How to Become an Appraiser in New York: A Detailed Guide
Introduction to Appraisals and Appraisers
Career as a Real Estate Appraiser
When you think of a career in real estate, it is likely that you would think of working as an agent or a broker.
However, if you are good with numbers and have an analytical bent of mind, then there is an exciting career path for you working as a real estate appraiser.
A real estate appraiser is a licensed professional who works in the residential and commercial real estate industry and performs the task of evaluating the worth of a property.
This valuation, called an appraisal, is then used for determining the selling or buying price of a property.
Real estate appraisers are sought-after professionals in both residential and commercial real estate sectors.
While the steps and methods for property appraisal remain largely the same, the scope of work might differ slightly based on the industry you are working in.
They are entrusted with the important aspect of providing an objective, unbiased, and accurate estimate of a land’s worth and a property’s market value.
Did you know that you can get the opportunity to make around $150-170K annually as a real estate appraiser in New York?
Imagine the satisfaction of earning a handsome, six-figure base pay while enjoying additional benefits and perks in your profession.
If this sounds like your professional dream come true, now could be a great time to prepare yourself for a rewarding and satisfying career.
To work as a real estate appraiser, you will have to obtain your New York appraiser’s license first.
This requirement is the same as how to get a New York real estate license where to practice in the state in the real estate field you must get a license first. You should complete the New York real estate license course and pass the licensing exam to get a real estate license in New York.
Getting your license is mandatory to be accredited by the New York Department of State and other state-specific governing bodies.
If you are ready to step into a lucrative career, then this article will help you understand all the steps on how to become an appraiser in New York.
This article will give you a detailed overview of the appraisal process, job role, and responsibilities. Plus, you will also learn about the state-specific qualifying requirements.
Role and Responsibilities of an Appraiser
By definition, a property appraisal is a third-party assessment and evaluation conducted by a qualified real estate professional to estimate the objective market value of a property.
An appraisal is conducted whenever there is a need to find out the accurate,
objective value of a commercial, or residential property.
A real estate appraiser is a licensed professional who can work for a bank, an appraisal company or independently and is hired by clients to provide a fair valuation of a property.
Let’s take a look at some of the key job duties and responsibilities of an appraiser.
- Determine the condition of a property based on its interiors and exteriors.
- Evaluate the various amenities present inside or outside the property.
- Gather complete information about a property’s size, scale, and type.
- Record and capture all the important information and observations of a property
- Appraise a property or land for the purpose of sale, purchase, mortgage, or insurance.
- Adhere to the state and federal standards of property appraisal and guidelines.
- Determine any potential warnings, issues, or concerns related to a property’s structural integrity and condition.
- Examine all the aspects that might affect a property or its value in the future based on its present and past condition
- Interview and discuss the client’s needs and expectations both on and off-site.
- Combine all the findings, research, and insights in a report and present it to their clients in a fair and transparent manner.
Overview of the Appraisal Process
An appraisal is a process through which a property’s buyer or seller is able to find the fair market value.
Any property, be it commercial or residential, is listed on the market for sale or purchase.
As soon as the listing goes live on any marketplace, the seller or the potential buyer contacts and appoints a real estate appraiser to perform an accurate appraisal of a home’s worth.
This is done to determine whether the selling price of a property is accurate and fair or not.
Once the appraising process is completed, the appraiser combines their findings, and prepares a detailed inspection and evaluation report for their client.
Typically, a property appraisal is conducted whenever there is a need for determining an objective assessment of a property’s value for the purpose of selling, buying, mortgage lending, taxation, legal issues, and lease negotiation.
If you are wondering, there are many steps in conducting a fair and objective assessment and appraisal of a property.
A real estate appraiser in New York must consider various factors in determining the fair value of a property, such as:
- Size of a property
- Floor plan of a property
- Location of a property
- Amenities and Fixtures of a property
Post analyzing and evaluating a property, it is the duty of the property appraiser to come up with an in-depth report and present key aspects defining a property’s valuation including:
- Description of a property, including its address, legal information, layout, size, type of property and any specific features.
- Neighborhoods of a property, including its local amenities, market analysis, economic conditions.
- Sales data of similar or comparable properties in the same neighborhood, including comparative analysis for recently sold or appraised properties.
