Becoming a real estate appraiser can be one of the most rewarding, interesting, and highly paid career options in the real estate business. But as with all careers, there are pros –and what some people may consider cons –when working as an appraiser. Read on to learn about the biggest ones if you’re considering a career in home appraisal.
Summary
| Benefits of Being a Home Appraiser | Challenges of Being a Home Appraiser |
| Home appraiser salaries are competitive, stable, and rewarding | There’s pressure to get appraisal reports exactly “right.” |
| Typically, you’ll work for yourself. | It’s easy to be questioned in cases of unfavorable appraisals. |
| It’s a stable industry that’s growing. | There may be extra travel involved |
| You’ll do purposeful work that makes a difference. | You’ll often need years of education and experience to earn your appraiser license and upgrade your license. |
The Benefits of Being a Home Appraiser
From high salary ranges to making your own schedule and attractive job security—here are the best things about being a home appraiser.
Average Home Appraiser Salaries are High
Your annual salary as a professional appraiser depends on a few different factors, such as license level, location, and who you work for. In general, your average annual salary as an upper-level appraiser will be higher than the median wage of $58,260 per year for all workers in the U.S.
Here’s a breakdown of average annual salaries for each of the four appraiser license levels.
| Appraiser License Level | Annual Median Salary |
| Trainee Appraiser | $45,447 annually |
| Licensed Residential Appraiser | $57,301 annually |
| Certified Residential Appraiser | $78,127 annually |
| Certified General Appraiser | $107,751 annually |
Source: Salary.com.
As you can see, the higher your license level (and experience), the more you will make annually.
You’ll Likely Work for Yourself
Dream of being your own boss? Real estate appraisal may be for you!
As a licensed or certified appraiser, you can choose to work independently, join an appraisal firm, work for a lender, or find a government position. The majority of appraisers work for themselves. They set their own schedules, have control over their workloads, and act as their own bosses. If you’re a self-starter with an entrepreneurial spirit, you can’t beat working as an independent real estate appraiser.
Stable Industry, Excellent Job Security
Appraisers are key players in real estate transactions. They’re always needed to provide opinions of fair market value for all kinds of real estate properties. Mortgage lenders hire them to help them ensure loan amounts match the collateral. Homebuyers and sellers rely on them for help in making informed home purchase and selling decisions. For as long as real estate properties change hands, are refinanced, or even foreclosed upon—we will need home appraisers.
It’s Purposeful Work That Makes a Difference
Being a home appraiser is a worthy job that’s integral to the real estate industry. An appraiser’s opinion of fair value affects many components of real estate transactions, from loan approvals to values of nearby properties, and even entire neighborhood values. When mortgages are involved, home purchases depend on the (favorable) outcome of the appraisal. This responsibility is why the education and experience requirements to become an appraiser—both nationally and in your state—are stringent and lengthy.
There are valuation procedures to learn, Federal and state standards to uphold, and compliance rules to follow. Being an appraiser requires logic, an unbiased approach, integrity, and expert research skills. Do the job well and it can be deeply fulfilling.
Challenges of Being a Home Appraiser
From high-stakes pressure to unfair blame and busy schedules—here are some of the biggest challenges in being a real estate appraiser.
It Can Be a Demanding Job
At times, working as an appraiser can be demanding, as so many things hinge on the results of your appraisal report.
Both banks and borrowers want to avoid appraisal gaps (differences between the fair market value of a home and the approved amount of the loan). These gaps can often lead to problems during a real estate transaction.
In cases where the home’s value is less than the approved loan amount, buyers have a few options: they may choose to come up with money out-of-pocket, they might try to negotiate a reduced purchase price with the seller (no guarantee this will work), or the deal could be cancelled all together; none of these are ideal. On the flip side, sellers and investors often hope for higher appraised values of their properties, which would mean they might pay less than a property’s market value. Higher market values also mean higher listing prices and sellers getting top dollar for their properties.
As a real estate appraiser, you’ll need to train yourself to be immune to external pressures from all parties with interests in a transaction. Just stick to what you know and what you were trained to do—provide an accurate appraisal report.
You Might Be Challenged on a Bad Appraisal Report
Emotions run high in real estate. After all, owning a home is a personal goal for so many Americans. At times in your career as an appraiser, one party might believe you didn’t get the appraisal “right,” and you might find yourself fielding the blame. This can be mentally and emotionally draining, especially if you find yourself in a scenario where you must defend your report and your methods.
However, if you’ve done your work properly and as you were trained to do, you would know that defending your reports, methods, and research are all part of the job. You follow appraisal standards and procedures for a reason. You’ll also maintain heaps of documentation – both because you should keep great records and because you have to by law—according to the Uniform Standards of Professional Appraisal Practice (USPAP).
You might get blamed for an unfavorable appraisal. Someone might even contest your appraisal (yes, there’s an official process for this). But you can provide your documentation, reasoning, and research to back up your opinion and stand by your methods. It’s hard to argue with that.
You Might Have to Travel a Lot
If you’re looking for a desk job, appraisal might not be it. Appraisers are on-the-go. They visit homes and other types of properties, with tablets, clipboards, and measuring devices in tow. Most appraisers appraise homes within their regions, which may not all be centralized in one city. So, there could be a lot of mileage to cover in one day.
Once a home visit is done, you’ll be back at your computer researching comparable property values, examining real estate trends in that area, running value calculations, and writing up your report.
If you don’t mind traveling and welcome the opportunity to get away from your desk, working in appraisal might be a great fit for you. But if you crave a profession that keeps you closer to home or your office, you might want to consider something else.
Years of Education and Experience Needed for Licensure
Becoming a home appraiser isn’t as difficult as, say, becoming a doctor. But there’s a great deal of education and experience hours needed to qualify for a license level that allows you to work independently (i.e., Licensed Residential Appraiser and above).
Here’s a rundown of your education, experience, and exam requirements for each license level.
| Appraiser License Level | Qualifying Education Hours Required | Required Experience Hours Working under a Certified Appraiser | College Degree Requirement | Exam Requirement |
| Trainee Appraiser | 75 hours | None required | Not required | Not required |
| Licensed Residential Appraiser | 150 hours | 1,000 hours in no less than six months | Not required
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Must pass exam National Uniform Licensing Examination for Licensed Residential Appraisers |
| Certified Residential Appraiser | 200 hours | 1,500 hours in no less than 12 months | Must complete one of these options:
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Must pass National Uniform Licensing Examination for Certified Residential Appraisers
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| Certified General Appraiser | 300 hours | 3,000 hours in no less than 18 months and 1,500 hours must be in non-residential appraisal work | Must have bachelor’s degree or higher in any field and from any accredited college or university | Must pass National Uniform Licensing Examination for Certified General Appraisers
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Choosing to become an appraiser means committing to your education (in some cases, for a period of years), finding a mentor to work under to gain experience, and potentially, earning a college degree. Yet, with its lucrative salary ranges, balanced need for left- and right-brain skills, and sense of purpose—a career in appraisal can be well worth the effort.