A real estate appraising can undoubtedly get you a high salary income. A proper valuation is one of the most important things when buying or investing in property. But getting into the world of appraisal is not easy, and individual factors need to be fulfilled.
For the purpose of becoming a real estate appraiser, you have to have a specific education level, qualifications, and many hours of training. However, all of this is not an impossible task, and after all the learning and specializations, it just may be worth the risk.
So, you’ve been thinking of becoming a real estate appraiser for quite some time, but you’re still not sure whether to take this path. We totally get your concerns, as getting into the appraisal world automatically means you’ll be investing a substantial amount of your effort and time to receive an appraiser license in the end.
Thus, is a real estate appraiser a good career? Are real estate appraisers happy with their jobs? How much do they earn? What are the pros and cons?
Luckily for you, we conducted thorough research on this topic and got some valuable information to give you a clearer picture of the appraisal world. We’re ready when you are!
What Is A Real Estate Appraiser?
A real estate appraiser is a person that identifies and estimates the value of various types of property. It can be a building or a piece of land. This person is called to appraise a property before the belonging is mortgaged, developed, sold, or taxed.
A real estate appraiser analyzes the property, takes its pictures, measures it, and observes its characteristics. The significant thing which is also taken into consideration is the location of the property. The person that appraiser the property is usually aware of the climatic problems and other issues that might affect the property’s worth. But, since the parcel can’t change its location, the home’s improvements will often make the difference in value.
Unlike assessors, which can consider the value of several properties at once, a real estate appraiser can only value one property at a time. Their job is also to provide all the essential information and prepare a written report of the property’s value. A real estate appraiser can specialize in either residential real estate or commercial real estate.
Residential and commercial real estate appraisers are there to determine how much is a piece of property worth at a particular time. They inspect the property thoroughly and do some research to compare it to similar properties currently on the market. After that, they gather all the essential information and determine the exact value of the property. It is necessary to understand that every real estate appraiser may have a different opinion when it comes to the same property valuation.
So what do commercial appraisers value?
They establish the value of:
- Apartments (5 units)
- Office Buildings
- Vacant commercial land
In contrast, residential real estate appraisers establish the value of the:
- Single-family homes
- Apartments (4 units)
- Vacant residential land
Appraisers need to be informed and stay-up-to-date with any property trends in the area and current market prices. If they learn more about the area, they will better estimate and determine the real and fair value.
- Real estate appraisers have the option to choose between three different licenses. Real estate appraisers are first trainees before they become licensed appraisers. The thing is – trainees need an additional 1000 hours of work to become a licensed appraiser. Only then can they value specific properties such as apartments and buildings.
- After that, licensed appraisers can become certified appraisers. That requires a bachelor’s degree or higher, to begin with, 300 hours of qualifying education, 3,000 hours of field experience in no more than 30 months, and 1,500 hours in non-residential valuations. Higher than that is the certified general appraiser license.
- Different appraisal licenses:
- Appraiser trainees
- Licensed residential appraiser
- Certified residential appraiser
- Certified general appraiser
How Much Do Real Estate Appraisers Make?
- The average salary for real estate appraisers per year is from $13,000 to 170,000 per year. The average salary for appraisers in the USA and the UK is $60,478 a year. The entry-level appraiser can compensate for approximately $48,000 a year, while certified professionals can earn from $75,000 and even higher.
- It all depends on the certification level and experience, as well as the country you’re working in and various other factors. All in all, we definitely think it is a career worth considering!
- Appraisers can work for various employers or on their own.
- They can work for:
- Mortgage lenders
- Private appraisal firms
- But that’s the wonderful thing about this job – you can work for whom you want or on your own. You don’t have to work from 9-5, and you can make the schedule to your liking. The only thing not so likable about this job (for some people) is that you have to travel from one property to another, which can be time-consuming and exhausting.
Is Real Estate Appraiser A Good Career?
In general, yes. A real estate appraiser is a promising career because it offers flexible working schedules; it is in strong demand these days and can provide you a generous salary. The big plus is that field appraisers spend half of their workday working on the field when examining the properties, and the profile is also non-sales oriented.
- A career in strong demand
- Great earning potential
- Control over working schedule
- Non-sales oriented
- Dynamic working lifestyle
- Independent working time
- You can specialize to a level of your liking
- Variety of potential niches
- The earning is up to you and how much appraisals you can take at a time
- You can work from home
- It can be difficult to find a good mentor
- Low salary at the beginning (the difference between trainee salary and certified professional’s salary is enormous)
- Requires a lot of studies and work experience
- You’re always driving around
- It can be time-consuming
- You have to work outdoor even on the harsh weather conditions
- Partnering firm (middleman) can take high fees
- Business expenses (you have to pay for a license fee, education, insurances, software subscription, vehicle, fuel, laptop, and other office supplies)
Is The Appraisal Profession Dying?
The short answer would be – yes, the appraisal is slowly dying, and the new real estate appraisers are now in higher demand than ever before. The ranks of licensed and professional certified real estate appraisers in the US have declined by 20% since 2007. That may be the consequence of current workers retiring without replacements.
A good percentage of real estate appraisers who worked at the field now work for banks and appraisal management companies as in-house reviewers. Also, we now have the technology that easily and quickly calculates and does the estimation. The economic expansion and increase in population are also to blame.
Having these statistics in mind, a recent college graduate has a really good chance of building a career in this industry. But for many people, there’s too much that needs to be learned and mastered, and so training and certifications can be daunting and time-consuming. But finding the right mentor is the key to success.
Is Real Estate Appraiser A Good Career – The Bottom Line
Being a real estate appraiser has its ups and downs, like any other career. Whether it would suit you or not depends on your personal preferences and expectations towards this career.
Thereby, if you are a person that likes flexible working schedules, the ability to choose clients, work from home, analyze details, and research – then this is your call. Also, you have an excellent chance of earning a great deal of money.
However, real estate appraisers also need to possess some skills, such as critical thinking abilities, analytical skills, organizational, time-management, writing skills, and communicational skills. Appraisers with these qualities can better understand their clients, do valuations properly, give fair judgments, and complete appraisals well and in time.
With the right valuation, sellers receive a fair estimate of their property’s worth. The proper valuation also ensures those giving credit or potential buyers.