How to Become a Real Estate Appraiser

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Have you ever wondered how much a house is worth? Whether you are buying or selling or just interested in seeing if your home’s value has changed, you have likely encountered a real estate appraiser.

A real estate appraiser determines the value of a property by inspecting it and comparing it to similar properties. The property’s value, as determined by the real estate appraiser, is called an appraisal. Appraisals are used for tax assessments and determining mortgage loans, among other things.

Becoming a real estate appraiser can be a fulfilling and specialized career, but it requires meeting certain requirements and obtaining state-specific licenses and certifications. Here’s everything you need to know about the requirements and qualifications to become one.

Becoming a real estate appraiser can lead to an exciting, specialized career. There are general requirements for becoming a real estate appraiser, as well as varying state-specific requirements. You can choose between several paths to pursue a career as a real estate appraiser.

Owner and founder of HouseCashin, Marina Vaamonde, suggests appraisers make their own website and create videos or articles that debunk popular online myths about appraisals.

“Somewhat paradoxically, I think it comes down to using the internet to build — as much as I dislike the phrase — your personal brand,” Vaamonde told BestColleges.

The Appraisal Qualifications Board (AQB) sets minimum requirements for education and experience for real estate appraisers. These professionals may also need to take a certification exam. For example, someone who hopes to become a real estate appraiser must complete at least 150 hours of education and 1,000 hours of experience over at least six months in order to obtain a Licensed Residential Real Property Appraiser license.

These are minimum requirements across the United States; however, each state can add additional requirements. These requirements will need to be met in order to apply for state licensing or certification.

The AQB requires appraisers to meet minimum education requirements. You must become an trainee appraiser in order to become a licensed property appraiser. Typically, a trainee is supervised by a certified appraiser.

Trainee appraisers must complete at least 75 educational hours. Future appraisers can meet this requirement by taking courses in basic appraisal principles and procedures, as well as completing a Uniform Standards of Professional Appraisal Practice (USPAP) course.

Once you have completed the trainee appraiser requirements, you will need to continue taking courses. The number of classes you must take varies based on the certification level you’re seeking. For instance, a licensed residential appraiser must complete 150 hours of qualifying education; certified residential appraisers need 200 educational hours; and certified general appraisers must earn 300 hours.

Several organizations offer appraisal courses and you do not need a college degree in order to become a real estate appraiser. Additional educational requirements vary depending on the state.

A supervisor appraiser should be certified in good standing. You should check with the state you wish to become certified in to see if it requires supervisors to hold a specific number of years of experience.

You can search the National Registry of Appraisers to find a supervisor appraiser in your area.

Once you have completed your necessary education and experience, you can apply to test for licensing and certification through your state. Your appraiser training courses cover all the necessary information for the tests.

You may be tested on subjects like appraisal math and valuation methods. Check online for practice tests and sample questions. The program you completed your educational hours with may also have study guides or test prep resources.

After passing your exam, you can apply to become a licensed residential appraiser.

A Licensed Residential Appraiser has the skills to evaluate non-complex residential properties of 1-4 units valued at under $1 million and complex 1-4 unit residences valued at under $250,000. This role, however, does not cover the assessment of subdivisions. Their area of expertise includes valuing properties such as single-family homes, duplexes, triplexes, and single-family homes with additional dwelling units or garage apartments.

Market swings can impact an appraiser’s job. “When the market is on the upswing and rates are low, many owners are looking to refinance their homes, so the success of their deal depends on a high appraisal,” Vaamonde said. “When the market is low, this pressure is eased a little as sellers are more willing to negotiate on the sales price of a home.”

The amount of training and the length of time it takes to become a real estate appraiser is dependent upon which type of appraisal certification you are completing. The different appraiser options each have different education and experience requirements.

Home appraiser training is evolving due to recent changes that have introduced anti-bias training requirements in several states, and by incorporating bias and discrimination topics into ongoing education courses. For example, in Minnesota and New York, appraisers must now complete anti-bias training to be licensed. The Appraisal Foundation’s course now also covers bias and discrimination.

Training seems set to focus on tackling systemic biases and improving the appraisal process through modernization and advanced technology utilization. For instance, the Federal Housing Finance Agency is mulling over proposals that could revolutionize the real estate appraisal process, such as implementing appraisal waivers, hybrid appraisals, and automated valuation models.

Also, starting January 1, 2024, the Appraisal Standards Board updated USPAP, significantly expanding its ETHICS RULE to encourage unbiased and nondiscriminatory practices. These updates clarify that appraisers should comply with anti-discriminatory laws and regulations and incorporate suggestions from industry regulators and stakeholders.