Lots of “moonlighting” happens in real estate – and for good reason. Diversifying your skillset adds expertise and leads to new business ventures. It also keeps you profitable when, say, one part of your business navigates a downturn while another thrives.
One of the more common “moonlighting” scenarios many real estate appraisers and real estate agents wonder about is: Can you be a licensed appraiser and a licensed real estate agent at the same time?
The short answer is – yes! That’s a “yes” with a few ethical and legal caveats you should consider. Keep reading for all the details.
Appraisers Can Become Real Estate Agents (& Vice Versa)
Licensed real property appraisers can also be licensed real estate agents, and vice versa. This is known as dual licensure. Ethically and legally, however, you must only function in one capacity per transaction. Your state’s real estate commission and appraisers board set this standard. The Uniform Standards of Professional Appraisal Practice (USPAP) — the recognized ethical and performance standards for the appraisal profession — back this standard.
USPAP requires appraisers to be independent, impartial, and objective in every assignment. This means, for example, you can't appraise a house you’re also listing for sale as an agent. It would be difficult for you to remain independent, impartial, and objective in your appraisal if you did.
We'll explore the ethics of dual licensure in more detail a little later.
License Requirements For Appraisers & Real Estate Agents
Becoming dual-licensed as an appraiser and a real estate agent means you’ll go through two separate processes to earn each license. Many appraisers who are also licensed real estate agents began their careers in real estate and pivoted to appraisal over time. The appraisal licensing process takes a bit more time than that of real estate.
To become a real property appraiser, you’ll follow the steps established by your state’s appraiser board and The Appraisal Foundation’s Real Property Appraiser Qualification Criteria. To become a real estate agent, you’ll follow the steps established by your state’s real estate commission.
Be sure to research your state’s individual licensing requirements before starting down your path.
| Steps to Become a Licensed Residential Appraiser* | Steps to Become a Real Estate Agent | |
|---|---|---|
|
Education Requirements |
|
|
| Experience Requirements |
|
None |
| Exam Requirements |
|
|
|
Average Time Commitment to Become Licensed** |
6+ Months | 2-6 Months |
|
Licensing Guides For More Information |
How to Become a Real Property Appraiser | How to Become a Real Estate Agent |
*The licensed residential appraiser license is the entry-level license that allows you to appraise most residential properties independently. Learn more about the different appraiser licenses.
**Depends on your state requirements
The Benefits of Being Licensed in Appraisal & Real Estate
There are many benefits when you’re a dual-licensed appraiser and real estate agent.
Diversify Your Skills & Income
The biggest benefit is the opportunity to diversify your skills, business, and income. As a licensed appraiser, you can perform appraisals for individual clients, banks, lenders, attorneys, government agencies, Appraisal Management Companies (AMCs), and more. As a licensed real estate agent, you can help all kinds of clients buy, sell, and lease property.
Building these two healthy businesses separately means you have two reliable income sources. If, for example, one experiences a downturn, the other can help you stay comfortable — and vice versa. Plus, eventually, you might choose to focus on one area and sunset your career in the other.
Dual Licenses Mean In-Depth Understanding
Holding dual licenses means you’ll have an in-depth understanding and expertise in both industries.
For instance, on the real estate side, you’ll understand property valuation on a deeper level. This will help you better communicate with clients about a property’s worth and a potential sale or offer price. You’ll also be able to provide more reliable Broker Price Opinions (BPOs), comps, and insights on home features and renovations that add value.
On the appraisal side, you’ll have deeper insight into the local real estate market and area neighborhoods. You’ll understand the outside factors that influence property values and be able to gauge property investment potential with a more data-minded approach.
Deeper Knowledge Leads to Better Collaboration
Developing your skills in both areas often leads to better collaboration with both current clients and potential ones. Clients will know they have an expert they can call on when they need a trusted agent or appraiser — and well-rounded advice. Your referrals also have a great chance of growing since you’re licensed to provide both services.
Ethical & Legal Considerations to Remember
There’s a golden rule when it comes to being a dual-licensed real estate agent and appraiser.
You cannot serve as a real estate agent and an appraiser in the same transaction.
It’s a conflict of interest, and it undermines public and client trust in both capacities.
It's important to understand your state laws governing dual licensure of agents and appraisers as well as The Appraisal Foundation standards.
In every transaction, choose to serve in one distinct role and ensure that your clients and all others involved in the transaction understand your role.
Doing so will protect your fiduciary duty to your clients as a real estate agent AND your impartiality and objectivity as a real property appraiser. You can’t appraise a property where you stand to gain a financial interest, for example, and you shouldn’t list a property you appraised. Doing so risks serious legal consequences.
Other Dual License Opportunities in Real Estate
There’s a world of options for appraisers — and any professional who works in real estate — when it comes to dual licensure. Appraisers and agents can become real estate brokers, mortgage loan originators (MLOs), home inspectors, or property managers. All these professions naturally complement each other in your business and your skillset.
The most important thing to remember?
Follow your state laws on dual licensure for each profession and act accordingly.
It’s safe to say you should always serve your client in one capacity in any assignment or transaction — and ensure your client understands your distinct role. Doing so will help keep you out of sticky situations.
Explore Opportunities in Appraisal, Real Estate, & More!
Dreaming of becoming an appraiser? Get familiar with the appraisal licensing process. Not sure where you want to land in real estate? Take the Real Estate Career Navigator Quiz! We'll help you find your best fit in real estate and train for your successful career with our award-winning online education.
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