Introduction to Real Estate Appraiser Salaries
In real estate, property buying and selling happens at a specific price, also known as market value in the industry.
Appraisals are required whenever the sale or purchase of real estate is finalized, and it is a process by which a fair, transparent, and objective evaluation of a property is made by a licensed professional, also known as a real estate appraiser.
The job of a real estate appraiser is to fix the market value of real estate. This is regardless of the nature of property, residential, commercial, or industrial. Hence, the appraiser’s role is critical, whatever might be the type of deal, size, or location. Whenever a property is listed for sale, it must be appraised by a licensed professional to determine if the selling price is justified or not.
Wondering what is the average appraiser salary in the United States? Generally, a real estate appraiser makes around $70K annually as an average base salary in Florida. This amount varies by state, and in some states like California and Missouri, it can go as high as $80K.
If a career as a real estate appraiser in Florida sounds exciting and lucrative to you, then it is important to fully understand the role of an appraiser in the real estate industry.
The Role of a Real Estate Appraiser
Irrespective of whether it is a personal or commercial property, every piece of real estate has some tangible value to it. Persons who are licensed and certified to evaluate the value of properties are real estate appraisers. They have the required knowledge to review a property and submit a written opinion to that effect.
What is the appraisal process followed by real estate appraisers? They typically look at the condition of the property, understand market trends, and in general, study all aspects that can affect the value.
Real estate appraisers are equipped to work with different types of real estate, including - residential property, commercial property, apartments, townships, and vacant lands. Generally, the primary duties and job responsibilities of a real estate appraiser entail the following:
- Conduct in-depth property walkthroughs covering a property’s exterior and interior to understand the condition of fixed and movable assets and fixtures.
- Determine the land size, location, layout, use of materials, amenities, and structural renovations built on or around the property.
- Evaluate a property using different valuation techniques, such as - cost approach, sales comparison, and income approach to determine a fair and accurate value of a property.
- Create reports after inspecting the property and conducting a detailed valuation analysis based on market trends. These reports are used by lenders, sellers, brokers, and buyers to make informed decisions.
- Ensure legal compliance with the state’s regulatory bodies while maintaining the ethical code of conduct according to industry guidelines and best practices.
- Interact with clients and industry partners including buyers, sellers, lenders, and brokers. Appraisers often provide their guidance to clients to ensure clear communication.
Therefore, a real estate appraiser does more than just evaluate the price of a property, they act as a bridge between sellers and buyers while enforcing accuracy and transparency in a real estate transaction.
Importance of Real Estate Appraisers in the Industry
As you can see, a real estate appraiser plays an integral role in every real estate deal while contributing to fair and transparent enforcement of the state and federal practices.
By using different valuation methods while examining various internal and external factors, real estate appraisers provide an unbiased view of a property. This is helpful for both sellers and buyers, especially in commercial real estate where stakes are higher.
Ensuring a fair, accurate, and transparent valuation of a property is important as it promotes ethical selling and buying in the market. Thus, the analysis and reporting conducted by a real estate appraiser can greatly influence the transaction in both positive and negative ways.
Factors Affecting Real Estate Appraiser Salaries
When it comes to the average appraiser’s salary, numerous factors affect the earning potential of real estate appraisers.
Firstly, education plays an important role in determining how much you can earn. As per the Appraisal Qualification Board (AQB), every applicant must meet the minimum state-level pre-license education requirements.
Secondly, getting a license will also influence your earning potential significantly. The education and training requirements vary based on your skill and experience level. Typically, it falls under three tiers:
- Trainee Appraiser: Complete a minimum of 75 hours of education
- Licensed Resident Real Estate Appraiser: Complete a minimum of 150 hours of education
- Certified Licensed Property Appraiser: Must complete within 12 months, at least 210 hours of education, and accumulate 1000 hours of work experience.
However, there are critical differences between the work of a licensed real estate appraiser and a certified appraiser that go much beyond mere experience and course hours.
As per norms set by the Florida Real Estate Commission, a licensed real estate appraiser can appraise to a value of $1m for non-complex residential property. There are no such limitations for a certified and licensed real estate appraiser.
