Appraisers are more than math geeks and market experts! Or are they? If you’re new to the appraisal industry, you may have some expectations for how this job is going to go. You might've heard that appraisal is a lucrative, rewarding field — which it is! But you also might've heard that it takes minimal effort to get there — which it definitely does not. So, what is the appraisal field all about, and who are appraisers, really? Here, we untangle the myths from the truths, the expectations from reality.
What do real property appraisers even do?
Expectation: A real property appraiser goes to a property and looks for flaws that could diminish its value. Basically, a home inspector in a suit.
Reality: A real property appraiser does more than peruse a home for leaks and squeaks! This is a common misconception, and more in line with what a home inspector does. Rather, real property appraisers consider multiple factors of a home, from its interior condition and features to its neighborhood and the market in order to derive a precise and unbiased valuation of the property. Basically, when you begin your career as an appraiser, you’ll be thinking about the big picture of a property and its market value.
Where do appraisers work?
Expectation: Real property appraisers spend the bulk of their time in the field — they spend hours inspecting various properties, driving to and from locations, and writing reports on-the-go.
Reality: Appraisers do spend quite a bit of time out and about (so you’ll definitely want a good stash of audiobooks for long drives). However, a good portion of the job is also spent in an office writing reports and conducting market research. Hint hint: as of 2024, government opportunities for appraisers are on the rise!
A lot goes into the research and reporting part of the job, too. There are different approaches an appraiser can take in determining value, and each one requires fine-tuned attention to detail:
-
Sales comparison approach
-
Cost approach
-
Income approach
For example, if you take the sales comparison approach, you’ll need to look at comparable properties (comps) and take note of the amounts that they sold for.
Writing the report can be the most time-consuming part of the job, since it combines the research and ultimate compilation of supporting data with a quality control and review process before it can be completed. So you may want to invest in a comfortable desk chair for these hours in-office, in addition to the long-drive audiobooks.
Do appraisers make good money?
Expectation: All property appraisers make easy money from the get-go. It’s a high-pay, minimal effort gig that you can get into without a degree!
Reality: If only. Though it is possible to begin your career as an appraiser without a college degree, you’ll find that the best payoff comes when you have at least partial college experience under your belt. With the highest appraiser license (Certified General), you have the opportunity to make a healthy six figure income. Don't be fooled — becoming an appraiser takes time and commitment. You’ll have to learn the field, the market, data analysis methods, and industry standards. Once you’ve mastered all four of these elements, you’ll be able to make the most (and earn the most) of your appraisal career.
Who do appraisers work for?
Expectation: Appraisers answer to government agencies, loan offices, real estate agents, and other regulatory agencies on a day-to-day basis, with little flexibility to create their own schedules. Talk about rigid!
Reality: Though appraisers can work in agencies, mortgage companies, or banks, the job itself is rather independent in nature! You can even work for yourself — hooray for introverts! As an appraiser, you’ll still need to be prepared to communicate with clients, lenders, and others involved in the real estate process, and will need to be up-to-date on ever-evolving professional standards and guidelines (also part of the nature of the job). Still, you can expect a good amount of autonomy in this career, and can really make it what you want it to be.
That also means you’ll have flexibility to create the schedule you want, while still adhering to deadlines and meeting your clients’ demands. As the market fluctuates, your busy seasons and times off will also vary, and you can decide how and when to navigate those waves.
What kind of people can be real property appraisers?
Expectation: A real property appraiser is like the lawyer of the real estate world: someone who is brainy, well-dressed, and meticulous. On the downside, appraisers are a little overly formal, and tell bad jokes at the dinner party — if they even go to the party.
Reality: Ouch, don’t believe everything you read online! The truth is anyone can be an appraiser, and the industry needs people of all ages, identities, and learning styles to diversify an industry with a history of bias and discrimination. That means, given the hard work and dedication, you can be an appraiser. If you have a good eye for detail and a desire to make a positive impact in the real estate market, you’re in the right place.
To learn more about kickstarting your independent, lucrative, and highly rewarding appraisal career, check out our blog and stay tuned for our upcoming appraisal education launches! We’re excited for you to get started – you’re the real deal.
Comments