What Challenges Do New Appraisers Face & How To Conquer Them
Choosing residential appraising as your profession is a fantastic way to show off your networking and communication skills, and it gives you the opportunity to make a great living with a flexible schedule. Even though these benefits are something to look forward to, there is a lot of due diligence, education, and growth you have to be prepared for, especially in the early stages of your business.
In this blog post we’ll break down some of the top obstacles facing new real estate appraisers and how to overcome them, the pros and cons of appraising, and insights from industry professionals.
There are education and experience requirements set by the Appraisal Qualifications Board (AQB) for anyone who wants to become a real estate appraiser in the United States. The four levels of appraiser qualifications (Trainee, Licensed Residential, Certified Residential, and Certified General) are unique in that each has its own requirements and guidelines set by the AQB. According to the Appraisal Institute (AI) website there is a “uniform state licensing/certification examination and a college degree requirement for the certified levels.” Here’s a snapshot of the key requirements for each tier:
As mentioned in an interview conducted by Appraisal Buzz with Gary Crabtree, “The greatest challenge [for appraisers] is making a “decent” living in today’s competitive market and the lack of trust that I’m shown by lenders and clients who demand written proof and documentation of everything that is included in my appraisals. It seems like I’m in the data gathering business rather than the valuation business.” Solutions like Anow provide appraisers with an easy-to-use interface that automatically stores information in a comprehensive workfile, so paper files and multiple spreadsheets are a thing of the past. An accurately time-stamped history of processes is available for each appraisal that is stored in Anow, and real-time updates can be sent directly to clients so they’re never left in the dark on an order. Sharing these types of details with clients and lenders can alleviate the “lack of trust” that Crabtree mentioned previously. Anow even provides a Public Records Import Tool that fills out report fields in seconds, reducing the amount of time one has to spend manually gathering data for each order.
New appraisers should “obtain the best valuation education possible and find a good mentor,” said Crabtree. The more preparation you put into your training and education, the more opportunities you’ll have later on down the road to take on priority orders and charge higher fees.
The type of appraisal license you carry is a huge factor when it comes to how much you’ll be able to charge per report, but it’s not the only factor to consider. Like many other professions in the real estate industry, becoming a high-earning appraiser comes with years of experience and building your reputation. This is important to keep in mind when deciding if appraising is the right career choice for you; success doesn’t happen overnight.
Image Source: https://faqs.mckissock.com/blog/appraisal/average-real-estate-appraiser-salary/
There is a concern about liability and compliance for appraisers. There’s no way around this one and years of experience doesn’t make a difference; you have to do your due diligence and double check every report to ensure the information you’ve provided is relevant and accurate. You can alleviate this concern by using Anow to manage your appraisal business, as it provides a bulletproof workfile and detailed history of your processes so you can be better prepared to tackle the need to remain compliant and avoid liability.
Anow stores every important order update and workfile task completed in an activity feed timeline, available on each individual order, so, if you’re ever questioned about your processes, you can reference your activity feed for exact information. Anow also offers a report pre-check tool that instantly identifies outstanding issues in your report so that you can ensure things are in top shape before being submitted to the client, which will also help reduce unnecessary revision requests.
Click here to see the McKissock 2020-2021 Appraisal Income Guide.
Being an appraiser gives you the freedom to make a good living without having to stick to a standard 9-5 office job. If you’re dedicated, take the proper time to train and educate yourself, and have proper resources (like Anow technology), you’ll be on your way to having a successful career as a property appraiser.
- Appraisal Buzz – https://www.appraisalbuzz.com/challenges-changes-real-estate-appraiser/
- McKissock – https://faqs.mckissock.com/blog/appraisal/average-real-estate-appraiser-salary/
- McKissock (Appraisal Income Guide) – https://info.mckissock.com/appraisal-income-guide
- Real Estate Career HQ – https://realestatecareerhq.com/appraisers-pros-and-cons/
- Appraisal Qualification Board – https://www.appraisalfoundation.org/imis/TAF/About_Us/TAF_Boards/TAF/TAF_Boards.aspx?hkey=40ed8f0a-c2de-482e-8bf3-e00eb0db4f93
- Appraisal Institute – https://www.appraisalinstitute.org/education/your-career/