How to Become a Real Estate Appraiser

Real estate appraisers estimate the market value of commercial and residential properties. The requirements for how to become a real estate appraiser differ by state, but generally require you to complete prelicensing courses, acquire industry experience, and pass an exam. We’ve assembled this step-by-step guide, with state-specific information and documents, to help you learn how to become a real estate appraiser.

1. Get a Trainee License by Completing Coursework

To become a real estate appraiser, you must first become a real estate appraisal trainee. That means you need to complete and pass specific coursework that provides a solid foundation in real estate appraisal. The Appraiser Qualifications Board (AQB) sets national course requirements; however, some states require additional coursework. The appraisal industry is regulated differently in each state, but all require you to start your career as a trainee appraiser.

National

To become an appraisal trainee, the AQB requires you to complete a total of 75 credit hours of educational content from an approved provider. The required core curriculum coursework, which cannot be substituted by experience, is broken out as follows:

• Basic Appraisal Principles (30 hours): This course introduces aspiring appraisers to basic real property concepts, legal considerations, real estate finance, economic principles, and appraisal ethics.
• Basic Appraisal Procedures (30 hours): The procedures course teaches students about the actual valuation process, including the three traditional approaches to value—cost approach, sales comparison approach, and income approach—and how to collect data, describe the subject property, and communicate appraisal results.
• National Uniform Standards of Professional Appraisal Practice (USPAP) (15 hours): The USPAP 15-hour course sets forth industry requirements for ethical behavior and competent performance as described in the USPAP.

You don’t have to meet these hours all at once as training providers, like Hondros College, let you enroll in individual courses. However, bundled classes typically cost less. Although these classes are required, they are also a good idea as they teach you how to provide an objective estimate of the value of a property for tax, mortgage, insurance, and other purposes. Class formats, hours, and locations vary among providers, but you can expect to pay from $500 to $1,400 for an approved licensing course.

State

In addition to the national course requirements, some states require additional classroom time to become an appraiser trainee. These states still require the 15-hour USPAP trainee class as well as their state-specific requirements.

Here’s a quick breakdown of the prelicensing coursework hours required in each state:

Learn more about your state’s requirements by visiting the state licensing board website or by visiting an online training provider’s website. You can find out more about the best programs in our article on the best online real estate training providers.

2. Complete Appraiser Fieldwork Experience Hours

After becoming an appraiser trainee, you must start working under the strict mentorship of a licensed real estate appraiser. Before moving on to the next level of appraiser licensing, you must complete somewhere from 1,000 to 2,500 hours of supervised work within about six months. See the requirements for your state below:

Trainee appraisers can often find positions at residential appraisal firms and banks. These organizations generally have the greatest need for real estate appraisal services, although getting a position as a real estate appraisal trainee can be challenging. Places like the American Society of Appraisers job bank or Indeed can also be great resources for finding a position. Just be sure you work under a certified appraiser and keep track of the hours you work.

3. Pass Your State’s Appraiser Licensing Exam

Once you’ve fulfilled your state’s required hours of work experience, you can register for the real estate appraiser exam. The Licensed Residential exam consists of 110 questions and must be completed within a four-hour period. Depending on your state and location, your exam may be administered via one of these appraiser licensing exam providers:

• PSI
• Pearson VUE
• Applied Measurement Professionals

You’ll have to search each website to find the real estate appraiser exam schedule in your area. There will be an exam fee at the time of registration, which varies depending on your state. When it’s time for your exam, make sure you take two forms of government-issued identification.

Since the national first-time pass rate for the Licensed Residential exam is 57%, it’s unlikely that you’ll be able to pass your exam without serious effort and focus to learn the material. To maximize your ability to pass the exam the first time, use CompuCram’s Real Estate Appraisal Exam Prep course. You’ll get a money-back pass guarantee, six months of access, and interactive study tools that will give you full confidence on test day.

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4. Submit Your Appraiser License Application

After completing your work experience and passing your exam, you will submit a license application to your state’s board of real estate appraisers. State application requirements vary, but generally include background information, evidence of course completion, employment history, and an experience report.

Once your license is approved, you can begin working as a real estate appraiser with limitations on what types of property you can appraise. As a licensed residential appraiser, you can only appraise non-complex, one- to four-unit residential properties worth less than $1 million and complex, one- to four-unit residential properties worth less than $250,000.

For a review of your state’s requirements as well as the application documents needed to apply for a real estate appraiser license/certification, choose your state from the drop-down:

5. Find Work as a Licensed Real Estate Appraiser

To find work as a licensed real estate appraiser, you can search for job openings on websites like Indeed. In the first few years of your career, you’ll likely work for a bank or private appraisal company. However, according to the United States Bureau of Labor Statistics (BLS), employment for real estate appraisers is expected to continue growing over the next 10 years.

To appraise real estate accurately, you’ll need access to a multiple listing service (MLS) to research closed and current properties for sale. To gain access to an MLS, you can join the National Association of Realtors (NAR) for only $150 per year. Depending on your firm, this cost may be covered by your employer.

6. Upgrade Your License

After working as a licensed residential appraiser for a few years, you may want to upgrade your license. There are two types of real estate appraiser license upgrades: Certified Residential Appraiser and Certified General Appraiser.

Certified residential appraisers can appraise larger, more valuable residential properties, while certified general appraisers can appraise all types of real property. Consider upgrading your license if you want to expand your business to larger residential or commercial properties.

When upgrading your license, keep in mind that some states require appraiser trainees to complete final preparatory coursework or degree programs, such as an associate degree or college-level courses. Although this has not been a national requirement from the AQB since May 2018, some states have kept the requirement or ask for additional coursework. For example, New York requires applicants to complete 30 semester hours of relevant college-level education or hold an associate degree or higher.

Benefits of Becoming a Certified Residential Appraiser

The main benefit of upgrading your license to certified residential appraiser is that you can appraise properties valued at over $1 million. To do so, you’ll have to meet national and state requirements for appraisal coursework, experience, and college-level education. Once certified, you’ll be more marketable, because many banks prefer to work with certified residential appraisers than licensed residential appraisers.

To become a certified residential appraiser, meet the following additional requirements:

• Coursework: Certified residential appraisers are required to complete 200-plus hours of AQB-approved appraisal coursework, including previous coursework.
• Experience: Certified residential appraisers must have at least 1,500 hours of experience working as an appraiser or appraisal trainee in no less than 12 months.
• Education: Certified residential appraisers must have a bachelor’s degree, an associate degree, or complete 30 hours of college-level courses, or a combination thereof as summarized by The Appraisal Foundation. Contact your state’s agency to see how they are adopting new standards and what is required of you to meet them.

As a certified residential appraiser, you can appraise one- to four-unit residential buildings of any complexity or value. You may also appraise vacant or unimproved land that is utilized or best suited for one to four residential units. To appraise vacant or unimproved land suited for more than four residential units, you’ll need additional certifications.

Benefits of Becoming a Certified General Appraiser

Appraisal professionals can also become certified general appraisers. As a certified general appraiser, there are no limitations on the type of real property you can appraise. To attain this certification, the AQB requires a minimum of 300 hours of qualifying education and a bachelor’s degree or higher. Professionals must also complete a minimum of 3,000 hours of fieldwork in no fewer than 30 months, including at least 1,500 hours of nonresidential experience.

If you’re looking for a different career in the real estate industry, read how to become a real estate agent and learn about the best accredited real estate schools.