What Does It Take to Become A Real Estate Appraiser?
The market value of commercial and residential properties is estimated by real estate appraisers. The steps to become a real estate appraiser vary by state, but they always include taking prelicensing classes, gaining professional experience, and passing a test. We've put together this step-by-step guide to help you learn how to become a real estate appraiser, complete with state-specific information and paperwork.
Completing Coursework To Obtain A Trainee License
You must first become a real estate assessment trainee before you can become a real estate appraiser. That implies you must finish and pass particular curriculum in real estate valuation in order to become a real estate appraiser. National course requirements are defined by the Appraiser Qualifications Board (AQB); however, certain states need extra study. Each state regulates the appraisal profession differently, but all require you to begin your career as a trainee appraiser.
The AQB requires that you complete 75 credit hours of instructional coursework from an accredited source to become an appraisal trainee. The following is a breakdown of the mandatory core curriculum courses that cannot be substituted by experience:
Basic Appraisal Principles (30 hours): This course covers fundamental real estate ideas, legal issues, real estate financing, economic principles, and appraisal ethics for aspiring appraisers.
Appraisal Procedures (Basic) (30 hours): The methods course teaches students how to collect data, characterize the subject property, and explain appraisal conclusions, as well as the three classic techniques to value—cost approach, sales comparison approach, and income approach.
USPAP (15 hours): National Uniform Standards of Professional Appraisal Practice (USPAP): The 15-hour USPAP course outlines industry standards for ethical behavior and competent performance as outlined in the USPAP.
You don't have to complete all of these hours at once because training institutions such as Hondros College allow you to enroll in specific courses. Bundled courses, on the other hand, are usually less expensive. These seminars are not only compulsory, but they are also beneficial since they educate you how to produce an objective assessment of a property's worth for tax, mortgage, insurance, and other purposes. Class styles, hours, and locations vary by provider, but an authorized license course should cost between $500 and $1,400.
Some states need extra classroom time in addition to the national course requirements to become an appraiser trainee. The 15-hour USPAP trainee class, as well as state-specific criteria, are still required in these states.
Hours Of Appraiser Fieldwork Completion
Following your certification as an appraiser trainee, you must begin working under the supervision of a certified real estate appraiser. You must complete 1,000 to 2,500 hours of supervised work in around six months before going on to the next level of appraiser license.
Residential appraisal firms and banks frequently hire trainee appraisers. Although obtaining a position as a real estate assessment trainee might be difficult, these firms often have the greatest need for real estate evaluation services. Job boards like the American Society of Appraisers' job bank or Indeed might also help you locate a job. Just make sure you work under the supervision of a professional appraiser and keep account of your hours.
Pass The Appraiser Licensing Exam In Your State
You can register for the real estate appraiser test once you've completed the requisite hours of work experience in your state. The Licensed Residential test is made up of 110 questions that must be answered in four hours.
To discover the real estate appraiser test schedule in your location, you'll have to browse each website. At the time of enrollment, you will be charged an exam cost, which varies by state. Make sure you have two kinds of government-issued identification when it's time for your exam.
Submit Your Application For An Appraiser's License
You will submit a licensing application to your state's board of real estate appraisers after completing your work experience and passing your exam. Background information, evidence of course completion, job history, and an experience report are all required by different states.
You can start working as a real estate appraiser after your license has been authorized, but there are restrictions on the types of property you can assess. You can only evaluate non-complex, one- to four-unit residential properties worth less than $1 million and complex, one- to four-unit residential properties costing less than $250,000 as a qualified home appraiser.
The Advantages Of Becoming A Residential Appraiser
The biggest advantage of becoming a licensed home appraiser is that you may evaluate houses for more than $1 million. You must fulfill national and state standards for appraisal courses, experience, and college-level education in order to do so. Because many banks prefer to engage with certified home appraisers over licensed residential appraisers, you'll be more marketable once certified.