Lastly, the salary of appraisers also depends on their industry specialization, i.e. whether they want to work in commercial, industrial, or private real estate.
Needless to say, in addition to having good hard skills, real estate appraisers can also improve their earning potential by working on their soft skills.
Since an appraiser has to liaise with realtors, brokers, agents, lawyers, attorneys, and customers, being good at people skills will take your career far and help expand your network.
How Much Do Appraisers Make: Understanding the Salary Range
National Average Salary for Real Estate Appraisers
Wondering how much do appraisers make in the United States?
According to the Bureau of Labor Statistics (BLS), the national median pay for state-certified real estate appraisers was between $60K to $74K per year.
It is, however, important to note that the salary of an appraiser varies largely due to many factors, including - their field of specialization, working hours, license type, location, and total work experience.
BLS reported that junior or beginner trainee appraiser’s average salary was around $15K per year, whereas more experienced and certified real estate appraisers can earn around $140K annually.
As per the industry standards, beginner trainee appraisers make around $50 to $150 for every appraisal. Post gathering work experience of at least 1000 hours and obtaining a real estate license, you can make around $30K to $80K.
At the highest level, which is, a certified general appraiser, you can earn around $70-$75K annually.
Regional Variations in Real Estate Appraiser Salaries
Beyond educational qualifications and license stature, the average appraiser’s salary also varies as per the different states.
For example, the Florida appraiser’s salary range on a mean average is around $65K annually and generally varies between $25K to $156K depending on the education, type of license, and work experience.
On the other hand, in San Diego, California, a real estate appraiser earns an average salary of $86k per year. The average annual salary for a real estate appraiser in Austin, TX is around $75K.
Top Paying Locations for Real Estate Appraisers
Among all the states in the country, some are more likely to pay higher annual salaries on average compared to others.
For example - New York, Illinois, and Georgia are states where the average annual real estate appraiser salary is around $70K. In California, real estate appraisers can earn as much as $80K on average every year.
On the other hand, states like Texas have varying salary ranges, depending on the city and its real estate market.
For example - in Austin, a real estate appraiser can earn around $75K per year on average, whereas in Dallas, the average annual salary range is around $60K.
You can compare these figures with the Florida appraiser’s salary of $75K per year as reported for Orlando.
How Much Does an Appraisal Cost in Florida: Fees and Pricing Factors
Factors That Determine Appraisal Costs in Florida
As per the National Association of Realtors, it costs around $500 on average to get a property appraised in Florida.
However, this amount can range between $300 to $900 and it generally depends on many factors, such as:
- Size of the property: Appraising larger properties costs more than smaller ones.
- Amount of comps: Properties with unusual structure or distinctive layout can take more time for appraisal, resulting in higher costs.
- Condition of the property: Highest costs of repairs and maintenance lead to higher costs, as it requires extra effort from the appraiser’s end.
- Seasonal conditions: An appraiser might seek higher charges based on the season or time of the year.
- Special features: Extra amenities such as a lake, swimming pool, gym, deck, pond, and other fixtures. need extra effort to be assessed, leading to higher appraisal costs.
Irrespective of the determining factors, the appraiser’s fee is regulated by the state government.
Typical Range of Appraisal Fees for Different Property Types in Florida
Wondering how much does an appraisal cost in Florida?
The answer generally depends on the type of property, amongst other factors such as the property location, condition, time of the year, and the experience of a real estate appraiser.
For an estimate, it costs between $300 to $400 to appraise an average size property in Florida. If you have a single-family home, the median average estimated cost to get your property appraised will be $500.
Here are some of the common home appraisal types you can find in Florida:
- Private appraisal: This is where an appraiser visits your property in person and evaluates it to give you an appraisal report.
- Drive-by appraisal: This is when a real estate appraiser simply visits your property and assesses it from the outside, without entering it.
- Secondary appraisal: This appraisal method is used to find data and information about the property online and make an informed evaluation on its basis.
- Hybrid appraisal: This method is a mix of the traditional or private appraisal as well as the secondary or online appraisal. One appraiser conducts in-person visits while the other appraiser relies on data to provide a combined evaluation.