Are you interested in becoming a real estate appraiser and curious about your salary potential and your career opportunities? Below, we answer some of our most frequently asked questions regarding a career in appraisal including, "what are the opportunities for real estate appraisers?" and "how much is the average salary for an appraiser?".
What Is the Job of a Real Estate Appraiser?
A real estate appraiser's responsibility is to establish the value of a property for a potential buyer(s). The appraiser relies on on-site inspection and off-site inspection to determine the value of a property.
Types of Employment for Appraisal Professionals
The independent fee appraiser provides appraisal services to the buying public and has a number of clients. Fee appraisers are typically one of the following:
Residential Real Estate Appraiser
A residential appraiser appraises single-family residences and two-to-four unit residential properties. Most residential real estate appraisers prepare form appraisals as compared to narrative appraisals. The residential appraiser does not possess the skill set to perform commercial property appraisals.
Commercial Property Appraiser
The commercial property appraiser appraises all types of real estate. Some even appraise single-family residences. Most commercial property appraisals are narrative reports as compared to form reports. The commercial property analysis typically includes more emphasis on financial benefits of property ownership and uses more complex mathematical concepts.
In-House (Staff) Appraising
There are job opportunities within financial institutions for real estate appraisers to prepare independent appraisal analysis and/or review appraisals on a full time basis as an employee of a financial institution. These positions are available with national, regional, and local lenders as well as with mortgage investors.
Review appraising opportunities exist for independent fee appraisers as well as in-house appraisers. You will frequently find in-house review appraisers at financial institutions or governmental agencies that review the work of fee appraisers. Additionally, these appraisers order and coordinate the appraisal process for the financial institution. This function is considered an important part of risk management for the financial institution or agency. There are opportunities for review appraisers with backgrounds in residential real estate appraisal as well as commercial appraisal.
Many of the employees of the ad valorem tax assessor's office have real estate appraisal training. The techniques are different (mass appraisal) than the fee appraiser but the concepts are the same.
Where an Appraisal Background Can Be Helpful
Mortgage brokers, real estate lenders, real estate brokers, and related positions represent opportunities for individuals with an appraisal background to bring specialized expertise to these positions. Additionally, financial analysts with appraisal training who work in these areas frequently have a competitive advantage in the job market.
What Is the Salary for a Real Estate Appraiser?
According to the Appraisal Institute, as of Dec. 31, 2018, the number of active real estate appraisers in the U.S. stood at 78,015. The number of appraisers decreased at an average rate of 3.0 percent per year over the past five years. A broader analysis suggests the rate of decrease could rise sharply over the next 5 to 10 years due to retirements, reduced numbers of new people entering the appraisal profession, economic factors, and greater use of data analysis technologies.
How Much Does an Entry-Level Appraiser Make?
During an appraiser's "apprentice" or training period, it is likely that an appraiser can make more as an in-house appraiser than as a fee appraiser. It is our experience that compensation for appraisal assistants is around $15 per hour, or 30%-35% of an appraisal fee. This can vary depending on individual related work experience. However, according to ZipRecruiter, the average Entry-Level appraiser salary is around $64,011 in February, 2020.
Average Salary $64,011
How Much Does a Residential Appraiser Make?
As a fee appraiser, many appraisers work on a "fee split" basis. This means the appraiser is compensated based on a percentage of the revenue that is generated for each appraisal. The fee split ranges from 30%-50% of the gross fee. Within a year, an entry level appraiser should be in a position to produce an average of at least one single-family residential appraisal per day. If the typical appraisal fee is between $300 and $350 and a fee split of 30%-50%, this would equal $90 to $175 per day or $21,600 to $42,000 per year (48 weeks per year x 5 days per week).
Experienced residential appraisers have been known to produce between two and three appraisals per day. This would result in 500 appraisals per year or more. Based on the same $300 to $350 fee for an appraisal and 50 percent fee split this would be $75,000 to $87,500 per year (500 appraisals per year x 50% fee split).
Average Salary $65K
How Much Does a Commercial Appraiser Make?
Commercial appraisers work on a fee split as well. This fee split ranges between 30%-50%, depending on the amount of support that is being provided by a senior appraiser or appraisal firm and the contribution that is made by the junior appraiser.
The amount of revenue that commercial appraisers generate varies widely. The variables include differing levels of
- Competition in various geographical
- Areas of specialization
- Marketing expertise
- Amount of energy that one is willing to commit to work
The potential exists for a commercial appraiser salary to be $150,000 of gross revenue per year or more. The potential for any given appraiser is largely dependent on their willingness to commit time, energy, and focus to their career.
Average Salary $101,422
The income potential for a real estate appraiser is appealing. Additionally, many find the flexible schedule, respect from other professionals, and relative ease of becoming a professional real estate appraiser to be motivating factors. Both education and experience are required to reach your full potential, and finding a mentor who is willing to teach you the appraisal profession is an important part of the process. The potential for a rewarding, professional career that is well compensated is dependent on each individual's desire, motivation and commitment.
Where Do I Get a Job After I Get a Real Estate Appraiser License?
Fee Appraiser Jobs
Contact fee appraisers in your community to offer assistance as a basis for learning the appraisal process. It may be challenging to secure an appraisal trainee position, however, a positive attitude and a willingness to offer the extra effort which having less experience requires, will result in an opportunity to learn more about appraising. Fee appraisers can be identified in the yellow pages, from the state licensing agency or professional appraisal organizations.
Contact financial institutions in your community to determine if they hire appraisers on staff and if they have openings. Developing a working relationship with the appropriate sources within these organizations can result in employment or setting the stage for securing work as a fee appraiser with the organization.
Contact assessor's offices to explore employment opportunities in their organization. Be sure to determine if the contact that has been made is for the entire organization or only one division.
Appraisal Trade Associations
In addition to providing a list of members, appraisal trade associations frequently have information on companies looking for appraisers as well. Trade associations can be identified in the yellow pages of major metropolitan areas and on the internet.
Appraisal Management Companies
Appraisal management companies appear to have an insatiable need for appraisers. Appraisal management companies coordinate the appraisal ordering and review function for a number of institutional clients. Appraisal management companies can be identified by searching on the internet using the key words "appraisal+management".
Is It a Good Career?
Reasons to Become a Real Estate Appraiser
As an appraiser, you have the ability to schedule your work time to fit your lifestyle.
As of Dec. 31, 2018, the number of active real estate appraisers in the U.S. stood at 78,015. The number of appraisers decreased at an average rate of 3.0 percent per year over the past five years. A broader analysis suggests the rate of decrease could rise sharply over the next 5 to 10 years due to retirements, reduced numbers of new people entering the appraisal profession, economic factors, and greater use of data analysis technologies.
Ease of Entry
There are minimal educational requirements to become an appraiser and most appraisers are compensated for training during their apprenticeship.
The appraisal industry has embraced technological changes at a much faster rate than the majority of the real estate community.
Variety of Work
Appraisers enjoy a wide variety of assignments within continually changing markets, and no two days are the same.
Spend Time Indoors and Outdoors
An appraiser has the opportunity to spend time out of the office in the sun and work indoors in the office when the weather is less appealing.
Set Your Own Hours
Based on one's life situation, it is possible to be an appraiser on a full or part time basis. You can work as many or as little hours as you would like.