One day, a couple of years ago, I was in a real estate office to pick up a key for an appraisal inspection when the real estate girls asked some kind of stupid question, and my response was, “well, what are they afraid of, appraisers going crazy”? Everybody kind of giggled, but there was some truth to my off the cuff comment. I’m not sure what it means, though. I guess it kind of describes the belief out there that the entire mortgage meltdown, and subsequent recession was all because of appraisers going out of control with values and misrepresentations.

I guess it just describes the trials, tribulations and triumphs of the residential real estate appraiser in the current market. There sure are not many triumphs these days, though. Not with HVCC, AMCs, inexperienced appraisers low balling fees, underwriters, mortgage brokers, bankers still pressuring for values so they can keep their customers, real estate agents, oh, and did I mention underwriters? It is just a crazy time to be an appraiser. I got in this business for the potential freedom it offered…after sufficient training and experience, I could work from home! Be in business for myself! Have freedom and income all at the same time!

Well, a funny thing happened on the way to Utopia. Uncle Cuomo stepped in, created the HVCC, and now all of the relationships I’d built (or at least most), over the past 8 years were worthless. This is the residential real estate appraisal profession of today. It is no longer about relationships with clients, excellent service, honest opinions of value.

No, today it is about winning the lottery every day with your name coming up for the AMC to order an appraisal from you. And, by gawd, that form (otherwise knows as the appraisal report) better be filled out correctly, and we need it back in 48 hours, and we are going to pay you $250 while we collect $450 from the borrower. This is the world of Appraisal Management Companies and the typical appraisal request of today.

Residential real estate appraisers are no longer rewarded for doing a professional job, and supporting adjustments and painting an accurate and supported opinion of value. We are only rewarded for getting the report back to some cubicle in Dallas in 48 hours. It’s crazy, I tell you.

By: Ronnie Cartwright

About the Author:
Residential real estate appraising has gone from a profession with a solid foundation and excellent prospects of success, to one of extreme frustration for those of us on the front lines. Uptight underwriters, profit driven appraisal management companies, and new appraisers that don’t know any better are making it tough for the established, ethical appraiser to make a living. Keep up with the everyday trials and tribulations at Appraisers Gone Wild.

Are you considering becoming a Real Estate Appraiser? If so or are just thinking about it, you will need to do the following steps in order to get there.

Step 1: Check Your State’s Requirements

Each state has their own Appraisal Regulatory Board that administers and regulates the licensing and certification of appraisers. For the most part, the pre-requisites should be fairly uniform as they are set by the Appraisal Qualifications Board or AQB of the Appraisal Foundation.

As of January 1, 2008, to become a licensed residential appraiser you will need:

2,000 experience hours 90 education hours pass the exam

To become a Certified Residential Appraiser, you will need:

2,500 experience hours 120 education hours pass the exam

To become a Certified General Appraisal, you will need:

3,000 experience hours 180 education hours pass the exam
Step 2: Take the Required College Courses

The new requirements as of January 1, 2008, to become a Certified Residential Appraiser can be met with either an Associates Degree or higher in any field of study or you can take 21 hours in specific fields.

To become a Certified General Appraiser you will need a Bachelors Degree or higher in any field or 30 hours in predetermined fields of study including:

English Composition Principles of Economics (Micro or Macro) Finance Algebra, Geometry, or higher mathematics Statistics Various Computer Courses Business or Real Estate Law
Step 3: Take Required Appraisal Courses

On top of the required college coursework, you will also be required to complete a core curriculum in appraisal courses in the following modules:

Basic Appraisal Principles Basic Appraisal Procedures Residential Market Analysis Highest and Best Use National USPAP Course

Some places will teach you principles you will need to be successful in your career. Others will simply take your money and teach you how to pass the state test. Both are important, but learning the principles properly will be better for you in the long run. Keep this in mind when searching for your appraisal school.

Step 4: Find a Mentor

As state earlier, along with the education hours you are also required to have experience hours. You will have to find an appraiser who is in good standing to train under who will sign off on your work and serve as a mentor. Basically, you will have to treat this as a job search and eventually an interview. And, network with as many people as possible.

You have to bring something to the table that can help that appraiser with his or her business. Maybe you have a client in mind you can bring in to start doing work for. Maybe you are up-to-date on new technology or computer software that can make that appraiser’s job easier. Whatever it happens to be, you must be steadfast and diligent. Knock on enough doors and you will find your mentor. If you are apprehensive, consider taking personal growth and development classes like those offered online at Success University.

Step 5: Study Hard and Take the State Test

The state test is difficult and I heard through the grapevine they are going to make it harder. To get an idea and see some sample questions, go to psiexams.com . This is the company who administered the test in Louisiana and more than likely does it nationwide but don’t hold me to that. Now I think it is available online but I’m not familiar with the procedure as I took it at a certified testing facility. Either way it is difficulty – study hard.

Step 6: Apply for Your Appraisal License

Once you’ve taken the required coursework, completed your experience hours, and passed your state’s test, you will now be ready to apply for your appraisal license.

At this point you are probably asking yourself if all of this is worth it. That’s a question you will have to answer for yourself. The opportunity and the money is there for those who are persistent and willing to sacrifice to go for it. None of this is easy but it is all worth it in the long run.

Not to discourage you, but one thing nobody told me what that on top of all these requirements there is also a fee for everything! You will pay a fee to apply for your license, to take your exam, to have your experience hours reviewed and a fee to renew your license every two years.

As always, check with your state regulatory board on what forms and fees are required. Keep good records and especially keep up with your experience hours as you go.

Step 7: Continuing Education

In the appraisal profession we are required to take 30 hours of continuing education over a two year period. Our licenses are good for two years so license renewal basically coincides with continuing ed. You can opt to take 15 hours of continuing ed per year if you wish.

Personally, I took my continuing ed online at mckissock.com which is where my wife is taking hers as I type. I’ve also noticed that the Appraisal Institute is offering online classes as well.

You are required to take the 7 hours USPAP course every two years so that will be part of you 30 hour requirement. I think I paid $200 to renew my license after I paid $450 to take 30 hours of continuing ed.

Again, I’m not trying to discourage you but I do want you to be aware of the costs. You can make great money as an appraiser, but an old adage holds true: “it takes money to make money”.

Study hard, be aware of the fees and costs ahead of time, and prepare for your future.

By: Nathan Gurley

About the Author:
ABOUT THE AUTHOR:
Nathan BF Gurley is President of Gurley Residential Appraisal Services, LLC and author of the eBook “Work From Home as a Real Estate Appraiser“. You can get a free copy at his Success University blog http://nathangurley.com
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