Employment is expected to grow faster than average.
Appraisers and assessors of real estate estimate the value
of real property for a variety of purposes, such as to assess
property tax, to determine a sales price, or to determine
the amount of a mortgage that might be granted on a property.
They may be called on to determine the value of any type of
real estate, ranging from farmland to a major shopping center,
although they often specialize in appraising or assessing
only a certain type of real estate such as residential buildings
or commercial properties. Assessors determine the value of
all properties in a locality for property tax purposes whereas
appraisers appraise properties one at a time for a variety
of purposes, such as to determine what a good sale price would
be for a home or to settle an estate or aid in a divorce settlement.
Valuations of all types of real property are conducted using
similar methods, regardless of the type of property or who
employs the appraiser or assessor. Appraisers and assessors
work in localities they are familiar with so they have a knowledge
of any environmental or other concerns that may affect the
value of a property. They note any unique characteristics
of the property and of the surrounding area, such as a specific
architectural style of a building or a major highway located
next to the parcel. They also take into account additional
aspects of a property like the condition of the foundation
and roof of a building or any renovations that may have been
done. Additionally, they may take pictures to document a certain
room or feature, in addition to taking pictures of the exterior
of the building. After visiting the property, the appraiser
or assessor will determine the fair value of the property
by taking into consideration such things as comparable home
sales, lease records, location, previous appraisals, and income
potential. They will then put all of their research and observations
together in a detailed report, stating not only the value
of the parcel but the precise reasoning and methodology of
how they arrived at the estimate.
Appraisers have independent clients and focus solely
on valuing one property at a time. They primarily work on
a client-to-client basis, and make appraisals for a variety
of reasons. Real property appraisers often specialize by the
type of real estate they appraise, such as residential properties,
golf courses, or strip malls. In general, commercial appraisers
have the ability to appraise any real property but may generally
only appraise property used for commercial purposes, such
as stores or hotels. Residential appraisers focus on appraising
homes or other residences and only value those that house
1 to 4 families. Other appraisers have a general practice
and value any type of real property.
Assessors predominately work for local governments
and are responsible for valuing properties so a tax formula
can be used to assess property taxes. Unlike appraisers, assessors
value entire neighborhoods using mass appraisal techniques
to value all the homes in a local neighborhood at one time.
Although they do not usually focus on a single property they
may assess a single property if the property owner challenges
the assessment. They may use a computer-programmed automated
valuation model specifically developed for their assigned
jurisdictions. In most jurisdictions the entire community
must be revalued annually or every few years. Depending on
the size of the jurisdiction and the number of staff in an
assessor’s office, an appraisal firm, often called a revaluation
firm, may do much of the work of valuing the properties in
the jurisdiction. These results are then officially certified
by the assessor.
When properties are reassessed, assessors issue notices of
assessments and taxes that each property owner must pay. Assessors
must be current on tax assessment procedures and must be able
to defend their property assessments, either to the owner
directly or at a public hearing, as accurate, since assessors
are also responsible for dealing with tax payers who want
to contest their assigned property taxes. Assessors also keep
a database of every parcel in their jurisdiction labeling
the property owner, issued tax assessment, and size of the
property, as well as property maps of the jurisdiction that
detail the property distribution of the jurisdiction.
Appraisers and assessors write a detailed report of each
appraisal. Writing these reports has become faster and easier
through the use of laptop computers, allowing them to access
data and write at least some of the report on-site. Another
computer technology which has impacted this occupation are
electronic maps, made by assessor’s offices, of a given jurisdiction
and its respective property distribution. Appraisers and assessors
use these maps to obtain an accurate perspective on the property
and buildings surrounding a property. Digital cameras are
also commonly used to document the physical appearance of
a building or land at the time of appraisal, and the pictures
are also used in the documentation of the report.
Appraisers and assessors spend much of their time researching
and writing reports. However, with the advancement of computers
and other technologies, such as wireless Internet, time spent
in the office has decreased as research can now be done in
less time or on-site or at home. Records that once required
a visit to a courthouse or city hall can often be found online.
