Real estate appraisal can generally be a lucrative field of work. There are so many benefits to working as a real estate appraiser.
First, you can organize your time and have flexible work hours – except for meeting with clients. Other than that, you can pretty much work during the night if you like.
This job requires a lot of knowledge in order to do it well. You may be looking into real estate overall, or you may be interested in the appraisals in particular.
All is fun and all jobs within the real estate can earn you a nice salary. When you’re working as a realtor, your salary depends solely on how hard you worked this month.
A realtor earns a salary by taking commissions from jobs. Appraisers earn a salary a little different, but more on that later.
If you’re looking into becoming a real estate appraiser, you must be wondering how much could you possibly earn in a year. So, let’s get to it – continue reading to find out!
What Does A Real Estate Appraiser Do?
Real estate appraisers’ job description mostly consists of estimating the value of a certain property. The value is assigned and calculated according to certain rules and after taking some factors into account.
The real estate appraiser also has to inspect the real estate property thoroughly, check the public records of the place among other things. After completing all their work, they have to finish a written report about their appraisal.
More often than not, real estate appraisers use a similar property to calculate the value of the property. That’s just one of many ways to appraise a property, but it’s the most popular and accurate way. Also, the appraisers have a job to keep current data on every real estate place they did an appraisal on.
There are two fields of real estate appraisal – commercial and residential. The division is the same as real estate agents, and it’s done for the same reasons, more or less.
It can be hard to keep track of both fields, which is why most real estate appraisers pick only one. There are far more residential appraisers than commercial ones – because it can be rather tricky to assign value to commercial property.
It takes more knowledge and extra work to keep track of the commercial real estate market. Appraisers choose to do it nevertheless because commercial appraisals are paid a lot more.
Real estate appraisers can work for a company, lending institution, a government agency, or they can work as independent contractors. They most often work independently, so they work ‘on hire’, whenever they’re needed. This way, an appraiser can choose what project they’ll work on, which is great. On the other hand, they don’t have a consistent volume of work, which means their work can experience a lull from time to time.
Real estate appraisers don’t take on to many jobs at once, they usually work with only one. The reason behind this is because they can focus on the job completely before taking on another. Read up more on this matter in our article here.
Why Would Someone Need A Real Estate Appraiser?
A real estate appraiser the available data and different methods to assign value to the property. The most popular reason why someone would need a real estate appraiser is for a loan.
When a person wants a loan so acquire a new property, the bank will request an appraisal to be done on the property. There are some more reasons, so let’s check them out:
- For tax purposes, to determine the level of tax;
- For domain purposes;
- For the purpose of dividing assets.
The process of an appraisal starts by estimating the size of the jobs and the information that is needed in order to finish the job. Next, a thorough inspection is done to figure out the quality and the condition of the property.
After all that’s done, the real estate appraiser takes one or more methods in order to calculate the value of the property. Then, the report is written and given to the client.
How Can Someone Become A Real Estate Appraiser?
Not everything is about salary. If you want to become a real estate appraiser, there are some things you have to keep in mind that have nothing to do with the appraisal.
We’re talking boundaries that may make it very hard or impossible for you to obtain the license of a real estate appraiser. Some requirements are set by the Appraisal Foundation, and some requirements vary from state to state.
Let’s see what those general requirements are:
- A bachelor’s degree;
- Completed 300 hours of coursework
- Completed 3,000 hours of training with a licensed real estate appraiser.
And that’s not all. The whole process takes about 3 years to become a certified real estate appraiser. You can have trouble finding a real estate appraiser willing to train you – but that’s where the Appraisal Institute comes in.
They can connect you with appraisers that are willing to do the job! So, if you’re having trouble finding someone to train you, contact them!
Before you start to work on getting your license, you have to finish the 300 hours of coursework. Then, you’ll obtain a trainee license so you can start training to become certified!
When obtaining the license, you will only get a general license if you opt for the 3,000 hours of work. If you decide on one license only – residential or commercial, you will require fewer hours of work to complete it, somewhere between 1,000 and 1,500 hours.
When you’re training, you will do so many different appraisals. Every job is different, so you will be prepared for the moment when you’re supposed to start working independently.
What’s great about the job of a real estate appraiser is that they never run out of properties to appraise. The real estate market always needs appraisers!
Can a real estate agent also be a property manager? Read our article to find out!
Real Estate Appraiser Salary – How Much Can You Expect To Earn?
This may be the main thing everyone asks about when they are interested in becoming a real estate appraiser. Who wants to spend three years obtaining a license for a job that doesn’t pay above the state average, right?
The expected salary depends on your working position, so let’s start:
- Trainees are paid small fees for every job they finish. They may be paid hourly or per finished projects. The fee is usually $50 when they’re just starting out, and it can go as high as $150 when they gain a better idea of the job.
- The salary increases as the trainee are able to finish a lot of the work alone. A trainee is expected to earn somewhere between $1,000 and $3,000 a month. Most positions for people training to become appraisers are at appraisal companies and government tax agencies.
Residential And Commercial Appraisers
- In this section, we’re talking about residential and commercial appraisers that work for government agencies, appraisal companies, lending institutions, or they can work independently. When they are just starting out, their salary is around $37,000.
- Once they really establish themselves in the company, their salary will go as high as $100,000. It truly depends only on their ability to finish a lot of the jobs alone. They earn somewhere between $200 and $350 per job well done.
- If they are working independently, most of their work is for home equity loans, mortgages, and refinancing loans. After all, these are the main reasons why a client would need a real estate appraisal report done.
- Certified appraisers have spent an additional 1,500 working as an appraiser and finished successfully a special licensing test to become certified. Certified real estate appraisers are something every appraiser hopes to become.
- The average salary for a certified appraiser is $75,000 as a start. And their salary will go as far as $200,000 – which is amazing, you have to agree.
- Certified appraisers are usually needed in legal proceedings like divorce, estate division, or tax litigation. Also, every property that is worth over a million dollars has to be appraised by a certified real estate appraiser.
Real Estate Appraiser Salary – Conclusion
To conclude, the real estate appraiser salary can be pretty good. You will start more on the average side, however, but you will be able to advance yourself and earn so much more than that.
Becoming a real estate appraiser is not easy. There is a lot of coursework and a lot of training hours to finally become a real estate appraiser. Thankfully, it pays off.
If you’re looking to become a real estate appraiser – we salute you. It can be a very interesting job position, and it never gets dull.
Every project is different and it speaks for themselves. There are so many places you can work with your appraiser license. So, if you ever get bored at the lending institution, you can just switch to working independently!
There are so many options for real estate appraisers, and if the salary isn’t enough to convince you, we don’t know what is!