What Is A Real Estate Appraiser? (Solution)

The term appraiser refers to a professional who determines the market value of an asset, notably in the real estate industry. Their opinion about the real and fair value of an appraised asset must be unbiased by using observations as well as relevant statistics, facts, and other information.


What is the role of a real estate appraiser?

The role of the appraiser is to provide objective, impartial, and unbiased opinions about the value of real property —providing assistance to those who own, manage, sell, invest in, and/or lend money on the security of real estate.

Do real estate appraisers make good money?

The average income for home appraisers is $60,040 as of 2020, according to PayScale, although a certified residential real estate appraiser may earn $100,000 or more, as they become more experienced. 1 A trainee earns considerably less with annual earnings before taxes as low as $20,000.

Is real estate appraisal a good career?

Yes, being an appraiser is a good career, because it’s in strong demand and offers a flexible working schedule. The profile is also non-sales oriented and comes with an excellent earning potential. Plus, field appraisers get to spend part of their workday out in the field inspecting properties.

How long does an appraisal take?

In real estate, a home appraisal typically takes two days to a week to fully complete. To complete the appraisal process, the mortgage lender must first order and schedule the appraisal, then gather data about the home. Finally, the appraiser needs to review the data to complete the appraisal report.

What is the difference between a certified appraiser and a licensed appraiser?

A certified residential appraiser can legally appraise a building with up to four dwelling units, regardless of the value of the property or its complexity. A licensed residential appraiser is limited to appraising less valuable and less complex properties.

Is becoming an appraiser worth it?

“Great flexibility and good income.” The amount of income of an appraiser earns depends on many factors, including license level, years of experience, and key competencies. On average, licensed appraisers earn $69,167 a year, certified residential appraisers earn $71,667, and certified general appraisers earn $87,685.

Is being a real estate appraiser stressful?

The median age of appraisers is close to 60 years. New people do not want to enter to work long hours for low pay and no benefits. They are always coming up with new report types and raising the bar of excellence. It makes it very stressful, and stress in the profession never takes a holiday.

Are appraisers in demand?

Job Outlook Employment of property appraisers and assessors is projected to grow 4 percent from 2020 to 2030, slower than the average for all occupations. Despite limited employment growth, about 6,300 openings for property appraisers and assessors are projected each year, on average, over the decade.

Is the appraisal profession dying?

Every year, for the past eight years, the number of active real estate appraisers has declined. The Appraisal Institute (AI) estimates that the number of appraisal professionals is currently shrinking at three percent a year and warns that sharper declines may be on the horizon as appraisers begin retiring en masse.

Is it better to be a real estate agent or appraiser?

Ultimately, while real estate agents can offer a valuable perspective on a given property’s purported value, only the appraiser can provide an official appraisal. Sellers may be satisfied to work solely with a real estate agent, but most buyers eventually hire both an agent and a separate appraiser.

Do appraiser trainees get paid?

Beginning appraisers are called appraiser trainees. They usually work part-time and are paid per appraisal. Appraiser trainees often make between $50 and $150 per appraisal, earning more with increasing experience and expertise. On average, they earn approximately $10,000 more per year than licensed appraisers.

How soon after appraisal is closing?

On average, it takes 47 days to close on a home, and typically, closing occurs around two weeks after the appraisal is completed.

How do I know when the appraisal is done?

While shorter forms can be done in as little as six hours, depending on their workload and the complexity of the home, the appraiser should have the report completed in less than a week. Generally, from the time the lender orders it, you can expect to see an appraisal report anytime between two days and one week.

What can hurt a home appraisal?

What Hurts a Home Appraisal? And 7 Things You Can Do to Fix Them

  • 1) Poor curb appeal.
  • 2) Your home’s interior needs a lot of attention.
  • 3) Your kitchen and bathrooms are outdated.
  • 4) Your bedrooms and laundry room are dark and small.
  • 5) Your basement is unfinished.
  • 6) Your home systems need replacing.

Real Estate Appraiser Career Overview

What what is a real estate appraiser, and what exactly do they do for a living? In the event that you seek work in the real estate business or decide to purchase or sell a property, you will get acquainted with this procedure. In the real estate industry, appraisal is the process through which real estate agents and homeowners determine the worth of a property that they desire to sell. If the seller orders a property appraisal, they will have an estimate of how much their property is worth.

Featured Online Programs

Through an approved online school, you may choose a program that suits your needs in terms of price, flexibility, and instruction. Quality real estate appraisals are a critical component of the process of purchasing or selling a home. Each property has its own set of attributes that contribute to the total market worth of the property. Homeowners have the ability to make alterations to their property that either increase or decrease its value. In order for mortgage loans to be approved, property taxation to be levied, and estate or divorce issues to be settled, appraisers must provide fair and acceptable criteria.


Real estate appraisers determine the market worth of various types of assets, such as residential and commercial buildings. Their work serves as the foundation for fairly appraising, selling, and purchasing real estate in accordance with the law. A real estate appraiser is required by law if you wish to make a purchase loan on a piece of property in order to ascertain the market worth of that piece of real estate. As a result, the lender will be aware that the amount you have sought is close to an accurate evaluation of how much money you require.

