Earning an Appraisal License

1) What Is Real Estate Appraisal?

Real estate appraisers are responsible for estimating the value of a property. There are numerous reasons a property might need appraisal, including for the determination of property tax, to confirm or set a sales price, to settle an estate, to aid in a legal settlement such as divorce or bankruptcy, or to confirm a property will be adequate collateral for mortgage purposes.

Most real estate appraisers focus on one type of real estate, such as commercial or residential, but they are trained to give accurate appraisals of any type of property--from a shopping center to a parcel of farmland.

No matter the property type, an appraiser will assess the building based on the following: location, unique characteristics, the condition of the foundation and roof, the effectiveness of any renovations that might have been carried out, and the character of the surrounding area which includes traffic, architecture, and neighborhood trends. Taking into consideration the costs of other homes in the area, previous lease records and appraisals, and several other factors, the appraiser will then write a report that details an estimated value.

2) Degree Programs in Real Estate Appraisal

To pursue a career in real estate appraisal, most states require that you hold a real estate appraisal license. In order to obtain this license, an aspiring appraiser must have a bachelor's degree or the equivalent credit hours. If you are changing careers, you might find it easier to attend real estate school online, where online real estate courses can be completed at your own pace without taking you away from employment or family commitments.

Bachelor's Degree in Appraisal: The bachelor's degree in real estate appraisal will likely be sufficient to meet the education requirement for licensing. Many appraisers begin with their bachelor's degree in a related field, such as finance, economics, or various real estate disciplines. Typical courses can include tax law, market research, communications, ethics, mathematics, and construction disciplines.

Master's Degree in Appraisal: Several requirements will be necessary to earn your master's degree in real estate appraisal, including the appropriate for-credit real estate courses, demonstration of internship or work experience, and the completion of several comprehensive exams that test your knowledge and readiness for a professional designation. Many real estate schools require you to hold an appraisal license to apply for the program.

PhD in Real Estate Appraisal: The Member of the Appraisal Institute designation, or MAI, is often considered the equivalent to the PhD. Earning your PhD in real estate studies with a particular emphasis on the course requirements for appraisers can offer an even broader spectrum of careers.

3) What You Can Do With a Real Estate Appraisal Degree

A degree in real estate appraisal can open the door to many other careers in the real estate field. With your skills and experience, you could also consider the following careers:

• Home Inspector
• Real Estate Agent
• Real Estate Broker
• Property Manager
• Real Estate Assessor
• Land Development
• Real Estate Research
• Real Estate Counseling
• Life Insurance Firms
• Government Agencies
• Mortgage Companies
• Banking Industry

4) Real Estate Appraiser Career Trends

Unlike other careers in real estate, appraisers might not be affected by an economic downturn--in fact, they might wind up with more work. Appraisers are hired during real estate sales, but they also handle probate cases, divorce settlements, and foreclosures.

The constant level of work for real estate appraisers offers a good outlook for the future. The Bureau of Labor Statistics expects a 17 percent increase in jobs through 2016, which means the profession is growing faster than average occupation growth. Independent fee appraisers are expected to see the strongest career growth.

5) Salary Information for Real Estate Appraisal Careers

According to statistics presented by the Bureau of Labor Statistics, real estate appraisers made a median wage of $47,370 in 2008. Independent fee appraisers generally make more than their colleagues, as they can set their own hours and fees.

A survey conducted by the Appraisal Institute in 2005 found that 34 percent of appraisers claimed incomes of more than $100,000 per year; 7 percent of those made between $150,000 and $200,000 per year, while another 9 percent earned $200,000 or more.

6) Career Skills of Successful Real Estate Appraisers

Real estate appraisers build numerous skills that are helpful in many professional areas. This list of skills includes:

• Visual Inspection. While working as a real estate appraiser, your visual inspection skills will be finely honed. You might soon be able to tell the basic value of a home with only a quick glance at the structure and a firm understanding of the area.
• Real Estate Records Search. Appraisers must know where to find records, and how to get them quickly. As a result, appraisers have top-notch research skills, both with traditional file research and Internet methods.
• Property Context. Understanding how the location of a certain property affects the price can help you--and your clients--make quick decisions about what properties are worth the time to survey and which ones are best left alone.
• Real Estate Market Comparison. As trends move through the real estate business, knowing what might come next is the key to staying on top of it. With a constant eye to the changing market, making comparisons and planning for the future can become your strong suit.

7) Real Estate Appraisal Licensing and Certification

Licensing is very important for real estate appraisers. Federal law requires a state-issued license or certification for those appraisers involved in transactions of $250,000 or more. Every state must conform to the professional requirements set by the Appraisal Qualifications Board (AQB) of The Appraisal Foundation. Education for the license includes a course and exam on the Uniform Standards of Professional Appraisal Practice (USPAP).

Other state-based licenses might be required, depending upon your career intentions:

• State Certified General Real Property Appraiser License. This allows appraisal of any property, regardless of its value.
• State Certified Residential Real Property Appraiser License. Appraisal of residential units up to any value is allowed, but other appraised property must be less than $250,000.
• State Licensed Residential Appraiser License. This license allows the holder to appraise residential units up to a worth of $1 million, and commercial property up to $250,000.

Continuing education is a requirement for keeping the appraisal license up to date. Currently, the AQB requires 14 hours per year of instruction, as well as a USPAP Update Course completed every two years.