In this article, I will share everything I know about a real estate appraiser. Their salary, how much they make, how to become a real estate appraiser in your country, and do you need a license for it or not. You will know all of these after reading this article. So let’s begin.
Table of Contents
- What is a Real Estate Appraiser
- Real Estate Appraiser Definition – How does it work?
- How to Become a Real Estate Appraiser
- Salary for Real Estate Appraiser – How much?
- Real Estate Appraiser License – Do I need one?
What is a Real Estate Appraiser
An appraiser is a professional analyst who determines the value of a home or property and tries to increase it as high as possible.
That way, they help investors to make more money by selling their houses. Every investor has a real estate appraiser in his team, and they pay him a good salary, as that man can be the game changer for that investor.
If you don’t know how a house gets its price tag, then let me tell you, that is the work appraiser does. They analyze the whole house and the market with it and make an estimate by considering various factors in that house, and finally, they give you a price. For example, this is the right price for this house, about $90,000. Don’t buy the property more than that.
For example, when an investor buys an investment house. The seller will ask him, let’s say, $100,000. But that is not the right price at that moment. The investor will ask his appraiser to evaluate the house and estimate the current market value for the property.
With his help, they will know that these kinds of houses are selling for about $90,000 in this area. We should not pay more than $80,000 for this. If we do, we will face losses.
If you are a home buyer and want the right price for the house you are about to purchase, you will go to an appraiser. Because those sellers will always ask for more money. The appraiser will tell you the right price for that house. That way you will not spend any extra cash on it.
Real Estate Appraiser Definition – How does it work?
That is what a real estate appraiser does. Buy it is not easy to become an appraiser. It involves a lot of work. Work like analyzing:
- The condition of a property from outside
- The condition of each room from the inside
- And then the whole house overall
- All the amenities on the property, are they working properly?
- Any damaged things in the house,
- If there is, then how much will it cost you?
- Any violation of safety or health codes?
- The historical evidence of the house
There are many other things that an appraiser evaluates before giving a final price for the house. After collecting all the data he needs, they’ll compare it to similar homes in the area to make their estimate.
Normally, a financing organization hires an appraiser. It takes about an hour to complete the analysis after collecting all the data he needs. You should receive the report within a few weeks.
By the way, it takes time to produce the report. That can vary depending on the property size, the market, and other analytical factors. If the property is big, a multi-family building, it may take up to a month.
How to Become a Real Estate Appraiser
Becoming a real estate appraiser is similar to becoming a licensed real estate agent. You will take a course, and give an exam, then if you pass you will receive your appraiser license. You can follow these steps to become a real estate appraiser in your state.
The Appraisal Qualifications Board (AQB) has set some rules or minimum requirements criteria for becoming one. You can visit the official website for more information on this appraisal process.
There is a PDF file that you can download by vising the official website. That will give you some more information. Information like:
- General info: Know everything about the property appraising process.
- Examination: Give the exam as your states demand. It might not be required, but most states require you to give an exam.
- Qualification: There are no educational requirements. Anyone can apply. No college education is required.
- Course: The course time may vary from 15 to 30 hours, depending on the state’s rules and regulations.
- Training: You will work as a trainee under an experienced apprise to know how the work is done and then you can open your own firm with the license they will give you.
There is a lot of information in that PDF file that will really help you. Have a look at the PDF. It will help.
Salary for Real Estate Appraiser – How much?
The average pay for a real estate appraiser is about $61,000 a year. But it can go up to $75,000 if you are that good enough. Sometimes, it may go more than $100,000 if you have experience.
You as an appraiser, can work for large companies, a local firm, a bank, or work as an independent analyst. But everywhere, the payment or salary for real estate appraisers will vary depending on various factors. Factors like:
- The market condition
- Size of the property
- The location of that house
- The type of property (residential, commercial)
- Any repairs to the property
But in most cases, you can expect to earn about $60,000 a year. And that is not bad money.
Real Estate Appraiser License – Do I need one?
Yes, you need to have a real estate appraiser license from your state. It’s not an agent license. It’s different and much more complicated than any license in the real estate industry. Apply online and get your license in a few weeks if everything goes well.
Please note: The work of an appraiser is close to legal work. Don’t do anything foolish you will face huge problems. And this article is only for educational purposes only.
So that’s all you need to know to become a certified real estate appraiser and earn money. If you have questions, please free free to ask. We will be happy to answer. Thanks for reading, see you soon.