Real Estate Appraiser
A real estate appraiser is a licensed professional responsible for estimating the value of various types of real property, including residential homes, commercial buildings, and undeveloped land. They play a critical role in the real estate market by helping buyers, sellers, and lenders agree on fair prices, particularly during mortgage processes. Although their work is similar to that of assessors, who typically value properties for tax purposes, appraisers focus on individual properties and often work for private companies.
The occupation requires strong analytical skills, a good sense of judgment, and effective communication abilities to produce detailed reports on property valuations. Most appraisers are self-employed or work with lending institutions, real estate agents, and appraisal management companies. Their tasks involve local travel to inspect properties and gather data, as well as analyzing market trends and comparable property sales to determine values. To enter this field, individuals typically need a bachelor's degree and must complete specific training and licensing requirements. The job outlook for real estate appraisers is optimistic, with employment expected to grow faster than average, reflecting the ongoing demand for property valuation services.
Real Estate Appraiser
Snapshot
Career Cluster(s): Government & Public Administration, Marketing, Sales & Service
Interests: Property valuation, construction, commercial development, real estate, architecture, marketing
Earnings (Median Yearly): $61,630 per year, $29.63 per hour
Employment & Outlook: 5 percent (Faster than average)
Entry-Level Education Bachelor's degree
Related Work Experience None
On-the-job-Training Long-term on-the-job training
Overview
Sphere of Work. Real estate appraisers are licensed professionals who estimate the value of real property. Real property includes residences, office buildings, shopping malls, apartment complexes, many other types of structures, and undeveloped and developed land. Appraisers often request that property be sold so that a lending institution and buyer can settle on a fair mortgage loan. Real estate appraisers are similar to assessors but work for private companies and focus on valuing individual properties. Assessors work for the government and value property for tax purposes, frequently assessing the value of entire neighborhoods rather than individual properties.
Work Environment. Many real estate appraisers are self-employed, while others are employed by lending institutions, real estate agents, and appraisal management companies. They usually work locally because they need to be familiar with their communities to determine fair market values; however, some appraisers put their expertise to use in regional, national, or even international markets. The amount of interaction between a real estate appraiser and their coworkers and staff depends on the size of the employer. Most appraisers deal predominantly with clients, realtors, and loan officers. A significant amount of local travel is necessary to appraise properties, with some occasional evening and weekend hours required to complete the work.
Occupation Interest. People attracted to appraising real estate tend to be analytical and have a good sense of judgment. They enjoy gathering and evaluating data and performing mathematical tasks. Their desire to assess property and structures usually demonstrates a general interest in architecture or commercial development. Good communication skills are needed to write reports, interact with clients, and defend appraisals. Appraisers must also have a strong sense of professional ethics and remain unbiased in their examinations.
A Day in the Life—Duties and Responsibilities. Real estate appraisers may specialize in commercial or residential property valuation or may belong to a company that performs both types of appraisals. When properties are mortgaged, taxed, insured, developed, or sold, appraisers must be hired to determine the current value. Real estate appraisers’ expertise is required in a variety of situations, most commonly in conjunction with the sale of a commercial building or residence, but also when a developer needs land appraised or when a municipality needs to issue municipal bonds for a new school, hospital, or other public project. Appraisals are also conducted when property is inherited, when it is taken by eminent domain by a government agency, or when a right-of-way is requested by a utility company, mass transit company, or other entity.
Appraisers use set procedures to collect a variety of specific data (such as tax assessment figures, local economic statistics, and property size and age) to determine a fair value. They obtain most background information online, but it is necessary to inspect the property in person, paying special attention to any remodeling work, construction additions, or deterioration that may have occurred since the last tax assessment or appraisal. They evaluate the neighborhood, noting the types, conditions, and values of other houses, the proximity of green space or railroad tracks, and other factors that can influence property value. Often, the appraiser takes photographs or video footage to document items or conditions that influence the appraisal process. Because it usually takes longer to collect research and analyze data related to valuing commercial property, commercial real estate appraisers spend more time in the office than residential appraisers do.
The appraiser also compares the data with recent real estate transactions, or “comps,” as well as previous real estate appraisals, before calculating the value of the property. Then, they write a report detailing the results of the assessment and submit the report to their clients and other interested parties. All real estate appraisers must keep accurate, thorough records of each property appraisal process they complete. These records are important not only for documentation and ensuring best practices but may also be used for reference the next time a property is appraised.
Those who are self-employed also handle billing, marketing, and other business management-related tasks.
Work Environment
Immediate Physical Environment. Appraisers spend most of their time working alone in offices and visiting properties. The residences and commercial properties they appraise may sometimes harbor potential health hazards, such as mold, dust, and insect or animal infestations.
Human Environment. Trainee appraisers work closely with their supervisors. Licensed appraisers might supervise trainees or an assistant or two, while those who work for larger firms or banks report to a director or manager. The interaction between an appraiser and their client or realtor can be stressful if an appraisal is significantly higher or lower than the selling price.
Technological Environment. Appraisers use a variety of office equipment, including copiers, scanners, and fax machines. They rely on financial calculators and computers for the majority of their office work. Digital cameras and video cameras are used occasionally on-site.
Education, Training, and Advancement
High School/Secondary. A college preparatory program with an emphasis on mathematics and writing provides the best foundation for work in this field. Math courses should include finance, accounting, geometry, and/or statistics. Other relevant courses include English, speech communication, economics, psychology, computer science, business law, and photography.
Postsecondary. Before undertaking any postsecondary coursework, one should become familiar with the licensing and certification requirements in the desired state(s) of employment. A bachelor's degree is the minimum recommended requirement for a Certified Residential Real Property Appraiser. A Certified General Real Property Appraiser is required to complete a bachelor’s degree, while a Licensed Residential Appraiser needs a minimum of thirty semester credit hours. Necessary coursework may include English composition, finance, statistics, computer science, business or real estate law, algebra, geometry, higher mathematics, microeconomics and macroeconomics, accounting, geography, agricultural economics, business management, or real estate.
In addition to mandatory college coursework, each level of certification requires a specified amount of industry training, known as the Required Core Curriculum. These courses include basic appraisal principles, basic appraisal procedures, and the National Uniform Standards of Professional Appraisal Practice (USPAP). The amount of training ranges from fifteen hours for trainees to three hundred hours for Certified General Real Property Appraisers.
Continuing education is necessary to maintain a license or certification. This includes a minimum of fifteen classroom hours annually and a seven-hour National Uniform Standards of Professional Appraisal Practice (USPAP) Update Course every two years.
Related Occupations
− Construction and Building Inspector
− Insurance Claims Adjuster and Examiner
Bibliography
"Appraisers and Assessors of Real Estate." O*NET OnLine, 6 Aug. 2024, www.onetonline.org/link/summary/13-2023.00. Accessed 23 Aug. 2024.
"Property Appraisers and Assessors." US Bureau of Labor Statistics, 17 Apr. 2024, www.bls.gov/ooh/business-and-financial/appraisers-and-assessors-of-real-estate.htm. Accessed 23 Aug. 2024.