Wondering if a career as a real property appraiser is right for you?
There are many benefits, some challenges, and lots of optimism in the appraisal industry right now. Whether you’re a real estate agent wanting a change, a newbie appraiser in training, or you’re dreaming of a career that’s on your terms, keep reading and explore whether an appraisal career is right for you!
The Benefits of a Career as a Real Property Appraiser
Real property appraisers are the valuation professionals of real estate. Using their expert research and data analysis skills, appraisers develop estimated opinions of property value that are independent, impartial, and objective.
An appraiser’s job is important in many types of real estate transactions. After all, the results of an appraisal report guide mortgage loan approvals, refinances, tax assessments, estate values, and much more. Here’s a rundown of the biggest appraisal career benefits.
It’s Engaging Work
Real property appraisal is engaging work! The role of an appraiser combines a data scientist and a field reporter into one fierce analytical specialist. One day, you might be out in the field measuring a property, visually assessing its features, and taking photographs. The next day, you might be in your office researching comparable properties, crunching numbers, and writing an appraisal report.
If you love data analysis, working with numbers, and having the chance to tour beautiful properties, then a career in appraisal is for you.
Appraisers Have Sought-After Independence
Do you love the flexibility that a career as a real estate agent provides, but want to work more behind-the-scenes?
While it’s a flexible gig, selling real estate isn’t for everyone. Fortunately, flexibility reigns in real estate appraisal, too! Licensed appraisers have a choice in how they work, whether for themselves or someone else. They enjoy more control over their schedule and have roles that are especially ideal to do from home.
Appraisers Have High Job Satisfaction
Career research platform Zippia found that real property appraisers have 25% higher job satisfaction on average compared with other careers. Why the hype? The flexible schedule!
Other advantages of the job include:
- Helping people make more informed real estate decisions
- Making a positive impact on communities
- Thriving through intellectually stimulating work
Many Opportunities For Professional Growth
Working in appraisal, you’ll have ample opportunities for professional growth. The field is designed that way. There are three potential independent licenses you can earn, and they all correspond with your advancing skillset, the types of properties you can appraise, and the average salary you can earn.
Plus, appraising properties is only the broadest description of what a licensed appraiser can do. Appraisers also work as data researchers, teachers, consultants, and valuation professionals in the government, legal, and insurance fields.
Challenges of Working as an Appraiser
As with any career, there are some challenges to consider. The biggest ones involve your education and time commitment.
Completing Your Education and Training
Training to become an appraiser requires a larger time commitment than other real estate careers. During your training, you can expect to take traditional courses and work to earn required experience hours in the field before you can become fully licensed. Additionally, advanced appraiser licenses require you to complete some college coursework or earn a bachelor's degree.
Navigating the Competition
You may also need to navigate some competition to get started in the appraisal field. If you don’t use the right strategies to find a mentor, appraiser trainee positions can be difficult to secure. Beyond your trainee years, you might find there’s more competition among appraisers to win work in various locales. This is why it's especially important to stay current in your knowledge with Continuing Education, which is required for all independent appraisers year to year.
The Job Outlook For Real Estate Appraisers
Benefits and challenges aside, it’s an optimistic time for real estate appraisal. Here’s why.
A Growing Industry
Current trends show that the appraisal field is diversifying and growing. Innovative technologies are improving the efficiency of the process, and a deeper focus on data analytics is attracting new minds to the profession. Love data science? This is your place.
According to the U.S. Bureau of Labor Statistics (BLS), employment of real property appraisers is projected to grow 5% through 2032. This is faster than average compared to other occupations.
There’s a High Demand For Appraisers
There’s also a higher-than-average demand for appraisers due, in part, to an aging workforce.
The Appraisal Institute’s 2023 U.S. Valuation Profession Fact Sheet shows that 23% of active appraisers working between December 2019 and December 2022 were over 65. An additional 43.2% of active appraisers during that timeframe were between the ages of 50 and 65.
Such a high percentage of appraisers who are at or nearing retirement age has industry watchers concerned. Some fear there aren’t enough new appraisers entering the field to replace retirees. As a result, there’s a national movement to modernize training and mentorship programs for new appraisers, to meet the growing demand. The PAREA program, or Practical Applications of Real Estate Appraisal, is one example.
High Earning Potential
Real estate appraisers have remarkably high earning potential, depending on the type of appraisal license you earn. Salary.com data as of January 2024 points to appraisers earning anywhere from $58,919 per year as a newly licensed residential appraiser to $113,958 per year as a seasoned certified general appraiser. Working as an appraiser, your salary only grows more competitive the more education and experience you have.
Great Job Security
Like other real estate careers, appraisal is an evergreen field with stability and security. Property appraisal is necessary for a myriad of reasons. Appraisals are ordered when properties are bought and sold, insured, refinanced, documented as part of estates, assessed for taxes, and more. Real property appraisal isn’t tied solely to how the real estate market behaves. There are many opportunities beyond the standard real estate transaction.
Appraiser Education and License Requirements
Appraisal is a regulated field overseen by The Appraisal Foundation (TAF), which is the Congressionally authorized source of the minimum U.S. appraisal standards and qualifications. While appraiser licensing requirements differ a little from state to state, all state appraiser licensing programs must follow TAF’s minimum appraiser requirements. You can find these requirements organized by type of license in TAF’s Real Property Appraiser Qualification Criteria.
The Importance of Earning an Appraiser License
You must earn a license before you can become an independent real property appraiser. This not only fulfills the legal requirement. It also demonstrates your competency and credibility in the field. Most importantly, the license requirement, along with all TAF- and state-created appraisal regulations, are in place to protect the public and ensure proper appraisal practices.
3 Steps to Become a Real Estate Appraiser
The steps to become an independently licensed real property appraiser vary by state. But generally, there are three steps every newcomer to the field follows to get started.
#1 - Complete Appraisal Qualifying Education to Become a Trainee Appraiser
This involves completing 75 hours of entry-level appraisal education, known as Qualifying Education, or QE. QE courses include those on valuation practices, principles, and the USPAP – or the Uniform Standards of Professional Appraisal Practice. The USPAP is the primer on appraisal procedures in all federally regulated real estate transactions.
#2 - Find a Supervisory Appraiser Mentor and Complete Required Experience Hours in the Field
Next, you’ll typically find a supervisory appraiser to work alongside to gain experience hours in an apprenticeship-style arrangement. The number of experience hours you need to earn depends on the appraiser license you want to earn.
#3 - Take Your Licensing Exam and Apply For Your Independent Appraiser License
After earning the required education and experience as a trainee appraiser, you can take the national licensing exam. The real property appraiser licensing exam is known as the National Uniform Certification and Licensing Examination. There’s an exam for each of the three independent appraiser licenses.
Once you’ve passed your licensing exam, logged your coursework hours, and earned your experience hours, you can apply for your state appraiser license. From here, you can start your own real property appraisal business, work for a lender, or find a position ideal for an independently licensed real property appraiser.
Be sure to research your state’s appraiser license requirements before you get started.
Is Real Property Appraisal a Good Career Fit for You?
Only you can decide if real property appraisal is a good career fit for you. Seasoned appraisers love the analytical nature, flexibility of the job, high-income potential, and purposeful work of the field. If these traits sound good to you, you may have found your match!
If you want to learn more about starting a career in appraisal, visit our Appraisal Essentials blog for more guidance on entering the field. And if you’re ready to make a change, check out our appraisal qualifying education courses in your state.
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