser
There are a few different types of real estate appraisers. Depending on the license you obtained, you will receive a different fee for the job well done.
Every license is different, depending on the education and the field the appraiser can work in. so, let’s talk about appraisers, their licenses, and fees:
- The person will become a trainee once they complete some part of the requirements for a license. To become a trainee, you will need to fulfill:
- 75 hours of coursework
- National USPAP course – 15 hours.
- This is the entry-level appraiser, there is no experience needed. You will receive between $50 and $150 for each job you finish. Do note that this position is not recognized in each state in the US.
Licensed Residential Appraiser
- A licensed residential appraiser is a level-up for the trainee appraiser. They can complete appraisal reports on a state level, with a few restrictions. They cannot appraise non-complex residential property if the value is over a million dollars. As for the complex residential property, they cannot appraise places that are worth under $250,000.
- To obtain a license for a residential appraiser, you will need to:
- Finish 150 hours of coursework
- Finish 15 hours of National USPAP course
- Pass a licensed residential property appraisal exam
- Complete 1,000 hours of experience.
- The fee costs usually fall in the price range between $200 and $350. On the other hand, the fee can go as high as $400.
Certified Residential Appraiser
- The certified residential appraiser has fewer restrictions than a residential appraiser – they can complete all kinds of appraisals on a state level.
- On a federal level, they are met with several restrictions. They can appraise any type of property if it’s worth under $250,000. On the other hand, they have no restrictions when it comes to transactional value for both complex and non-complex property.
- To become a certified residential appraiser, you will need to:
- Complete 200 hours of coursework
- 15 hours of National USPAP course
- Pass a certified residential property exam
- Finish 1,500 hours of experience.
- Certified residential appraisers are needed more than residential appraisers or trainees. That’s why their fees are significantly higher.
- The lowest fee for a certified residential appraiser is $500, and on average, it goes up to $750. Do note that the price can go up in certain circumstances!
Certified General Appraiser
- To become a certified general appraiser, it will take a lot more time to obtain the license. Of course, being a general appraiser has certain benefits other licenses do not, so in the end, it pays off to work for 3 years to get the license!
- This is the only license that has no restrictions when it comes to different types of property. Certified general appraisers can appraise any property, anywhere!
- To get the license, you would need to:
- Finish 300 hours of coursework
- Finish 15 hours of National USPAP course
- Pass a certified general property appraisal exam
- Complete 3,000 hours of experience, of which at least 1,500 hours have to be done appraising commercial property
- The average fee for a certified general appraiser is $1000. The price can vary, and it can go higher for certain types of property like office buildings or factories.
Average Appraisal Fees – Conclusion
To conclude, average appraisal fees vary mostly on the type of appraiser. The more work has an appraiser put to get the license, the fee tends to cost more.
Also, the price depends on the type of report the appraiser is hired to write. More thorough reports tend to cost a lot more!
The fee is usually based on the type of property, too. The fees may seem high, but the appraiser has certain costs they cannot cut.
Appraiser membership fees, software licenses, and various services can cost the appraiser thousands of dollars annually. To cover the costs, the price of appraisals has to go up!