More than 6.5 million existing homes sold in 2020, according to the National Association of Realtors. And more homeowners refinanced mortgages than in any other year since 2003. Buying, selling, and refinancing property relies on real estate and financial pros. Real estate appraisers possess the knowledge and experience to tell aspiring homeowners and mortgage lenders just what their property is worth.
On average, real estate appraisers and assessors made $65,630 in 2020, according to the Bureau of Labor Statistics (BLS). That's nearly $10,000 more than the national average salary. Appraisers don't need to follow a traditional higher education path. Instead, their roles require real estate training on the job and in the classroom.
Keep reading to learn what it takes to become a real estate appraiser.
Steps to Becoming a Real Estate Appraiser
Becoming an appraiser takes "three Es," per Lisa Dismaris, The Appraisal Foundation's vice president of appraisal issues, on an episode of the foundation's Appraisal Talk podcast:
Education
Experience
Examination
Here's a step-by-step path for achieving each:
Step 1: Learn your state's appraisal criteria.
The Appraisal Qualifications Board (AQB) sets national minimum requirements for how to become a real estate appraiser. However, each state imposes its own additional qualifications. For example, some states require you to possess a trainee license to begin training as an appraiser. Others do not.
Always follow the rules set by your state's regulatory agency.
Step 2: Consider getting a degree.
While you're looking into your state's requirements to become a real estate appraiser, it's a good time to reflect on what a college degree could get you.
You do not need a degree to become a licensed home appraiser. But if you want to become a certified home appraiser, you need at least an associate degree. And, if you plan to become a certified general appraiser — who can appraise both homes and commercial properties — you'll need a bachelor's degree.
Later in your career, you might consider a real estate master's degree, which can help you advance to upper levels of management at real estate investment companies.
Step 3: Start your education as an appraiser trainee.
If your state requires you to possess a trainee license, then you must complete at least 75 hours of real estate appraiser classes before gaining experience in the field.
You can find classes to become an appraiser at community colleges, private real estate schools, and online. To find a training program, start by finding your state's approved list of course providers. Your trainee classes may cost less than $1,000. A trainee license may run you a couple of hundred dollars if your state requires one.
Once you finish your trainee courses, you must complete at least 1,000 hours of supervised work before you can apply to become a licensed home appraiser.
Step 4: Become licensed or certified in appraisal.
After completing your initial training, it's time to get a professional credential. You can become:
Licensed in residential appraisal.
Certified in residential appraisal.
Or certified in both residential and commercial appraisal.
The AQB has different minimum requirements for each of these titles. You can find the details for each in the career paths section of this article.
For any of these credentials, you must complete coursework and work under the supervision of an approved appraisal supervisor. The process may take six to 18 months to complete and can cost $1,000 to $6,000 or more.
Step 5: Take the national appraiser exam.
Once you've completed the necessary education and supervised experience, you're ready to sit for the National Uniform Licensing and Certification Examination.
Testing fees for the exam vary, costing around $100-$200. You can find sample questions and FAQs on The Appraisal Foundation's website.
Importantly, consult your state's approval agency for information about:
Approved testing sites.
What to bring on testing day.
Additional state-specific application and registration fees, costing $200-$400.
Step 6: Continue your real estate education.
Your license or certification will eventually expire. To keep it active, enroll in continuing education classes. You can find these classes at the same in-person and online institutions where you completed your initial training.
Appraisers gather and analyze loads of information to formulate an appraisal. Math-savvy individuals might make good appraisers since their job involves making estimates and projections, for example, how much money a commercial space could potentially make. Today, appraisers use computer programs for some calculations. Even so, it's helpful to know about the theory behind the numbers.
The real estate industry comes with upswings, valleys, and super high stakes. Thousands — even millions — of dollars are on the line. It's important that appraisers remain unbiased and stick to their training rather than succumb to pressure from the buyer or seller.
[/dig-deeper][category-tab-list title="Career Paths for Real Estate Appraisers" theme="primary"]Your first role in real estate appraisal will be as a supervised trainee or apprentice. You will need to spend at least six months in your apprenticeship. You'll get paid for their work, but not as much as licensed and certified appraisers. Appraiser trainees' average base salary is about $37,590, according to Payscale.
Once you've put in a minimum of 1,000 hours of supervised experience within six months and you've participated in at least 150 hours of approved education, you can take the exam to become a licensed residential appraiser.
Alternatively, you could become a certified residential appraiser. Certified residential appraisers are allowed to appraise more expensive properties than licensed appraisers.
To become a certified home appraiser, you need to have a degree or 30 hours of qualifying college-level credits. You need to log 1,500 hours of supervised experience over twelve months and 200 hours of education.
Certified general appraisers are allowed to appraise both residential and commercial properties. This title comes with higher requirements. You must:
Complete at least 3,000 hours of supervised experience appraising residential and commercial spaces.
Participate in at least 300 hours of real estate appraiser education.
Hold a bachelor's degree from an accredited school.
FAQs on Becoming a Real Estate Appraiser
Real Estate Appraiser Training Programs
Let's say you're ready to start training as a real estate appraiser. The first place you should look is your state's regulatory agency website. There, your state should list its approved course providers. /p>Approved real estate appraiser education programs cover topics that help you understand the regulations and theories behind appraisal. As you advance through the profession, educational topics will expand./p>Here are examples of what you'll learn at each level of the profession:
Trainee or Apprentice
As a trainee or apprentice, you'll learn:
The fundamentals of real estate appraisal, financing, and concepts
Appraisal processes and procedures
Standards of practice
Licensed Residential Appraiser
Before becoming licensed, you must complete coursework that covers the following topics:
Market analysis
Site valuation
Sales comparison
Writing reports
Certified Residential Appraiser
To become a Certified Residential Appraiser, you'll take the above courses and a few more, including:
Advanced report writing
Finance, statistics, and valuation modeling
Certified General Appraiser
Certified General Appraisers learn the above topics for residential properties. They also study commercial appraisal methods, for example, how to estimate the income a commercial space could potentially generate.
Continuing Education Throughout Your Career
As housing trends and policies change, you can stay up to date by taking continuing education courses, which may cover:
Environmentally friendly buildings
New policies and best practices
Related Career Options for Real Estate Appraisers
Banker
If you're drawn to analyzing data and making financial projections, consider careers in banking and finance. Roles like auditors, brokers, loan officers, and financial analysts put their keen accounting skills to use in real estate and other sectors.
Home Inspector
Like appraisers, home inspectors evaluate properties. However, home inspectors are more concerned with the building itself than the market. Consider becoming an inspector if you love learning about home architecture and excel at finding and communicating potential hazards.
Entrepreneur
Entrepreneurs evaluate the market for business opportunities. Their job also involves networking, fundraising, and marketing their business idea. If you're interested in real estate, you could start an entrepreneurial venture working as an independent appraiser or bring your own real estate startup idea to life.
