Starting a Career in Real Estate Appraisal
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Real Estate Appraisal Basics
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Real estate appraisers are often referred to as "the eyes and ears of the lending companies." This is because real estate appraisers are the professionals who assess property values and judge defects in and outside of a property. Lenders depend on real estate appraisers to provide them with the value of a property. After the assessment is completed, the lender will know whether the property is at least equal to the loan amount. There is practically no home, building or mall purchase of any type that does not include or require the services of a real estate appraiser.
Industry Requirements
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The services of real estate appraisers are also needed for proposed business mergers and closures, tax assessments, government acquisitions of private land, valuing estates and property disputes. Many real estate appraisers work independently. However, some operate small firms, and some work full or part time for banks, insurance companies, local governments or real estate firms. Appraisal work requires technical skill and an unbiased view and analysis. The real estate appraiser's workday includes collecting and analyzing data from various sources. This data and analysis may include blueprints or even public records. Real estate appraisers must remain up to date on current appraisal standards, government regulations and zoning laws. They must know and understand the marketplace, the local area, as well as the various trends that affect the areas in order to inspect properties and produce a final written report and accurate analysis of them.
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Education Requirements
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According to the Appraisal Institute, investing in a liberal arts education is a good start for becoming a real estate appraiser. A background in economics, finance, law, engineering and architecture is also very helpful in this career. Potential real estate appraisers can check with their state licensing board to learn the current requirements for obtaining a real estate appraiser or trainee license. After taking and passing the required classes, generally, a state exam is required. However, all states have their own specific requirements.
Starting Your Career
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It's a good idea to find someone who is already an appraiser who will agree to become your mentor while you're in the process of learning about the business. You can actually do this before you get your license. After you have your license, find a company such as a real estate appraisal company, bank or real estate company that will allow you to work for it so that you can begin your career in the real estate appraisal business. Based on information from the United States Department of Bureau and Labor Statistics, annual median earnings for appraisers in the United States were $44,460 in May 2006. Fifty percent of appraisers earned between $32,080 and $64,460. The lowest amount earned included 10 percent of appraisers who earned less than $24,000. The highest income earned included 10 percent of appraisers who earned more than $86,140.00.
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Resources
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