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Is Being A Real Estate Appraiser A Smart Career Choice?
By Ciprian MorariuPublished: January 4, 2024
What is the role and responsibility of a real estate appraiser?
An appraiser evaluates and determines the fair market value of real estate like lands and buildings.
Why should you have an evaluator in real estate transactions?
The purpose of an evaluator is to provide an unbiased and objective opinion of a property’s market value. Factors considered are location, condition, size, and other comparable properties in that area.
Click here to learn the various purpose and importance of correct property valuation.
Real estate transactions: When buying or selling real estate it is important to know the fair market value of the property.
Estate planning: An appraiser decidesthe price of a property that is used for inheritance and estate tax purposes.
Mortgage lending: Value of property must not be less than the borrowed amount. This gives a sense of security to the lender in case the borrower defaults in paying back the loan.
Tax assessments: Determine the right amount of tax payable on the property through correct appraisal.
Insurance purposes: Insurance companies require valuers to determine the replacement cost of a property for fair insurance coverage.
How important are Appraisers in the real estate industry?
Here are some common roles and responsibilities of appraisers in the real estate industry.
An appraiserinspects a property to assess its value through various methods. Some of them include cost approach, income approach, and sales comparison approach. The value is also arrived at through data collected from local market conditions.
Next, a valuer ensures that all local, state, and federal laws have been complied with.
What skills and knowledge base are required of an appraiser to be successful?
The minimum educational qualification required to be an appraiser is a bachelor’s degree with added industry experience. Further, you must have completed a real estate course covering topics like valuation methods.
Next, get a license to be eligible to appraise property and assess its value. It is also necessary to remain updated with the latest trends and changes in the real estate industry.
Finally, work under the mentorship of a certified appraiser to pick up the ropes on this profession.
Among the must-have skills for an appraiser is the ability to analyze data for arriving at the fair market value of a property. You must also have a deep understanding of the local real estate markets and the factors that have a bearing on property values. This includes knowledge about real estate and the current zoning laws.
What are the various types of Appraisers in the real estate industry?
As there are different types of properties, there are various types of appraisers who specialize in them.
Let us discuss some of them in detail
1. Residential appraiser
Residential appraisers deal with residential properties such as single-family homes and multi-family houses.
2. Commercial appraiser
Here, you will be focusing on appraising commercial properties, which include offices, buildings, retail centers, industrial facilities, technoparks, shopping, arcades malls, etc. You will be evaluating properties for purposes of investment, financing, and acquisition.
3. Specialized appraisers
You can also specialize in praising agricultural and industrial properties.
a. An agricultural appraiser will evaluate farms, ranches, and rural land. You have to consider their soil quality, crop production, and agricultural infrastructure.
b. Set a value on warehouses, manufacturing, plants, and distribution centers for industrial appraisal.
What you should know about obtaining a Florida Appraiser License
Any person wishing to work as an appraiser in the state must first work towards getting a Florida appraiser license.
The authority that regulates the Florida appraiser license is the Florida Department of Business and Professional Regulation (DBPR).
Let us discuss below an overview of the levels of appraisal licensure in Florida.
Trainee appraiser - Perform appraisal services under the supervision of a certified appraiser.
Licensed residential real estate appraiser - Appraise residential units with a transaction value of less than $1 million.
Certified residential real estate appraiser- Appraise 1-4 residential units without any cap on their value or complexity.
Certified general real estate appraiser- At this level, you can appraise all types of real estate property.
To give you a brief overview of the general requirements for less insured. It includes
Completing the specified education hours as required by the state regulatory bodies.
You hold some years of experience in the field as required
You need to pass the examination of a real estate appraiser for the desired licensure level.
Submit fingerprints and take the required steps to undergo a criminal background check.
You must submit a completed application form along with the required documentation and fees to the Florida DBPR
The purpose of becoming a licensed Appraiser in Florida
Here are some potential advantages that you will get:
Career opportunities – Real estate appraisers evaluate properties for financing, tax assessment, and legal matters. Therefore, it has various career opportunities in the industry.
Independence - You can work as an independent contractor or run your appraisal, businesses, and forms. You can have a proper work-life balance in this scenario.
Job stability - the demand for real estate appraisal remains consistent even during economic fluctuations. Therefore you can have a stable career in this field.
Professional development - the whole process of becoming a licensed appraisal in walls, education, training, and passing an examination. This continuous learning will contribute to your professional development and keep you updated on industry standards.
Earning potential - You earn substantial fees for your services which increases with experience.
What steps to follow to obtain a Florida Appraiser license?
You must meet the educational requirements for the chosen license level which is a specified amount of coursework.
Meet the required work experience under the supervision of a certified appraiser.
Pass the Florida State appraiser examination administered by the Florida, DBPR.
Complete and apply for the license attaching all documents related to education and experience. Pay the fees required for a particular type of license.
Now you must wait and review the approval of your application by the Florida DBPR.
The requirements to acquire a Florida appraiser license
Always verify the specific requirements and procedures stipulated by the Florida DPR, as licensing requirements are subject to change.
1. Educational qualifications to get a Florida appraiser license
Complete all education hours required for a Florida appraiser license based on the level of license required.
2. Experience requirements for a Florida appraiser license
Just like education, experience requirements for a Florida appraiser license depend on the preferred level too.
3. Exam requirements for a Florida appraiser license
4. Continuing education requirements for a Florida appraiser license
After you or licensed, you must keep yourself aware of the renewal requirements, including continuing education obligations. You must fulfill any continuing education requirement there is to maintain and renew your license for times to come.
As a real estate appraiser, your career will not depend on market conditions or prevailing real estate trends.