This has especially affected self-employed appraisers, often
called independent fee appraisers, who make their own office
hours, allowing them to spend much more time on-site doing
research and less time in their office. Time spent on-site
versus in the office also depends on the specialty. For example,
residential appraisers tend to spend less time on office work
than commercial appraisers, who could spend up to several
weeks for one site analyzing documents and writing reports.
Appraisers who work for private institutions generally spend
most of their time inside the office, making on-site visits
when necessary.
Independent fee appraisers tend to work more than a standard
40 hour work week, in addition to working evenings and weekends
writing reports. On-site visits usually occur during daylight
hours, and according to the client’s schedule. Assessors and
privately employed appraisers, on the other hand, usually
work a standard 40-hour work week. Occasionally they work
an evening or Saturday, to speak with a concerned tax payer,
for example.
Appraisers and assessors usually conduct on-site appraisal
work alone. Their office may consist of just themselves or
a small support staff.
| Training, Other Qualifications, and Advancement |
The requirements that must be met to become a fully qualified
appraiser or assessor are complex and vary for appraisers
and assessors, by State, and sometimes by the value or type
of property to be assessed or appraised. In general, both
appraisers and assessors must meet licensing and/or certification
requirements which include specific training requirements,
a period of work as a trainee, and passing one or more examination.
Therefore it is essential that prospective appraisers and
assessors check with their State governments to determine
the specific education and experience required in their State.
There also are additional certifications or association designations
that are helpful for advancement as well as continuing education
requirements.
Although there are currently no formal degree requirements
to become an appraiser or assessor, the majority of practicing
appraisers and assessors have at least a bachelor’s degree,
sometimes in a related field such as economics, finance, or
real estate. The specific training courses necessary, however,
are not commonly available as part of most bachelor’s programs
and must be taken separately, usually at community colleges
or through appraisal-related or assessor-related organizations.
A Federal law requires that any appraiser involved in a Federally-related
transaction with a loan amount of $250,000 or more must have
a State-issued license or certification. All States also are
required to conform to the licensing and certification requirements
established by The Appraisal Foundation, a Congressionally-approved
organization dedicated to this purpose. The Appraisal Foundation
requires that appraisers pass a Foundation-approved State
examination as well as meet education and experience requirements.
The education requirements include a course and examination
on the Uniform Standards of Professional Appraisal Practice
(USPAP) set forth by The Appraisal Foundation.
Although Federal standards do not require an appraisal license
for those appraisers valuing real property with loan amounts
of less than $250,000, many States require any practicing
appraiser to obtain a license or certification, regardless
of transaction value. In addition, many States have different,
more stringent requirements for licensure than The Appraisal
Foundation.
The qualifications necessary to become an assessor also vary
by State but often are similar to the requirements for becoming
an appraiser. In most States, the qualifications are established
by a State assessor board that sets education and experience
requirements that must be met to obtain a certificate to practice
as an assessor. A few States have no State-wide requirements;
in these States standards are set by each locality.
The State-issued appraiser licenses currently available are
the State Certified General Real Property Appraiser license,
which allows an appraiser to value any type of real property
regardless of value, and the State Certified Residential Real
Property Appraiser license, which allows an appraiser to value
any residential unit of 1 to 4 families regardless of value.
An additional license, which is recommended or used by many
States is the State Licensed Appraiser license, which permits
its holder to appraise commercial property up to $250,000
and 1 to 4 family residential units worth up to $1 million.
In most States, those working on their appraiser requirements
for licensure are classified as a “trainee.” Some of these
States have their own training programs while others use the
recommended program of the Appraisal Foundation. This program
requires 75 hours of specified appraisal education, 15 of
which must be on the USPAP, before applying for a trainee
position. The number of additional courses one must take while
a trainee depends on the State requirements for the license
they wish to obtain. For the State Licensed Appraiser license,
which is available or required in a majority of States, the
candidate must obtain 90 education hours, 15 of which must
be on the USPAP, and 2,000 hours of on-the-job training. For
the State Certified Residential Appraiser and State Certified
General Appraiser licenses, the required education hours are
much more rigorous. In addition, the candidate must pass an
examination. Commencing in 2008, individuals wishing to become
State certified appraisers will need to either possess a college
degree or complete a specified number of hours in certain
college-level courses.