The following parts give in-depth information about the everyday responsibilities and abilities of an appraiser.


Real estate appraisers are concerned with developing procedures for determining the monetary value of property for their customers. This entails making meticulous assessments of property loss and finding the most equitable means of compensating clients. These experts are often employed full-time, with their work rotating between onsite and office assignments.. Because they may be required to produce reports on weekends, self-employed appraisers often work longer hours than their employees. A typical day for a real estate appraiser may begin with a trip to various homes to take notes on their attributes.

  • It is their job to evaluate information from the housing market and property databases in order to determine the monetary value of a property, and it is their job to transmit this information to the seller via written reports.
  • Strong critical thinking skills are required for this position; appraisers must use their own observations as well as data from a variety of sources to fairly assess the value of a property.
  • To be successful in this career, you must have good critical thinking abilities.
  • Additionally, complications may emerge throughout the assessment process, necessitating the need for real estate appraisers to find alternate solutions as rapidly as possible.
  • These appraisers also require great writing abilities in order to provide well-organized, comprehensive reports that reflect the worth of real estate and residences in which they work.
  • Being kind and nice in their dealings with consumers might increase their chances of receiving repeat business from those clients.
  • Real estate appraisers are needed in a variety of sectors.
  • According to the Bureau of Labor Statistics, the vast majority of real estate appraisers are employed by local government organizations.

Some appraisers prefer to refer to themselves as “real estate assessors” rather than “appraisers.” Individuals who acquire the skills and information necessary to function as an appraiser may be qualified to work as an auditor, cost estimator, or tax examiner as a result of their education and experience.

  • When working on-site, they frequently require measurement instruments to ensure that the property dimensions are correct.
  • They also frequently carry a notepad with them to jot down different impressions or information offered by the homeowner.
  • In the United States, real estate appraisers are often divided into two categories: commercial real estate appraisers and residential property appraisers.
  • In order to make sense of big data groups, they may turn to analytical and business intelligence software packages such as Palisade StatTools for assistance.
  • Many organizations need employees to be familiar with these (or comparable) software tools, or they will teach them on how to use them.
  • Commercial real estate appraisers are primarily concerned with the value of industrial and office buildings, land, hotels, and retail complexes, whereas residential real estate appraisers are concerned with the worth of individual residences.

In spite of the fact that most people identify real estate evaluation with the residential sector, business owners may require appraisals for a variety of reasons, including taxation and the taking out of new loans for new initiatives.


An appraiser may begin by investigating legal descriptions, sales, lease, and assessment documents that are associated with a particular property or set of properties. They next pay a visit to the property in order to obtain further information. Physically evaluating the interior and outside of the building, measuring structures to verify square footage and storage capacity, and taking pictures are all part of the process.

Consider External Factors to Determine Property Value

Real estate appraisers analyze public records for information on recent sales of comparable properties to assist them in determining the worth of a property. They also look at market trends and the surrounding neighborhood to see what they can find. Finding out the worth of property in the county and the kind and location of adjacent facilities, such as schools and retail complexes, are two examples of what you may do.

Maintain Property Records

Real estate appraisers, particularly those who work for local or state government organizations, are responsible for keeping track of changes to properties over time as part of their daily job. In this case, field inspections are performed in order to determine if property additions have raised the worth of a property or whether damage has decreased its value.

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Testify in Court

Real estate appraisers are occasionally called to appear in court as expert witnesses to assist in the resolution of issues arising from estate or divorce procedures. Occasionally, they are called upon to assist in larger instances involving real estate fraud or other difficulties. They are frequently required to provide the court with a description of their evaluation technique in order to maintain openness.

Prepare Written Reports of Their Findings

Real estate appraisers are required to generate written reports in which they express their conclusions. They provide the worth of the property, as well as an explanation of how they arrived at the amount they provided. A well-organized report that complies with appraisal standards includes evidence in the form of images; notes; and data on prior sales, leases, and valuations of the subject property and related properties, all of which are included in the report.

Financial Modeling

Real estate appraisers utilize the vast volumes of data they acquire throughout the valuation process to assist the real estate sector in the development of financial models for its properties. These models aid in determining the future values of several types of attributes. Professionals make use of specialized financial modeling software packages and keep up to date with current real estate market trends and conditions.


  • Those who work in residential real estate often have at least an associate’s degree in real estate
  • However, this is not required. Appraisers that work in commercial real estate are typically required to have a bachelor’s degree or higher. Most firms, regardless of speciality, desire potential employees to have a bachelor’s degree at the very least. Most real estate programs that educate graduates for appraisal employment involve training in financial management, real estate law, and statistical analysis
  • However, other programs are more specialized.


  • Real estate appraisers require fundamental math abilities in order to do their daily jobs, which include measuring structures during inspections and estimating the worth of a property. Understanding and designing financial models for real estate can be made easier with a working knowledge of more sophisticated mathematics principles. To be able to present their results through written reports, professionals must also have excellent written communication abilities. Employers want for appraisers who are able to think critically under pressure. Appraisers’ ability to examine data and draw appropriate judgments is based on their critical thinking and problem-solving abilities. Having these abilities also aids professionals in adjusting to unanticipated situations.


