Probably one of the most well-known jobs in real estate is that of a real estate appraiser. Appraisers provide professional, objective opinions about the market value of a piece of real estate. There are many reasons to get an appraisal, including if a property owner wants to obtain a loan, change their property taxes, insure a property, settle an estate, establish value or, of course, sell their property. In order for an appraisal to be useful, it must, ultimately, “reflect a credible estimate of value”[1]. Appraisers are responsible for identifying the end-users of the appraisal, including who requested the appraisal, as well as the intended use and the purpose of the report. They also must include a full description of the property including location attributes, physical attributes, legal attributes and economic attributes as well as easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances and division of interest in the property. All of these items and many other small details are used to create as comprehensive a picture of the value of the property as possible.
By now, being an appraiser probably sounds like a pretty interesting job, but it is also probably clear that you need a keen eye for details. Appraisers must be certified in the state in which they wish to work and may work for corporations or individuals. Presently, there are many new restrictions on appraisers thanks to the real estate market crash, so make sure that if you decide to become involved in this business you understand exactly how, for whom and in what capacity you can legally work. Real estate appraisers can be salaried or work on contract or commission. They can make more than $100,000 a year and often work flexible but long hours.
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[1] http://www.appraisal.org/faq.htm
You might not know that seller financed mortgage notes can also be appraised.
This tactic lets the note holder know the true value of the note in todays dollars.
Great for estate planners, tax consultants
Thanks, Erwin
The author fails to mention that in order to become licensed, a prospective appraiser must serve an apprenticeship under a certified appraiser for about two years minimum. In today’s market it is unlikely anyone will take on a trainee; it is that bad. Don’t believe me? Pick up the phone and call any appraiser in your local phone book; ask if they are hiring. They’re not. No apprenticeship = dead-end. Oh, and no college degree? Even bigger dead-end with sprinkles on top.
The $100,000 a year income is an internet fallacy as well but is always fun to laugh at (although I didn’t think this was supposed to be a humor piece). For top-tier commercial appraisers, sure, but only after many years (four year degree required as well). Residential appraisal? Fugedaboutit.
There is a paradigm shift underway in the appraisal field; now is simply not a wise time to jump in. In fact, the good old days of appraisal may be gone forever; certainly the residential appraisal business is ding-dong-dying. Still don’t believe me? Pick up the phone and call any appraiser in your local phone book. Tell them you want to make $100,000 a year and are willing to work flexible but long hours. Come back here and let us know how you did.