States mandating assessor certification have requirements
similar to those for appraisers. Some States also have more
than one level of certification. All candidates must attend
State-approved schools and facilities and take basic appraisal
courses. Although appraisers value one property at a time
while an assessor values many, the methods and techniques
used are the same, so the main courses assessors take are
the same as those for appraisers. In addition, there is usually
a set level of experience hours that must be obtained and
all assessor candidates in these States must pass an examination.
In some States, assessors must abide by the USPAP standards
and are strongly encouraged to follow these standards in most
other States. For those States not requiring certificates,
the hiring assessor’s office will usually require the candidate
to also take basic appraisal courses, and at the end of their
on-the-job training the candidate often will have accrued
sufficient experience hours to meet the requirements for appraisal
licenses or certificates. Many assessors also possess a State
appraisal license.
Obtaining on-the-job training is an essential part of becoming
a fully qualified assessor or appraiser and is required for
obtaining a license or certification. Although in the past
many appraisers obtained this experience working in financial
institutions or real estate offices, a new trend for candidates
is to get their initial experience in the office of an independent
fee appraiser. Assessors tend to start out in an assessor’s
office that is willing to provide on-the-job training, although
smaller municipalities are unable to provide this experience.
An alternate source of experience for aspiring assessors is
through a revaluation firm.
For both appraisers and assessors, continuing education is
necessary to maintaining a license or certification. The minimum
continuing education requirement for appraisers, as set by
The Appraisal Foundation, is 14 hours per year. A State-approved
course also must be taken on the USPAP every two years. Some
States have further requirements. Continuing education can
be obtained in any State-approved school or facility, as well
as recognized seminars and conferences held by associations
or related organizations. Assessors must also fulfill a continuing
education requirement in most States, but the amount varies
by State.
Appraisers and assessors must possess good analytical skills,
mathematical skills, and the ability to pay attention to detail.
They also must work well with people and alone. Since they
will work with the public, politeness is a must, along with
the ability to listen and thoroughly answer any questions
about their work.
Many appraisers and assessors choose to become a designated
member of a regional or Nationally recognized appraisal or
assessor association. Designations are particularly useful
in States or types of practices where a license is not mandatory
or a certificate has not been established. Designations are
another way for an appraiser or assessor to establish themselves
in the profession, and are recognizable credentials to show
employers a higher level of education and experience. Obtaining
a designation often requires much more training and experience
than the minimum licensing requirements of The Appraisal Foundation,
and usually are awarded after 5 to 10 years of experience.
Many appraisers and assessors start with getting their license
or certificate and work their way up to a designation. Many
appraisal associations have a membership category specifically
for trainees, who then can receive full membership after licensure.
Since States differ greatly on the requirements to become
an assessor, licensure is not necessarily required for membership
or designations; however, the imposed designation qualifications
tend to be very stringent.
Advancement within the occupation comes with experience.
The higher the level of appraiser licensure, for example,
the higher the fees an independent fee appraiser may charge.
Staying in one particular region or focusing on one type of
appraising specialty will also help to establish one’s business,
reputation, and expertise. Assessors often have a career progression
within their office, starting as a trainee and eventually
ending up as a senior appraiser or supervisor.
In 2004, appraisers and assessors of real estate held about
102,000 jobs. Most appraisers and assessors work full-time.
Nearly 4 out of 10 are self-employed; virtually all are appraisers.
Employment is concentrated in areas with high levels of real
estate activity, such as major metropolitan areas. Assessors
are more uniformly spread throughout the country than appraisers
because every locality has at least one assessor.