  • Appraisers must be able to utilize inductive reasoning to generate conclusions from the facts they have available. They must also be able to communicate well orally and in writing. This enables appraisers to have a better understanding of what customers want and to follow instructions from employers while preparing reports that comply with assessment standards. Professionals who perform physical inspections of a property must be able to observe up-close features of the buildings in order to be effective.


  • Knowledge of building and construction processes and materials is required of real estate appraisers, as is knowledge of building rules and zoning bylaws, as well as an understanding of how they could impact the value of a property. Successful real estate appraisers have a thorough understanding of real estate law as well as the ability to adhere to valuation standards in their professional activity. Most experts in the field of real estate assessment require a solid understanding of analytical financial analysis as a pre-requisite for their position. Moreover, they may need to understand how to apply business intelligence tools.

Learn more about how to become a real estate appraiser by reading this article.


  • GOVERNMENT AT THE LOCAL LEVEL Many real estate appraisers work for local government agencies, either as appraisers or as assessors, and are thus considered government employees. Their responsibilities may include the maintenance of legal documents as well as the performance of assessments for the purpose of determining property tax determinations on commercial properties. RESIDENTIAL REAL ESTATE Appraisers in the real estate sector may operate under the supervision of a broker or independently, with many of them specialized in residential properties. A significant part of their function is to assist in the development of realistic financial models for the housing market. GOVERNMENT OF THE STATE Many state government agencies employ a considerable number of real estate appraisers, whose skills are required for the maintenance of records that assess and value various properties. These specialists also play a role in the determination of commercial property tax rates and assessments. INTERMEDIATE CREDIT MANAGEMENT Real estate appraisers are frequently employed by intermediary organizations that provide cash for operations such as mortgage lending or loan broking. SUBDIVISION OF LAND Real estate appraisers analyze land on a regular basis and generate diagrams to aid in the documentation of their findings in appraisal reports. When it comes to subdividing property in the building sector, this knowledge comes in helpful.




  • The National Association of Real Estate Appraisers (NAREA) is a professional organization that represents real estate appraisers across the US. The National Association of Real Estate Appraisers (NAREA) was established in 1966 to enhance the real estate appraisal industry. Membership in the Appraisal Institute provides members with access to educational opportunities, employment aid, and recognition in the form of awards and designations
  • Appraisal Institute Providing education, specific credentials for members, and various publications on modern valuation concerns, the Appraisal Institute advocates for appraisers in real estate and other speciality fields. The American Society of Appraisers is a professional organization that provides appraisal services. The American Society of Appraisers (ASA) was founded in 1936 and is the world’s biggest interdisciplinary organisation for appraisers. Those working in the field of real estate appraisal can become members of the association to benefit from professional development opportunities and an annual conference. The Appraisal Foundation is a non-profit organization dedicated to the advancement of appraisal practice. The Real Estate Appraisal Foundation establishes the standards for the real estate appraisal industry that have been established by Congress. It provides optional guidelines for valuation specialists, including online and in-person seminars for real estate appraisers
  • The National Association of Appraisers is a professional organization. The National Association of Appraisers (NAA) works to promote the appraisal professions through a countrywide network of partner organizations and committees. Each year, members are invited to a summit, where they may network and take seminars on issues such as appraiser management.

How to Become a Real Estate Appraiser

Did you know that the career outlook for real estate appraisers is quite favorable? For the next five years, the predicted growth rate in employment for appraisers in the United States is 14 percent. Over the same time span, the average growth rate for all occupations has increased by twice as much. If you have an analytical mind and a passion for real estate, it may be time to explore a career as a real estate appraiser as a viable option. A real estate appraiser, often known as a real property appraiser, is someone who is hired to determine the worth of a home or piece of property.

An appraisal is the term used to describe this type of value. If you’ve ever wondered how a house obtains its price tag, you should know that an appraisal is frequently included in the process.

What does a real estate appraiser do?

Unbiased and impartial estimates or appraisals of the worth of a piece of real estate are provided by a real estate appraiser. Appraisals are created for a variety of objectives, including lease negotiations, mortgage loans, tax assessments, and more. Appraisers examine the attributes of the property and compare them to those of similar properties in order to assess its worth. When making their assessment, they take into account the following factors:

  • Identify the external condition of a building or structure
  • A room-by-room walk-through can help you determine the condition of the interior. Consider the value of facilities such as a completed basement or a swimming pool. Look for any infractions of safety or health codes.

The appraiser will compare the house to similar properties in the neighborhood after gathering information about it. This will allow them to produce an accurate assessment of its value. In order to be a successful real estate appraiser, you must have strong analytical, critical thinking, and writing abilities. Soft skills such as listening and verbal communication are just as vital as hard talents. As a result of having these skills, you’ll be well-prepared to comprehend your client’s demands as well as to finish the evaluation and convey your valuation properly to them.

They are performed by professionals.

An assessment typically takes an hour or two to complete, and you should have your report within a few days after submitting your request.

Real Estate Appraiser Salary

For the year 2021, the typical annual salary for a real estate appraiser is $59,510. It is possible to earn anywhere from $36,940 and $72,210 a year, and like with many other industries, this range will vary depending on your degree and work experience. As a Trainee Appraiser, your salary will most likely be on the lower end of the income spectrum, whereas the income of a Licensed or Certified Real Estate Appraiser will be on the higher end of the spectrum. Appraisers can work for big appraisal corporations, small local appraisal firms, banks, or operate on their own as independent contractors or consultants.