Additionally, an appraisal analysis report can also cover additional details, such as - photos of the interior/exterior of a property, adjustments, evaluation of the land, and zoning information among other information and assumptions.
As evident, the appraisal process requires significant time, effort, and consideration of numerous factors.
Since an appraisal report is often considered for legal, financial, and ownership purposes, it is a high-stakes and extremely critical document.
In case you are wondering how much does an appraisal cost in New York then here’s what you need to consider - there is no single answer or amount for an appraisal.
Typically, a real estate appraisal for a standard single-family home in NY costs anywhere between $300 to $500.
Whereas, if you are seeking an appraiser for a multi-family home, prepare to spend around $600 to $1500 depending on your property among other factors.
Steps to Becoming an Appraiser in New York
Acquiring the necessary education
Completing qualifying education is one of the most important components of fulfilling the New York real estate appraiser requirements.
Working as a property appraiser requires an understanding of a range of topics, subjects, and courses - from property valuation methods to market research, you will have to gather the knowledge required for this profession.
Completing 75 hours of appraiser education is mandatory for all applicants who want to qualify for a property appraiser’s license in New York.
The pre-licensing coursework will serve as the foundation of your knowledge and skills. It will give you an understanding of the fundamentals of the real estate industry and the know-how of how appraisals are conducted.
As part of the 75 hours of pre-licensing education, you will be completing the following courses:
- Appraisal Principles (30 hours)
- Appraisal Procedures (30 hours)
- National Uniform Standards of Professional Appraisal Practice (15 hours)
Additionally, you are also required to complete a 4-hour appraiser trainee course if you are applying for the license for the first time.
Note that you are free to choose your preferred medium of course completion i.e. you can choose to join an in-person, real-world classroom or learn at your own pace by enrolling in an online course for appraiser education.
However, you must only choose an education provider accredited and approved by the Appraiser Qualifications Board (AQB) of the New York DOS (Department of State).
Once you are through with the pre-licensing education, you can move towards completing the next step of your licensing journey.
Gaining Practical Experience
To work as a licensed real estate appraiser in New York, it’s simply not enough to complete qualifying education.
According to the NY Department of State, you are required to complete a minimum of 1000 work hours as a trainee appraiser under the supervision of a certified experienced appraiser or a general appraiser in NY.
Gaining practical, real-world industry experience is a mandatory requirement for all applicants.
Passing the State Examination
Congratulations on completing New York appraiser trainee courses and gaining industry work experience.
You are now just one step away from starting an exciting career as a property appraiser.
Next, you must take and pass the National Uniform Licensing and Certification Exam to obtain your license.
The exam is four hours in duration and it consists of 125 questions in total. To pass the exam, you need to score at least 75 marks.
Each question carries 1 mark which means you must answer 75 questions correctly to pass the exam.
Note that you can schedule the exam day and date as per your convenience however, you must take the exam in the presence of an AQB (Appraiser Qualifications Board) approved vendor.
You will have to pay a one-time examination fee of $125 for the state licensing exam.
Understanding New York Real Estate Appraiser Requirements
Required Skills and Qualifications for Real Estate Appraisers
Getting your appraisal license in New York will get you started in the industry as a licensed appraiser; however, you need to invest in learning and upskilling to advance in your career.
Here are some of the essential qualities and must-have skills to set you up for success:
- Strong research and analytical abilities
- In-depth knowledge of mathematics, finance, and statistics
- Proven critical thinking and time management skills
- Strong organizational and interpersonal abilities
- Strong knowledge of real estate principles and regulations
- Familiarity with New York-specific rules, laws, and guidelines for appraisals
- Excellent writing and presentation skills
- Familiarity with popular industry software like MS Office, ARGUS
Note that many employers expect applicants to have a bachelor's degree in real estate, finance and related fields.
Enrolling in New York Appraiser Trainee Courses
Importance of Appraiser Trainee Courses
Working in a highly specialized and dynamic industry like real estate requires students to bring their best foot forward in terms of their knowledge, skills, and understanding of the industry.
This is where New York appraiser trainee courses can help you build a strong foundation for your career.
By enrolling in trainee courses, you can learn from expert teachers and instructors who can help you acquire the essential fundamentals as well as highly specific topics.
Since you will be learning under the guidance and supervision of a licensed real estate appraiser, you can easily develop the skills and aptitude needed for the profession.