Money Magazene has listed appraising as the No. 8 career. The average salary in the magazene is $66,000 with a 10 year growth of 23% and 4,500 anual job opennings. The high rating must be for established appraisers who have gone through the initial stages of training, licensing and securing a client base. The field is relatively easy to prepare for from an educational standpoint with only 75 hours of AQB approved course work required to obtain a "Limited License" as an appraiser. The "limited Licnese" allows a person to start collecting the work experience hours towards either a State License (2,000 hours), Certified Residential (2,500 hours & 2 year degree) or Certified General License (3,000 hours with 1,500 commercial work and a 4 year degree).
As an appraiser and an instructor of appraisal classes I encourage people to pursue the field of appraising but I recommed finding a trainer first. Many students that take the appraisal classes are not aware of the field work requirements. Also, since January 1, 2008 the supervising appraiser must be a Certified Appraiser. Prior to 2008 a "State Licensed" apprsaiser could train and sign the log sheet that is sent to the state lincense board for approval of field work.
The training period to acquire the 2,000 hours is not a high paying time period, if paid at all. The appraiser training the new appraiser does not benefit from the training as much as the new appraiser does, in fact the trainer is slowed down when training. The certification in the Fannie Mae appraisal form states that the appraiser who signs the report actually looked at the subject property and the comparables. That means that a trainee is not allowed to do the appraisal and have the licensed appraiser sign it wihtout direct supervision. Some appraisers don't follow this rule as close as they should and consequently the new appraisers don't get the training they need.
Think of it this way; if you are a college student you don't expect your teachers to pay you for attending classes that will eventually lead to a high paying job. The cost of a college education is far more than the cost of appraisal classes and expenses required to function as an appraiser, like licensing, MLS participation, software etc. Not many college graduates find a profession that they can make $66,000 per year. A college degree takes at least four years and training to become an appraiser can take as little as two years.
I suggest to students taking the appraisal series for a career in appraising to consider taking the 40 hour class and get a real estate license. This is by no means a requirement but my thinking is that experience you gain by working with buyers and sellers is invaluable when it comes to analysing market transactions which are a result of the interplay between opposing parties. When you sell real estate you see first hand how buyers react to amenities, how financing impacts the negotiation process and a number of things you aren't going to get in a real estate appraisal class. Those who are having trouble finding a trainer can use the opportunity to make contacts. Some of the skils they use, like MLS searches, are also used in appraising.
Here are some other reasons to get a sales person license. The 40 hour class is all you need; not like appraising that requires 7 classes. The 40 hour class is very similar to the required appraisal principles class and will reinforce the concepts you will be tested on for either license. The lincense fees are much less for real estate agents than appraiser. One of the biggest expenses as an agent is MLS participation and when you are an appraiser you will likely join the local MLS. You can usually find a broker who doesn't reqire floor time or attending meetings, in fact the trainer you work for may have a broker license. Having the license allows you to sell a house to a friend or family member.
I have trained a number of appraisers in the past and I'm sure I will train many more. I look for individuals with good ethical standards and strong computer skills. A background in real estate is not necessary. Any prior work experience is good because you can relate what made you succesfull in that field to your new career. A good candidate wants to go as far as they can with licensing; in three years a person could have their broker and appraisal licenses. If you want more information on appraisal careers or think you would be a good candidate for an internship give me a call, or blog me.
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