About 1 out of 4 worked in local government; almost all were
assessors. Another 1 out of 4, mainly appraisers, worked for
real estate firms, while a relatively small number worked
for financial institutions, such as banks and credit unions.
Most independent fee appraisers’ offices are relatively small,
consisting of either just themselves or a small staff. However,
private institutions such as banks and mortgage broker offices
may employ several appraisers in one office. The size of the
office employing assessors depends on the size of the local
government; in some States assessments are by counties whereas
in other States assessments are made by municipalities or
other local governments. Therefore a county assessor’s office
probably would employ more assessors than a small town, which
may only employ a single assessor.
Employment of appraisers and assessors of real estate is
expected to grow faster than the average for all occupations
over the 2004–14 period. Employment of appraisers will grow
with increases in the level of real estate activity and employment
of assessors will grow with the increase in the amount of
real property to be assessed. However, employment will be
held down to a certain extent by productivity increases brought
about by the increased use of computers and other technologies,
which make for faster valuations and allow appraisers to take
on more customers and each assessor to assess more properties.
In addition to growth openings, there should be numerous openings
due to the need to replace the many appraisers and assessors
who are expected to retire or decrease their working hours
over the projection period.
Employment opportunities should be best in areas with a active
real estate markets, such as the East and West coasts and
major cities and suburbs. Although opportunities for established
appraisers and assessors are expected to be good in these
areas, those wishing to enter the occupation may have difficulty
locating a training position because increasingly traditional
sources of training positions prefer not to take on new trainees.
Appraisers may find the best opportunities as independent
fee appraisers because the banks and other financial institutions
that, in the past, employed a significant number of appraisers
are increasingly contracting out to independent fee appraisers
to make loan appraisals on a case-by-case basis, decreasing
their need to have appraisers on staff. The increased use
of automated valuation models to conduct appraisals for loan
and mortgage purposes has also shifted work out of the financial
sector.
The cyclical nature of the real estate market will also have
a large effect on the future of appraisers, especially those
who appraise residential properties. In times of recession,
fewer people buy or sell real estate, causing a decrease in
the demand for appraisers. However, during a downturn in the
residential real estate market appraisers often are able to
switch specialties and appraise other types of properties.
Because assessors are needed in every local or State jurisdiction
to make assessments for property tax purposes regardless of
the state of the local economy, assessors are less affected
by fluctuations in the economy and real estate market than
appraisers.
Median annual earnings of appraisers and assessors of real
estate were $43,390 in May 2004. The middle 50 percent earned
between $30,820 and $60,110. The lowest 10 percent earned
less than $22,300 and the highest 10 percent earned more than
$81,240. Median annual earnings of those working for local
governments were $38,940. Median annual earnings of those
working for real estate firms were $46,330. Generally, those
working in urban and coastal regions earned more than those
working in rural locations.
Other occupations that involve the inspection of real estate
include construction and building inspectors, real estate
brokers and sales agents, and urban and regional planners.
Appraisers and assessors must also place a monetary value
on properties. Occupations also involved in valuing items
include claims adjusters, appraisers, examiners and investigators,
as well as cost estimators. See the Career
Database for more information on these careers.
For more information on licensure requirements, contact:
For more information on appraisers of real estate, contact:
- Appraisal Institute, 550 W. Van Buren St., Suite 1000,
Chicago, IL 60607. Internet: http://www.appraisalinstitute.org/
- National Association of Real Estate Appraisers, 1224 North
Nokomis NE., Alexandria, MN 56308. Internet: http:/ /www.iami.org/narea
- American Society of Appraisers, 555 Herndon Pkwy., Suite
125, Herndon, VA 20170. Internet: http://www.appraisers.org/
For more information on assessors of real estate, contact:
- International Association of Assessing Officers, 314 W
10th St., Kansas City, MO 64105. Internet: http://www.iaao.org/
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Source: Bureau of
Labor Statistics, U.S. Department of Labor, Occupational
Outlook Handbook, 2006-07 Edition