  • The experience of the particular appraiser
  • The size of the property
  • The location of the property
  • The type of property being appraised Damage to the property or the need for repairs

Real estate appraiser positions may be found on job search websites, and you can use this information to find out how much appraisers earn in your region.

How to Become a Real Estate Property Appraiser

Now that we’ve taken a deeper look at the function of an appraiser, let’s take a look at the stages that lead to becoming one.

1. Understand the minimum requirements to become a real estate appraiser.

Real Property Appraiser Qualification Criteria are established by the Appraisal Qualifications Board (AQB), which defines the minimal standards that prospective appraisers in the United States must achieve. To become a qualified or certified real estate appraiser, different states have different requirements — and some states require additional courses in addition to those required by the Appraisal Qualifications Board (AQB). The Appraisal Subcommittee (ASC) is a federal agency that governs the licensing and certification of real estate appraisers in different states.

There is a comprehensive list of state appraiser regulating agencies available on the ASC’s website – the organization responsible for your state will be able to give you with further information on state-approved courses, requirements, and tests.

2. Become a Trainee Appraiser.

A real estate appraiser trainee program is the next stage in the process of becoming a licensed real estate appraiser. The AQB stipulates that the following courses be taken:

  • Appraisal Principles and Procedures: 30 hours of instruction
  • National Uniform Standards of Professional Appraisal Practice (USPAP): 15 hours of instruction
  • Basic Appraisal Principles and Procedures: 30 hours of instruction
  • Basic Appraisal Procedures: 30 hours of instruction

Ensure that you have completed all course requirements by checking with your state’s appraiser regulating body in addition to taking these courses.

3. Find a Supervisory Appraiser.

Once you have finished your trainee classes, the next step is to locate a Supervisory Appraiser who will act as a mentor and oversee your appraisal assignments. You’ll need to accumulate about 1,000 hours of experience in no less than six months while working under the supervision of your Supervisory Appraiser. To locate a supervisor, look into your localreal estate appraiser groups as well as social networking sites such as LinkedIn andIndeed – these are excellent tools for locating Supervisory Appraisers in your region.

4. Complete required real estate appraiser courses.

You do not need a college degree to become a licensed professional, but you will need to finish extra courses in order to go from trainee to licensed professional. The following is an overview of the AQB’s bare minimum requirements:

  • Approximately 15 hours are spent on residential market analysis and highest and best use
  • 15 hours are spent on residential appraiser site valuation and cost approach
  • 30 hours are spent on residential sales comparison and income approaches. 15 hours for report writing and case studies in the residence hall.

Again, be sure to verify with your state’s appraiser regulating body to confirm that you’ve completed all applicable state and national criteria before beginning your appraisal.

5. Get approved to take the Licensed Residential Exam.

Once you have completed your courses and gained 1,000 hours of practical experience, contact your local state advisory board to register for the Licensed Residential Exam. The test includes a lot of what you learnt in your prior classes, including the following topics:

  • Real estate valuation types
  • Real estate market and investment analysis
  • And real estate valuation types Methods of determining value
  • Appraisal mathematics

Check with the organization that provided you with your appraiser training; they may be able to help you with test preparation recommendations. Because the test will consist of 125 multiple-choice questions, you should prepare by reviewing practice questions available on the internet. You’ll have the option of taking the test in a proctored environment near you or taking it from the comfort of your own home with someone watching you over a webcam.

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6. Submit your application to become a Licensed Residential Appraiser

Congratulations, you were successful in your exam. It is necessary to complete and submit your license application to the appropriate state licensing board, which may be found on the ACS website.

Real Estate Appraiser License

Trainee Appraisers earn their state-issued license after completing the relevant courses, accumulating the required number of hours of experience, and passing the Licensed Residential Exam. As a Licensed Residential Appraiser, individuals can conduct appraisals on their own once they have received their certificate of completion. As a licensed appraiser, you have the authority to make appraisals on your own without the involvement of a Supervisory Appraiser. The ability to assess “…non-complex one-to-four residential units with a transaction value less than $1,000,000 and complicated one-to-four residential units with a transaction value less than $250,000” is one of the many benefits of being a Licensed Residential Appraiser.

  • Non-complex frequently indicates that the property you’re appraising is average in contrast to the other properties in the neighborhood.
  • If you want to further your real estate assessment profession and work on more difficult situations, you can pursue certification as a Certified Residential Appraiser.
  • When it comes to purchasing a property, the assessments provided by appraisers are quite significant.
  • For more information on how to go into real estate, read more of our real estate postings or call us at (800) 888-9090 for a free consultation.
  • It is possible that the methods necessary to earn a real estate appraiser license will change from state to state, so you should seek legal counsel to confirm that you are following the right procedure.

