So, you are driving across the town and you see a house with a signpost saying “for sale.” Maybe there is no price tag hanging, but you know this house has a price tag. But who decides that price tag? Yes, the house needs to have a competitive price tag so that the buyers feel interested in buying it.
More so, the price tag should also favor the seller and help them gain some profit out of the house. This is where a real estate appraiser comes in.
Their role is to evaluate the house’s price and make it worthy of sale in the housing market. Who are these real estate appraisers? If you are wondering that, then this article might be worth reading. Here, I have listed down all the roles and responsibilities of a real estate appraiser. Keep reading to find out their parts in the real estate industry.
What Is a Real Estate Appraiser?
A real estate appraiser or a property appraiser is someone who is needed when evaluating a house and its value in the market. This process of assessing the prices of the house or a villa is called appraisal of the house. So, if you are thinking about how a house gets its price, then you have the property or real estate appraiser to thank for it.
You might know about real estate property appraisers in the residential house sector. But they also work in commercial real estate. They are responsible for determining the value of different types of real estate properties, including office buildings, hospitality, lands, shopping centers, hotels, and more.
A real estate appraiser works to provide an objective and unbiased opinion regarding the value of a house. They offer an unbiased value of the property, helping both the buyer and the seller in the process.
How Does A Real Estate Appraiser Appraise A House?
Here are some of the most common steps the real estate appraisers follow to provide a house or a property an unbiased value –
A Visit To The Property
The real estate appraiser has to pay the house they want to appraise a visit in person. They go to the property and start an inspection for the evaluation. Sometimes, they First determine the exterior condition of the property they are about to appraise. They walk through room by room to assess the interior condition of the house. Sometimes, the process would also involve the appraiser taking photos of the property.
A real estate appraiser also goes through the different amenities the property could be providing to the buyer. These amenities include a swimming pool or the finished basement of the property. Once the inspection is done, they document all the data they have accumulated throughout the inspection process.
Analyzing The Accumulated Data
Now, the evaluation of the analyzing process starts. They start evaluating the property based on the data they have gathered. While doing the same, a real estate appraiser also takes similar properties into account. They follow different parameters like the location of the property, its condition, and the key features before coming to a conclusion. The appraiser also looks for any possible violation of safety or health codes when analyzing the data at hand.
Comparing With The Market Trend
Although the house is in good condition and good value because of the amenities, it might fall short when compared to the current market trends. The market trends of a particular region can be detrimental factors affecting the property’s appraisal.
Updating Property Records
Both the private and the public property records of a property are important and integral parts of a property’s evaluation. Noting down and transcribing the property features and some tangible changes can also affect a property’s appraisal.
Writing Appraisal Resorts
A real estate appraiser sometimes has to summarize the property’s findings after inspecting and analyzing it. Sometimes, they do it verbally; sometimes, they must write it down for the employers.
Once they follow the parameters discussed above, they accumulate information about the property they will appraise or evaluate. Then, they use their skills to assess the price of the property.
Must-Have Skills For A Real Estate Appraiser
A real estate appraiser needs strong analytical skills, critical thinking, and strong writing skills to become a successful real estate appraiser. They also need to have a set of different soft skills. Some of those skills include having good verbal communication and understanding the needs of the clients. They use a mixed group of their skills to determine the values of the real estate properties they evaluate.
This allows them to provide a clear and real estimation of the property they appraised. These professionals usually work with the mortgage lenders and the house sellers. The whole process of appraising a property takes around an hour or two to complete.
The more experience a real estate appraiser has, the better they are at providing a good property valuation. But these skills are the core of a real estate appraiser’s career. Here are some of the skills that one needs to have to become a great real estate appraiser –
Hard Skills
Here is the complete list of the hard skills a real estate appraiser needs to advance in their career –
Analytical Skills
The calculation a real estate appraiser has to go through is difficult. Because it involves using complex and numerous data they collect during the real estate evaluation process. Some of these calculative processes include determining square footage, conversion of the units of measure, and creating a long-term price trend.
Writing skills
A real estate appraiser verbally reports what they find in their inspections. But, sometimes, they do have to provide the findings and the reports in detail and through writing. That is why it is integral for them to have clear, concise, and professional writing skills.
Advanced Knowledge In Real Estate
An appraiser needs to know the nitty-gritty of the real estate industry. When they are working to appraise a house, they must know about how the sales process takes place. Usually, they benefit from a complete and detailed understanding of property tax law and real estate. They become more and more experts through their experience in the real estate industry, which holds a key role in their salary and their demand in the market.
Real Estate Recordkeeping
A real estate appraiser needs to keep updated regarding the public property records. They have to also create a new record for using them internally. It is essential to have a clear knowledge of the recordkeeping of public real estate properties.
Soft Skills
Aside from having the necessary hard skills, soft skills are also the key contributors to the success of a real estate appraiser.
Verbal Communication
Yes, writing skills are necessary. However, having good verbal communication skills helps a real estate appraiser relay the information related to their findings. Strong and well-developed verbal communication can help a real estate appraiser go ahead in their career.
