When you start working as a real property appraiser, you aren't pigeon-holed into working for just one type of employer; there are lots to choose from! Here’s a quick guide to the avenues for employment as an appraiser, and how they differ from one another.
Typically, these are the most common types of real property appraiser employers in the industry:
- Retail Consumers (Buyers & Sellers)
- Banks & Commercial Lenders
- Land Developers
- Mortgage Companies
- Home Appraisal Companies
The top 5 types of employers who hire appraisers.
Mortgage companies
Mortgage companies are a great place to begin your appraisal practice because there are plentiful work opportunities for all experience levels.
Similar to banks, mortgage companies are a great option for appraisers looking for work because they are a key component in the home buying process. They offer flexible loan options for buyers, and are more lenient with credit scores than banks, so they draw in a steady flow of business which makes them attractive for appraisers seeking work.
Though there are regulations (called Appraiser Independence Requirements) prohibiting lenders from associating with appraisers in ways that interfere with appraiser independence, a mortgage company may still use an in-house appraiser.
Appraisal Management Companies (AMCs).
AMCs are independent intermediaries between mortgage lenders and appraisers. They work to ensure that no appraiser can be influenced by the lender to appraise a property in any particular way.
Not only do AMCs provide mortgage lenders with neutral, independent appraisal work, but they serve many other purposes as well (e.g., administrative tasks for appraisers, maintain quality control and compliance standards, screening appraisers for proper licensing, and more). This makes the AMC a solid landing point for any new appraiser. You’ll have the support and resources of a network to fall back on, but also be able to work on a variety of projects throughout your career.
Banks & commercial lenders.
Banks and commercial lenders are the first of several larger-scale employers on our list who hire appraisers. Banks and commercial lenders offer loans for commercial purchase, expansion, and operation, as well as bank-funded home purchases. For this work, an appraiser needs to look through:
- Tax history
- Zoning
- Deeds
- Other contextual data
This information can often be obtained through a database. Then, at the property, the appraiser will look for property damage and consider potential property obsolescence.
While banks will often hire beginner and trainee appraisers, especially in a good market, commercial lenders do look for individuals licensed as commercial appraisers. So, if you’re looking to work for a commercial lender, you will need advanced appraiser education and training.
Consumers (retail sellers & buyers).
The first type of employer to hire appraisers are retail sellers and buyers—independent parties who need valuation of personal property. This can include art, clothing, and antiques (to name a few). It is typical of an individual or family who has recently inherited an estate to hire an appraiser to help them figure out what all that property is worth, and what to do with it.
That means when determining the value of personal property, you’ll need specific experience and knowledge to be able to find the best market for that property. This is a good job option for highly experienced and trained appraisers, especially those with extensive knowledge of niche markets, such as antiques.
Land developers
Land developers hire appraisers to determine a fair market value for plots of land. The key is determining the highest and best use of a plot of land—in other words, what is the most profitable and most feasible direction for this land, based on comparable sales and what the current market demands. For land valuation, property appraisers must consider the following:
- Location
- Topography
- Quality of land
- Accessibility
- Zoning
Land development is one of the most challenging and crucial specialties of real estate, not to mention one of the most exciting! If you’re interested in land appraisal, as with commercial appraising, you will need that advanced education and expertise to get your career going.
Appraisal allows you to be the boss.
If you want to be your own boss, appraisal is the right career for you. And luckily, you don't have to stick with just one path. The industry is full of entrepreneurs who take on a variety of jobs and make a healthy income. Start your education today and we will arm you with the tools you need to not only become an expert appraiser, but also thrive in making your appraisal practice your own.
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