Note from the editor: This piece was initially published in October 2018 and has been revised to ensure that it is as complete as possible. Originally published at 4:00 p.m. on August 6, 2021, and modified on August 13, 2021

The Appraisal Profession – AI Resources

A professional appraiser’s assessment on value is expressed in an appraisal. To prepare an assessment, the appraiser must do research into acceptable market locations, compile and analyze pertinent facts about a particular property in addition to using his or her own expertise, experience, and professional judgment to the situation. Any kind of property, including single-family houses, apartment complexes and condominiums, office buildings, retail malls, industrial sites, and farms, may necessitate the need for an appraisal.

It is common for them to be required if real estate is being sold, mortgaged, taxed, insured, or developed.

  • Mortgage lending
  • Tax assessments and appeals of tax assessments
  • And other objectives. the process of negotiating between buyers and sellers
  • Acquisition of private property by the government for the benefit of the public Mergers and acquisitions
  • Business dissolutions
  • Negotiations for a lease

What is the Role of the Appraiser?

Providing objective, fair, and unbiased assessments on the value of real estate, appraisers assist individuals who own, manage, sell, invest in and/or lend money against real estate as a security for their loans is the duty of the appraiser. When appraising real estate, appraisers gather a collection of facts, statistics, and other information about a specific property and then evaluate it to arrive at an opinion of worth. Each appraisal task tests the appraiser’s ability to use analytical skills in a practical setting, to exercise good judgment, and to interact effectively with clients and colleagues.

What does a real estate appraiser do?

Property and structures on that land are appraised before they are sold, mortgaged, taxed, insured, or developed by a real estate appraiser who evaluates the worth of the land and the buildings on it.

What does a Real Estate Appraiser do?

In addition to working in areas that they are familiar with, real estate appraisers are frequently aware of any environmental hazards or other considerations that may have an impact on the value of the property being valued. It is common for them to evaluate only one property at a time, and they frequently specialize in a particular sort of real estate, such as commercial or residential. Real estate appraisers are often responsible for the following tasks:

  • Verify the legal descriptions of real estate properties in public records to ensure they are accurate. Inspect both new and old properties, taking note of any distinguishing traits
  • Photo documentation of both the interior and outside of a property
  • To assist in determining value, look for “comparables,” or homes that are similar to yours nearby. Prepare written reports on the worth of the property
  • Prepare and keep up-to-date information on each individual real estate property

When determining the value of a property, appraisers take into consideration the property’s and surrounding area’s distinctive qualities, such as the presence of a nearby loud highway. A building’s foundation and roof, as well as any improvements that may have been carried out, are also taken into consideration by the inspectors. As part of the documentation process, appraisers may photograph the outside of a building to document its condition, as well as a specific room or feature. Following a site visit, the appraiser evaluates the worth of the property by taking into account factors such as similar house sales, lease records, location, view, past valuations, and income possibilities.

Are you suited to be a real estate appraiser?

Real estate appraisers all have their own unique characteristics. They tend to be entrepreneurial persons, which indicates that they are adventurous, ambitious, forceful, outgoing, energetic, passionate, confident, and optimistic in their pursuit of their goals. They have a strong sense of authority, are persuasive, and are motivating. Some of them are also investigative, which means that they are smart, introspective, and inquisitive in their thinking and actions.

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What is the workplace of a Real Estate Appraiser like?

Despite the fact that real estate appraisers work in offices, they spend a significant portion of their day in the field, performing site visits. During regular business hours, the majority of them work full time. The difference between time spent in the field and time spent in the office is determined by the speciality. Residential appraisers tend to spend less time in the office than commercial appraisers, who might spend up to several weeks studying material and generating reports on a single property if the property is large enough.

Real estate appraisers are normally employed full-time during regular business hours, with certain exceptions.

Real estate appraisers are also known by the following titles: A Certified Real Estate Appraiser is a professional who evaluates real estate.

How to Become a Real Property Appraiser

The prerequisites for becoming a Certified Residential Appraiser are as follows: in addition to meeting the standards given above, candidates must additionally fulfill one of the six alternatives indicated below.

Certified Residential Appraiser College-Level Education: Option1

  • Bachelor’s degree in any subject of study from an approved institution or university

Certified Residential Appraiser College-Level Education: Option2

  • An associate’s degree from a recognized college or university in a subject of study that is connected to the following:
  • Business Administration
  • Accounting
  • Finance
  • Economics
  • Or Real Estate are all possible options.

Certified Residential Appraiser College-Level Education: Option3

  • Completed 30 semester hours of college-level courses that address each of the specified topics and hours listed below:
  • The following courses are required: English composition (3 semester hours)
  • Microeconomics (3 semester hours)
  • Macroeconomics (3 semester hours)
  • Finance (3 semester hours)
  • Algebra, Geometry, or higher mathematics (three semester hours)
  • Statistics (three semester hours)
  • Computer Science (3 semester hours)
  • Business or Real Estate Law (3 semester hours)
  • And two elective courses from among the topics listed above or from among the following subjects: accounting, geography, agricultural economics, business management, or real estate (3 semester hours).

Applicants may choose to consider the instructions provided in Guide Note 10 of the Criteria regarding this option.

