Typical Expenses for a Real Estate Appraiser

Real estate appraisers have to pay to get started and maintain their business licenses.

Running a real estate appraisal business can be an ideal career for people who want to be self-employed, have high earning potential and are comfortable working with numbers. Median earnings for real estate appraisers in 2008 were $47,000, according to the US Department of Labor Bureau of Labor Statistics. But appraisers often make well over six figures, according to CNN. In return, they face certain expenses to enter the profession and stay in business, most of which are associated with certification and licensing.

Training

Federal law requires real estate appraisers to have state certification, and most states require appraisers to have at least an associate's degree or, for appraisers specializing in commercial property, a bachelor's degree. The cost of student loans should be figured into the expenses of starting a business as a real estate appraiser.

Licensure

After completing an associate's or a bachelor's degree, you will have to enroll in professional classes to work as a trainee and eventually to qualify for the licenses required to work independently. Trainees, who must work under the direct supervision of a qualified appraiser, must take three courses, totaling 75 hours of training time, starting in 2010 at prices of about $500 per course, or $750 for the whole package, according to the Appraisal Institute. The courses required for licenses build on the trainee course. The most basic professional license, Licensed Residential Appraiser, required an additional four courses with registration fees of about $385 each.

Continuing Education

Once you are certified to work as a professional appraiser, you will have to pay for continuing education credits to maintain your license. The minimum continuing education requirement is 14 credits per year, according to the U.S. Department of Labor Bureau of Labor Statistics. An example of a course that would qualify for your continuing education requirement, a two-day appraisal curriculum overview offered online by the Appraisal Institute, cost $430 for non-members in 2011. You will also have to complete a seven-hour National USPAP Update Course every two years. Taking the update course online in 2011 cost $150.

State Licensing Fees

Finally, you will have to pay your state Board of Appraisers to obtain and maintain your certification and license. These fees vary by state. The New Jersey Board of Appraisers, for example, required appraisers to pay $800 in licensing fees every two years in 2011.

References

• New Jersey Office of the Attorney General: Instructions for licensure or certification as a Real Estate Appraiser
• US Department of Labor Bureau of Labor Statistics: Appraisers and Assessors of Real Estate
• The Appraisal Institute: Starting Your Career
• CNN Money: Knowing Property Values Can Pay
• Merrell Institute: USPAP