HELLO there!
So, you are thinking of jumping into the world of Real Estate Appraisals! Well, guess what? I’m here to guide you step-by-step through this exciting (and LONG) process ha!
Many, including myself back in the day, do not understand the difference of education that comes with being an Appraiser vs. being a Realtor. Becoming a Realtor, you typically take one course (could be online or in-person), then complete the state exam and you are ready to start your business! Depending on the course you take, whether it is a structured in person or hybrid class or a do-it-at-your-own-pace class, can change the timeline on how quick you complete your license. With appraisals, there are some differences…
To start, there are three types (four in some states) of Appraisers: Trainee, Licensed, Certified Residential and Certified General. You become more educated with each. Each designation takes time, money and more requirements to achieve. In this post, I will be focusing on being a Trainee; however, please click on the links if you are wanting more information on achieving a higher designation. Disclaimer: please check your State guidelines in regards to obtaining your license, as every state may have slightly different requirements.
Step 1: Do your Research
Before you jump in, let’s take a detour. Just like I did, consider working for a local appraisal firm or doing a job shadow for a day or week, etc. It’s like taking a sample before ordering the whole meal. This gives you a taste of property inspections, data analysis, and the world of real estate appraisals. It’s a way to dip your toes and see if it’s the right fit for you. The fact that your are reading this article means you are already doing your research and doing your homework so great job!!! I would HIGHLY recommend you talking to local Appraisers Every location and market area is different and the job can look a little different everywhere depending on the size of firm you work for. I started working as an hourly employee at a small, local appraisal office just as I was about to graduate with my Bachelors degree. This was where I learned the softwares, went on inspections with my mentor/boss, started to sketch out properties, etc. I only did this for a few months before deciding I wanted to further my interest and go ahead and get my trainee license. This was the plan when I was first hired, but I didn’t want to take on the commitment and money it took to get my license if I had no interest in the day-to-day life of the career I was pursuing.
Step 2: Start your Education
There are two primary companies that are used for education, be that Continuing Education (CE) and Qualifying Education (QE). For the purpose of this blog post, I will be referring to QE as you will be focusing on QE. CE only comes into play once your are licensed. I have used both McKissock and Appraisal Institute before and both are great. I did the majority of my education with Appraisal Institute, but it is ultimately personal preference. There are three courses that are required to be completed that total 75 Hours of Qualifying Education (some states also require a 1-hr Sexual Harassment course, along with a Trainee/Supervisory Course). The three main classes are: Basic Appraisal Principals, Basic Appraisal Procedures and the 15-hour National USPAP Course. There are packages that offer a discounted price when you buy them all at once, which I would recommend. The investment will be around $1,500 (give or take depending on the company and type of class whether it is in-person or online, etc). Please note: After every course, you are required to take a proctored exam and pass. So, don’t think you are just going to quickly run through every course and get the green light to start appraising! If only it were that easy HA! You will complete three proctored exams over the course of 3-6 months, depending on how long it takes and when you complete the courses. This can be strenuous if you are also working full-time while trying to complete this as well, but KEEP GOING!!!
Step 3: Find a Mentor
To be honest, you should be on the lookout for a trainer/mentor from day 1! Many people are under the impression that when you complete your courses, you are ready to go! Unfortunately that is not the case unlike becoming a Realtor. States require you to also have experience hours where you work directly below a Certified Residential or Certified General Appraiser for a certain amount of time- let’s say a year before you can upgrade your license. The difficulty in finding a mentor is that many people are not interested in having trainees as it takes a significant amount of time and also liability to bring on someone to train. Keep an open mind when talking to Appraisers about becoming a trainee. There is no set compensation plan, benefits, hours, etc. Everything will be dependent on who you talk to, so keep an open mind and I would personally get in touch will all local appraisal firms located within an hour from you to see if any of them are willing to sit down and talk to you. I would personally suggest taking the time to meet with them in person rather than asking them on the phone or an email as I find it more professional. I was fortunate enough to find my mentor very quickly and we came to a fee-split compensation where out of every appraisal fee, I got a minor percentage. I did not have set hours; however I was in the office the majority of the time when not out on inspections with my mentor. These are things you will have to discuss with your future mentor. Everyone is different and maybe you have to work around your other job or school schedule if you are still in college. Remember that fee splits are negotiable, but as a trainee, you have no leverage. You need them more than they need you most likely, so if at any point you were to negotiate that fee, I would wait until you are Certified where you have leverage and have shown your skills and built your reputation. Non-compete contracts are also common. Just think if you were going to train someone… why would you want to train your future competition? Signing one is your own persona choice. I would recommend, however, that before you sign anything, having a lawyer or another professional looking it over first.
Step 4: Items you will Need
While you are working on your classes and experience hours, there are certain items that you will either need or I would suggest. First being a HP-12C Financial Calculator. You will be using this in your classes, along with your day-today life as an Appraiser. It is not like in high school, where you were required to buy a certain fancy calculator but will never use it any other time in your life ha! Another item you will be using on a regular basis is a laser measurer to sketch properties- this one is pretty explanatory. I did not invest in a higher-end laser until further on. I would suggest a less expensive option that you can find HERE while in the trainee process. An app that I recommend is Expensify- you will most likely be a 1099 Employee, meaning you are a self contractor and have to pay taxes. I track all my expenses on this app since it makes it very seamless and I don’t have to keep my receipts. It’s free and very user-friendly. Consider tracking your mileage as well! My number #1 tip- hire an Accountant and a Financial Advisor. Most Appraisers do not have benefits, 401k match contributions or anything large companies offer, so it is important to start yourself off on the right path.
Congrats! You’ve just opened the door to becoming a Real Estate Appraiser Trainee.
Ready for more real estate magic? Feel free to look at my other posts about Real Estate Appraisals. Stay tuned for more informational content. When I was getting my license only in 2019, there was little information online and everyone I talked to had a different answer. My vision is to create more transparency within the real estate career field and to promote it because I grew up in a real estate family and I see the beauty in it. The appraisal side is a long and confusing process, but I promise it is worth it!