Certified Residential Appraiser College-Level Education: Option4

  • College-level examination program (CLEP®) tests from each of the following subject areas must be completed successfully in order to earn 30 semester hours of credit.
  • 3 semester hours of College Algebra
  • 6 semester hours of College Composition
  • 3 semester hours of College Composition Modular
  • 3 semester hours of College Mathematics
  • Principles of Macroeconomics
  • Principles of Microeconomics
  • 3 semester hours of Introductory Business Law
  • And 3 semester hours of Information Systems

Certified Residential Appraiser College-Level Education: Option5

  • Choices 3 and 4 together, or any combination thereof, that ensures coverage of all topics and hours specified in Option 3.

Certified Residential Appraiser Requisite Experience: Option6

  • Licensed Residential appraisers who have held their license for a minimum of five (5) years may be eligible to apply for a Certified Residential credential as an alternative to completing a four-year degree program. They must have no record of any adverse, final, and non-appealable disciplinary action affecting the Licensed Residential appraiser’s legal eligibility to engage in appraisal practice during the five (5) years immediately preceding the date of application for a Certified Residential credential.

What Is a Real Estate Appraiser?

A real estate appraiser offers you and your mortgage lender with an unbiased evaluation of the home’s market worth, which you may use to negotiate the loan. For homebuyers, a real estate appraiser can determine whether or not the home’s asking price is realistic and reasonable. If you’re a homeowner considering refinancing your mortgage, a real estate appraiser can assist you in determining whether or not your home’s value has grown, making it worthwhile to refinance your loan.

What skills are needed to be a real estate appraiser?

Real estate appraisers are qualified or trained experts that conduct house assessments by reviewing previous surrounding home transactions in order to determine the worth of a piece of property. The Appraisal Qualifications Board (AQB) establishes the education, experience, and examination standards that real estate appraisers must meet in order to be eligible for a state license or certification in their field of expertise. According to the Appraisal Institute, the education and experience requirements are divided into three categories: introductory, intermediate, and advanced.

  • A minimum of 75 hours of study is required, and the appraiser trainee is under the direct supervision of a qualified supervising appraiser in good standing
  • Licensed Residential Real Estate Appraiser: Requires a minimum of 150 hours of study and 1,000 hours of experience in no less than six months to get licensed in residential real estate appraisal. To become a Certified Residential Real Estate Appraiser, you must have completed at least 210 hours of formal study and 1,000 hours of practical experience in no fewer than 12 months. Certified General Real Property Appraiser:This designation requires a minimum of 300 hours of school and 3,000 hours of experience gained in no less than 18 months, of which 1,500 hours must be gained via nonresidential assessment work.

What distinguishes a licensed real estate appraiser from a certified real estate appraiser is more than just the amount of education and experience hours they have. Licensed Residential Appraisers, for example, can evaluate non-complex residential properties with one to four units that are valued below $1 million and complex residential homes that are priced below $250,000. Meanwhile, Certified Residential Appraisers are not restricted in their ability to provide residential evaluations on properties with up to four units based on their value or complexity.

In certain cases, the level of expertise and experience necessary by a real estate appraiser might be determined by the purpose of the evaluation. In addition, according to the Appraisal Institute®, appraisals may be requested or required for a variety of additional reasons. These are some examples:

  • During a refinancing, the value of a home is established. assisting house sellers in determining an acceptable sales price and assisting purchasers in determining a realistic offer price creating a starting point for the exchange or reorganization of residential property ownership, or for the consolidation of many properties under the ownership of a single individual

What do appraisers look for?

To arrive at a thorough assessment of a home’s worth, real estate appraisers assemble facts, figures, and extra information about a property — including preliminary research done before visiting the property — and present it to a client. The initial inquiry entails confirming the legal description of a residence with the appropriate public records agency in the area. When appraising a home, appraisers take note of the property’s distinguishing characteristics. The qualities that are being analyzed are as follows:

  • • Amenities • Condition • Interior • Exterior • Structure • Upgrades • Foundation • Car Storage • Appliances

The information gathered allows the appraiser to generate an appraisal report that will be used in conjunction with the other documents required to complete a mortgage transaction, such as the loan application. The Uniform Residential Appraisal Report (URAR) is the most often seen form in real estate appraisals. According to the Consumer Financial Protection Bureau, you are entitled to obtain a free copy of the appraisal report at least three days before your closing date for a conventional home purchase (CFPB).

  • Method of sales comparison: Appraisers evaluate the condition, construction, and characteristics of the home to those of similar homes that have recently sold in the neighborhood. Cost method: Appraisers determine how much it would cost to purchase a property that is identical to the one on which the house is located and then construct the equivalent house on that lot. This is, in essence, the cost of replacing the item. Method of obtaining income: This method, which is frequently used for investment or rental properties, involves estimating the projected rental income of the property being acquired or the revenue of comparable homes in the area. Appraisers utilize this information to compute the house value that would provide the rate of return that the average investor would demand for a property of a similar size and condition.
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How to find a real estate appraiser near me

Most of the time, while purchasing or refinancing a house, you are not permitted to shop around for an appraiser. You may find the appraisal charge on page 2 of your loan estimate, under the heading “Services you cannot shop for.” Mortgage lenders select the appraisers for their home loan transactions, and they often collect an appraisal fee at closing, which runs from $300 to $400 in most instances. Comparing loan estimates from different mortgage lenders is the most effective approach to discover whether or not you are being paid a competitive appraisal price.

