A real estate appraisal is a good field of work, which can bring you a good income. When you’re thinking about switching careers, it’s important not to settle for a field that pays less.
Real estate is a very lucrative field, and pretty much any job within the field pays well. It’s no surprise then that you chose this exact field.
Real estate appraisal can be fun and every job speaks for itself. It’s mostly office work, but it’s not as dull as many other office jobs.
Maybe you became interested because of the money or something else entirely – but you started looking into it. To become a real estate appraiser, there are a few things to take care of.
There are some exams and some practice with a certified appraiser – and the process can be rather long. Since it already takes a while, nobody wants to waste time and fail any exams.
But, what do you need to pass the exams and get the real estate appraisal license? What is there to know?
How to pass the real estate appraisal exam? Continue reading our article to find out!
What Does The Real Estate Appraiser Exactly Do?
A real estate appraiser makes a living by estimating the value of the property. Their job is to research the property and calculate the value for which the property can be sold.
Their job consists of inspecting the property thoroughly. They check out everything that could affect the price – quality of the build, anything that was damaged over time or certain circumstances, and so on.
There are two types of property – commercial and residential. Most people never dabble in commercial real estate.
Residential real estate mostly consists of houses, apartments, and apartment buildings. All in all places meant for living in.
Commercial real estate is a little different. These places are intended for businesses. So, we’re thinking of office buildings, factories, land, and so on.
Real estate appraisers usually only work with residential or commercial real estate, rather than working in both branches. The reason behind that is that there is far more work in residential real estate
On the other hand, a real estate appraiser can earn far more in commercial real estate than residential. That’s why both branches gained a certain popularity.
In our opinion, it’s never a bad idea to start working towards a real estate appraisal degree. Real estate appraisers are always needed and it seems like there aren’t enough appraisers in the whole US.
Real estate appraisers can work with a lending company, a government agency, or they can work as an independent contractor. If you ask us, an independent contractor is a way to go.
If you choose to work on your own, you can organize your time better and maintain a better volume of work. If you feel like working more this week, you can choose to do so, and work less the next one!
Reasons Why Would Someone Need An Appraisal Done
First of all, there isn’t one unique reason why would a person require an appraisal. In reality, there are a lot of things that would require one.
For example, most frequently people need an appraisal for loans. Lending institutions need an appraisal so they can figure out the size of the loan that can be approved. Usually, loans are approved for an amount of money that is less than the worth of the property.
There is also an appraisal for tax purposes. This is often the reason, too, as an official real estate appraisal has to be done to determine the level of taxation.
Also, the appraisal can be done for dividing assets. This is usually during divorce proceedings, but it can happen in other cases, too.
Can a real estate agent work alone? Is it a bad idea? Read our article to find out!
Types Of Real Estate Appraisal Report
When the appraiser is determining the value of your property, they have to take into account a lot of factors. The appraiser will often compare the property to other, similar properties in the area.
When a person needs an appraisal report, they will have to state the reason why they need such a document. Based on this reason, the appraiser will choose to complete a report.
There are three formats of appraisal reports – so let’s check them out:
|Self-contained reports||A complete description of all the information and analyses usedA broad range of information includedThe most expensive type of report|
|Summary reports||Summarized data and analyses usedAdditional data found is not included in the report|
|Restricted-use report||No summarized data, only the conclusionShortest type of reportsThe most affordable type of report|
How To Pass The Real Estate Appraisal Exam?
Well, there are some things to know before you decide to start working towards a license. First, some restrictions may stop you from becoming a real estate appraiser altogether.
These restrictions may vary from state to state, but some are universal. Before you begin working towards the license, you must remember that you need a completed bachelor’s degree before you start.
Next, you have to remember that becoming a real estate appraiser may be a great career choice, but it takes a lot of time. You need a lot of time and even money before you become a real estate appraiser. The shortest amount of time is still more than a year.
The time is based on the type of license you’re hoping to acquire. Let’s check them out;
- This is the ‘license’ you will get once you complete some part of the work. To become a trainee appraiser, you’ll need to complete:
- 75 hours of coursework and
- 15 hours of National USPAP course.
- This is the entry level position in the real estate appraisal world, there is no experience required to become a trainee. Do note that not all states recognize this position, though.
Licensed Residential Appraiser Or State Licensed Appraiser
- A licensed residential appraiser can complete an appraisal on a state level. There are a few restrictions, though.
- A state licensed appraiser cannot appraise non-complex residential property with a value over a million dollars. Also, they cannot appraise complex residential property with a value under a quarter-million dollars.
- To become a licensed residential appraiser, you need to:
- Complete 150 hours of state-required coursework
- 15 hours of National USPAP course
- Pass an AQB (Appraiser Qualifications Board) Licensed Residential Real Property Appraiser exam
- 1,000 hours of experience.
- Also, the 1,000 hours required cannot be finished in less than 6 months. The whole process of becoming licensed takes a little more than a year.
Certified Residential Appraiser
- A certified residential appraiser can complete all appraisals at the state level. On a federal level, they can complete an appraisal only if it meets the criteria listed:
- Complex and non-complex units with no restrictions when it comes to the transactional value and
- Any type of property that has a value under a quarter-million dollars.
- To become certified, you need to complete:
- 200 hours of state-required coursework
- 15 hours of National USPAP course
- Pass an AQB (Appraiser Qualifications Board) Certified Residential Real Property Appraiser exam
- 1,500 hours of experience.
- Do note that the hours of experience cannot be completed in less than a year. The whole process takes around a year and a half.
Certified General Appraiser
- To become a certified general appraiser, you need a lot of work, a lot more than to obtain any other appraiser license. However, there are benefits to it – naturally.
- A certified general appraiser can appraise any and every type of property. There are no restrictions on this type of license!
- To become a certified general appraiser, you need to complete:
- 300 hours of state-required coursework
- 15 hours of National USPAP course
- Pass an AQB (Appraiser Qualifications Board) Certified General Real Property Appraiser exam
- 3,000 hours of experience of which 1,500 hours have to be completed with the non-residential property.
- The hours of experience cannot be completed in less than a year and a half. The whole process of becoming certified takes around two to three years.
Can a real estate agent also be an appraiser? Read our article to find out!
How To Pass The Real Estate Appraisal Exam – Conclusion
To conclude, passing the real estate appraisal exam isn’t exactly easy. It pays off, and thankfully, there are a few licenses to choose from.
If you don’t have a lot of time to spend working towards a license, you can pick one of the easier, less time-consuming ones. However, if you want to complete reports for any type of property, you will need a general appraisal license.
It takes more than two years to obtain this license, but there are no properties unavailable for the appraisal for you! This is the license we recommend you get.
After all, many appraisers decide to obtain a general appraisal license later in life because they need it. It’s the shorter route if you decide to get it now – so, what are you waiting for?