Customer Service
Interaction with customers is mandatory when working as a real estate appraiser. Their skills and competencies to provide courteous services to their clients and customers can make the job of appraising a property easier for them. Also, their skills to provide good customer service determine the next list of clients they will have going forward.
Time Management
Appraisers and assessors usually have a difficult time constraint. They have to work against the clock and provide the clients with accurate valuations of the property they are responsible for.
Their client (a seller) might be asking for an evaluation of a property as soon as possible because they have a buyer waiting to strike a deal. So, a real estate appraiser needs to be quick both on their feet and in their mind to provide an accurate valuation. This job requires efficient time management on their part.
Critical Thinking
Data do not lie. However, the data related to a specific valuation can often be odd and may not add up. An efficient real estate appraiser is an efficient critical thinker. They can take control of the situation at hand and provide a correct evaluation of the property in the face of complexity.
Real Estate Appraiser Salary
According to Hubspot, Real Estate Appraisers have a salary of $61,340 per year. The income also ranges between $36,940 and $72,210. However, the amount a real estate appraiser makes per year depends on their education and the experience they have gathered over the years.
If someone is just starting out their career as a real estate appraiser, their salary would be lower than a seasoned professional in the industry. The real estate appraisers usually get paid for each house they appraise. Some positions allow appraisers to work on the basis of a salaried individual. In that case, they have to work for an agency that employs appraisers as salaried employees.
What Affects Real Estate Appraiser Salary?
If you are planning to choose a career as a real estate appraiser, then here are some factors that might affect your salary and growth –
- Certifications for appraisers and the experience one has in the industry.
- Appraiser’s location.
- Property size.
- Property Location
- Damage or repair done on a property.
- The type of property they are evaluating to appraise.
If you are working independently as a real estate appraiser, it can turn out to be a very lucrative career for you. But there is one downside to this. You will be working by yourself, and that includes working longer hours.
Pave Your Career Path As A Real Estate Appraiser
I believe you have a clear understanding of what a real estate appraiser stands for and what their skills and responsibilities are. Now, if you want to develop your career as a real estate appraiser, then go through the steps provided below –
1. The Minimum Requirements
According to the Appraisal Qualifications Board, there is a set of qualifications one needs to have to become a certified real estate appraiser. An appraiser needs to meet all of these qualifications to succeed in this industry. However, the training someone needs varies from one state to the other in the US. There are also some state-specific courses that the appraisers need to have.
You can start by heading over to the ASC website to find out the list of state appraiser regulatory agencies. You can communicate with the state’s agency and find out about the state-affiliated courses and competencies you need to get started.
2. Start As A Trainee/Apprentice
You can start as a trainee appraiser and take the courses that the AQB requires. Here is a list of courses you can take –
- Basic Appraisal Principles
- Basic Appraisal Procedures
- National Uniform Standards Of Professional Appraisal Practice
Also, as said earlier, confirm with the state’s appraiser regulations about the courses they require. Once you have the appraiser regulatory agency of the state ensure all the courses needed, you can get the courses necessary for your career.
3. Work Under A Supervisory Appraiser
If you are done taking the necessary trainee courses, it is time for mentorship. For this, you have to look for a supervisory appraiser and work with them closely. This will allow you to understand the efficiency, skills, and practices of a professional skilled in the industry.
It would help if you gain experience working for 1000 hours under a supervisory appraiser in the past six months. Finding a skilled and seasoned real estate appraiser does not have to be hard. You will find one of them from the local real estate appraiser organizations and platforms such as LinkedIn & Indeed.
4. Take Advanced Course
You do have the trainee courses. But, if you really want to take a high jump, you have to enroll for advanced-level courses. This will help you become a licensed professional from being a trainee. Go through the minimum requirements of AQB and get these necessary courses for becoming a successful real estate appraiser –
- Residential Market Analysis & Highest and Best Use.
- Residential Report Writing & Case Studies.
- Residential Appraiser Site Valuation Cost Approach.
- Residential Sales Comparison & Income Approaches.
Most of these courses require around 15 hours to 30 hours in total. Also, it would be best if you checked with the state regulations of real estate appraisers and confirm that you have the courses necessary.
5. Appear For Licensing Exam
To become a licensed real estate appraiser, you must appear for the Licensed Residential Exam. You are ready to take the exam once you have the courses, education, and 1000 hours of working experience under a real estate appraiser. This exam will help you achieve the license you have been dreaming of all this time.
You can also contact the organizations you have taken your real estate appraiser courses. They might help you with practice courses and guidance. The exam will require you to answer 125 questions. So, prepare well if you want to pass early.
6. Get Licensed
Once you pass the exam, you are ready to submit the license application to the licensing board of the state. Head over to the ACS website to start getting your licenses from there. A trainee appraiser must complete all the necessary coursework, pass the residential exam, and serve the training hours under a supervisory training appraiser.
Should You Become A Real Estate Appraiser?
Real estate appraiser is a necessary role in the real estate industry. They are licensed and experienced professionals helping sellers and buyers when selling or buying a house. If you are thinking from a financial perspective, it is needless to say that it is a rewarding career. If you are considering building a career on this, you can follow the suggested ways and steps mentioned here.
Hopefully, this article provided you with the valuable information you sought. Reach out to us through the comment section if you have additional queries.
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