When you’re ready to sell your house, you may engage an independent appraiser to assist you in determining the best selling price for your property.

Keep in mind that a house assessment is an additional investment that may or may not be justified in all cases.

What happens next with a home appraisal?

The outcome of your house appraisal will have a significant impact on your future steps. An appraisal of your house that is equal to or greater than the purchase price indicates that you are eligible to proceed with the deal. A lower-than-expected appraisal, on the other hand, may put a stop to your home-buying aspirations. If you are dissatisfied with the appraiser’s estimate of the value of your future house, you have the right to contest the report and have it reviewed. To contest the report, you’ll need to explain in writing why you disagree with it and give evidence to support your position.

You might get help from your real estate agent by asking him or her to look for previous house sales in your neighborhood that may not have been taken into consideration during the appraisal.

Can I challenge a low appraisal?

In order to fight a low appraisal, you must first request that your lender get a second appraisal, however they are not compelled to do so if you do so. Also bear in mind that if you are given a second appraisal, the cost of the second appraisal will most likely be passed on to you at closing, just as it was for the first, unless you can negotiate a lower price with the seller prior to closing. If an appraisal results in a value that is much lower than the purchase price, your lender may demand you to make up the difference at closing or may refuse to approve your mortgage application.

Other grounds for contesting an evaluation include evidence of appraisal bias or contradictions in the report.

Appraisal & Valuation

During the past year, members of the National Association of Realtors (NAR) have recognized many valuation concerns that are affecting real estate transactions. The majority of the complaints are with appraisals, particularly the rising use of automated or alternative valuation techniques, a perceived lack of appraisers, charges of prejudice in the assessment process, and the difficulty in attracting new and diverse appraisers to the industry.

I am a real estate professional. What does it mean for my business?

Alternative valuation methods, such as automated or alternative valuation methods: Many in the housing sector, including the National Association of Realtors (NAR), support the importance of appraisals and their contribution to the safety and soundness of the mortgage loan system. Although AVMs are increasingly being used for valuation reasons, as indicated by the decisions of both Fannie Mae and Freddie Mac to accept data driven values lieu than conventional in-person appraisals for certain, lower risk purchase transactions, there is still a need for human judgment.

  • A Shortage of Appraisers: The number of appraisers who leave the profession is decreasing at the same time that the number of new appraisers entering the field is decreasing.
  • There are other potential impediments to entry, such as educational requirements, that might be affecting the number of new appraisers entering the market place.
  • Earlier this year, the Appraisal Qualifications Board (AQB) revised the Real Property Valuation Criteria to provide more flexibility in meeting the college-level education requirements for appraisers while also reducing the number of experience hours required.
  • It is now looking at alternative means of providing trainee appraisers with the necessary instruction.
  • allegations of discrimination in the assessment process: Over the last two years, there has been a significant increase in the number of media reports highlighting allegations of prejudice in the appraisal process.
  • The Federal Home Loan Bank of New York (Freddie Mac) issued a report in Fall 2021 based on their own appraisal data that reveals that when a property is in a minority tract, it is more likely to obtain an assessment that is lower than the contract price.
  • As a result of the Biden Administration’s strong interest in this subject, the Interagency Task Force on Property Assessment Valuation Equity, or PAVE, was established, which is directed by Secretary of Housing and Urban Development Marcia Fudge.
  • The National Association of Realtors takes all complaints of discrimination seriously and encourages a thorough investigation into the matter.

NAR Policy

Due to the importance of real estate assessments to the overall health of the real estate business, REALTORS® support and promote reliable, independent appraisals of real property. When real estate is valued in a trustworthy manner, it ensures that the value of the real estate is sufficient to secure the mortgage, protects the mortgagor, allows secondary markets to have confidence in the mortgage products and mortgage backed securities, and fosters public confidence in the real estate industry.

Legislative/Regulatory Status/Outlook

In a hearing held on June 20, 2019, the House Financial Services Committee, Subcommittee on Housing, Community Development, and Insurance examined the topic of affordable housing “What is the value of your home? This report provides an overview of the appraisal industry.” Recently published study suggests that residences in majority-black communities are valued at nearly half the price of homes in neighborhoods with no black residents. The hearing focused on this finding. The National Association of Realtors is currently investigating this problem and working with partner groups to ensure that house appraisals are fair.

2852, the Homebuyers Assistance Act of 2019, legislation that would grant certified residential appraisers the right to conduct valuations on FHA-insured homes, which was introduced on May 20, 2019.

On September 10, 2019, the measure was passed by the House of Representatives in the United States.

Senate Republicans John Thune (R-South Dakota) and Jon Tester (D-Montana) presented S.

The bill would expand the pool of appraisers who are eligible to conduct appraisals on FHA properties, but it would not impose any additional education, training, or competency requirements on any appraiser who is currently conducting FHA appraisals, nor would it impose any additional requirements on appraisers who do not wish to conduct FHA appraisals.

The National Association of Realtors (NAR) backed this legislation.


In addition, it allows the Appraisal Subcommittee of the Federal Financial Institutions Examination Council to adjust annual registry fees for appraisal management companies, requires the disclosure of appraisal fees in the case of an appraisal coordinated by an appraisal management company, allows nonprofit organizations and institutions of higher education to receive certain grants and names a designee of the Department of the Treasury to the National Registry of Appraisers.

