Real Estate Appraiser

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A Career as a Licensed Real Estate Appraiser

Real estate appraisers are specialists in estimating the value of real property. Real property consists of land, buildings, and natural resources such as water, oil, or minerals. Estimates of value, known as appraisals, are made when property is bought, sold, assessed, taxed, condemned, insured, or mortgaged. They may also be required in divorce actions, when partnerships are dissolved, and when property is listed as a business asset. Appraisers, especially independent fee appraisers, may give expert testimony in court. They may also act as consultants.  

Real Estate Appraisers prepare a written description of the property and make an estimate of its value. They may complete standardized checklists as they evaluate the property and the neighborhood in which it is situated. Appraisers obtain land values from county sources and sales information about nearby properties. They also examine the income records and operating costs of income properties. Appraisers estimate building replacement costs using building valuation manuals and professional cost estimators. They also verify legal descriptions of property with county records, measure the property and compare the measurements with the legal descriptions. They draw land diagrams and note conditions and special features of buildings. Appraisers analyze and evaluate the data and prepare a written report outlining methods by which the fair-market value was estimated. At times it is necessary for a senior appraiser to review these reports. Appraisers generally work alone; however, consultants may be used for more complex appraisals. Computers are an indispensable tool in this complex work.    

Appraisers may walk around property and climb stairs in buildings. The Research, analysis, and writing are usually done in an office setting. Occasional out-of-town travel is required and a valid driver's license is necessary. Appraisers may join professional associations such as the Appraisal Institute, the National Association of Real Estate Appraisers, or the American Society of Appraisers. Association members subscribe to a code of ethical behavior governing their conduct with both the society and the public.  

The number of appraisers in the private sector is highly dependent upon interest rates and general economic conditions that drive real estate activity. When rates are low, residential and commercial purchases together with mortgage refinancing can cause an almost frenzied demand for appraisals. When rates increase substantially, or the economy sputters, real estate activity usually declines, and few appraisals are needed. Layoffs may then occur in appraisal staffs, and independent appraisers may at least temporarily leave the field. Government employment is less sensitive to economic cycles, but growth there is all but stagnant.

How to Become a Licensed Real Estate Appraiser

All applicants must qualify with approved education and pass an examination. In addition, appraiser experience is required in many states to be fully licensed. Experience requirements varies from state to state.  

Many community colleges and evening adult schools offer courses in real estate appraisal. Some colleges offer courses relating to appraisal that lead to a bachelor of science in real estate. Courses in economics, real estate, business administration, and mathematics provide a good background for this occupation. Many companies provide classroom training for their beginning appraisers. A long training period is necessary to become skilled in appraising the more complex types of real estate. Professional associations and colleges offer seminars and classes conducted by leaders in the field.