The measure was passed by the House of Representatives on September 19, 2019, according to a press release.

Current Regulatory Activities

The National Association of Realtors (NAR) submitted comments to the Federal Housing Finance Agency (FHFA) on February 26, 2021, in response to the FHFA’s Request for Information on Appraisal-Related Policies, Practices, and Processes (RFI). The National Association of Realtors provided input on several of the questions posed by the Federal Housing Finance Agency in the RFI, with a particular emphasis on concerns related to risk in the valuation space, the role of technology, and discrimination in appraisals and other valuation products.

The National Association of Realtors also encourages innovation in the valuation area and provides allowances for a variety of assessment types, depending on the needs of the transaction.

Past Regulatory Activities

Several federal agencies (collectively “the Agencies”) adopted a final rule on September 27, 2019 that raised the threshold for requiring an appraisal in residential real estate transactions from $250,000 to $400,000. The rule was adopted by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively “the Agencies”). Federally linked transactions involving less than $400,000 in real estate will necessitate an assessment rather than a comprehensive appraisal to determine the value of the property in question.

The National Credit Union Administration (NCUA) Board of Directors announced a final rule on July 18, 2019, raising the threshold below which appraisals are not required for commercial real estate transactions from $250,000 to $1,000,000.

As part of the rule, it was necessary to include Section 103 of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 into the rules.

At the instruction of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac launched a multi-year program on May 22, 2018 that would study alternatives for improvements to the Standard Appraisal Dataset (UAD) and uniform appraisal reporting forms, and offer recommendations on such changes.

Fannie Mae and Freddie Mac are collaborating closely with the National Association of Realtors® (NAR) and other stakeholders throughout this process, which includes hosting engagement sessions with REALTORS® and NAR personnel.

The Federal Deposit Insurance Corporation (FDIC), the Comptroller and Auditor General (OCAG), and the Board of Governors of the Federal Reserve System (collectively the Federal Banking Agencies) agreed with NAR’s previous comments and raised the appraisal threshold for commercial real estate Federally Related Transactions from $250,000 to $500,000.

A public Appraisal Qualifications Board (AQB) meeting held in Washington, DC on February 1, 2018, resulted in the adoption of revisions to the Real Property Appraiser Qualification Criteria by the board.

The Certified Residential certification education requirements can be met with a Bachelor’s degree in any discipline or an Associate’s Degree and/or completion of 30 credit hours in appropriate topics, depending on the field of study.

In order to become a Certified Residential appraiser, licensed residential appraisers must complete five years of work experience in addition to the academic requirements. In addition, the number of experience hours required for all levels of appraiser certification has been lowered.

NAR Committee

Committee on the Appraisal of Real Estate


The word appraiser refers to a specialist who determines the market worth of an item, which is particularly important in the real estate business. An appraiser is required to behave independently of the parties involved in a transaction, such as the buyer and seller. Their judgment regarding the true and fair worth of an assessed item must be neutral, and they must base it on observations as well as pertinent data, facts, and other pieces of evidence. Depending on the circumstances, the appraiser may choose to give their results in either a written or conversational format.

How Appraisers Work

Appraisers seek to put a monetary value on goods such as jewelry, art, jewels, and family heirlooms by determining their market worth. However, their services are mostly employed to evaluate the worth of real estate. Because of the lack of liquidity associated with assets such as these, investors often hold appraisers in high respect for their work. All appraisers are supposed to be on the lookout for and take note of every feature and attribute that may have an impact on the value of a particular asset or property.

It is also possible that obstructions caused by surrounding structures would reduce the value of a property, and the general condition of the building and grounds will be taken into consideration.

They may also take into consideration any earlier valuations of the same property.

Generally, people and companies seek the services of appraisers when they just want to know the worth of a piece of property or when they want to sell a piece of equipment or machinery.

Key Takeaways

  • Appraisers are professionals who determine the market worth of an object, such as jewelry, art, jewels, family heirlooms, and real estate
  • They are also known as appraisers. All appraisers must function independently of the purchasing and selling parties, and their views must be neutral
  • They must also maintain confidentiality. A person seeks the services of an appraiser when he or she want to obtain an appraisal of a valuable item or sell one. Property appraisers are employed by municipalities to assist them in determining property taxes.

Special Considerations

The majority of appraisers, particularly those who work with real estate, are required to be licensed by their respective states in order to carry out their occupation. This requires a specific level of education and work experience, as well as the completion and passing of an examination administered by the state licensing board. Many appraisers, particularly those who work with real estate, are required to be licensed in their respective states. Appraisers spend the majority of their time establishing the worth of a single item at a time, which is particularly important when it comes to real estate.

For example, a commercial real estate appraiser would concentrate on the market for office buildings, hotels, retail sites, and other assets that have the potential to generate revenue.

Condominiums and single-family houses are examples of what is meant by this.

A residential appraiser is generally responsible for properties that have no more than four dwelling units on the premises. For the purposes of an appraiser, larger-scale assets, such as multi-unit apartment complexes, are more likely to be classed as commercial properties than residential ones.

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