The real estate appraisal profession deals with the property`s market value. Real estate transactions require qualified appraisers, who are able to advise the value of a property. Appraisers help real estate companies avoid fraud and risks in the process of selling and buying property. In order to provide professional services, real estate companies need qualified appraisers, who estimate the value of land and the buildings on that land before it is sold, mortgaged, insured, taxed, or developed. The real estate appraisal profession is challenging and rewarding. Therefore, individuals, who make a decision to become appraisers, must be ready to different difficulties. To become a professional appraiser, one should have in-depth knowledge in the professional field and have specific skills and abilities.
The Role of Appraisers
The research reports that real estate business cannot survive without professional appraisers. Their opinion in estimation the value and land is important for future successful transactions. Appraisers are supposed to be well aware of any type of property, including land, farms, houses, apartments, offices, industrial sites, and shopping centers among others. Any real estate company requires appraisers with in-depth professional knowledge and experience in order to avoid failures. An appraiser must know how to make research of appropriate market areas, analyze information, comparisons and professional judgment. These valuable abilities are required in the real estate appraisal profession (Betts, 2007). Real estate appraisers are prepared for negotiations between buyers and sellers, mortgage lending, tax assessments, business dissolutions, private property, and lease negotiations among others. It should be noted that real estate transactions occur rather infrequently, therefore, the value of property may vary according to the property`s market value (McKenzie et.al., 2010). Thus, appraisers have to understand and realize all changes that may occur in the market. For example, 2009 financial crisis led to the dramatic decline in property value. Real estate appraisers are prone to estimate the fair market value of property when it is sold, bought, improved, developed, taxed, insured, disputed or mortgaged according to the current economic conditions in the country. According to the available research, the Real Estate Appraisal industry is on the road to recovery after the mortgage crisis in 2009.
In a consumer driven market, real estate appraisers must understand that consumers want to make their own choice, thus, their task is to help customers to make their choices (Barris, 2008). The role of the real estate appraiser is to provide unbiased, impartial and objective opinion about the value of property. They provide professional assistance for clients, who own, sell, invest or lend money in the real estate business. A career of a real estate appraiser can be very challenging and rewarding one. Bribery and collusion may occur in the Real Estate Appraisal industry, what can lead to the hyperinflation of home prices, like it happened in 2009. Since then real estate appraisers began to experience certain problems. The research asserts that different government measures and improved economic conditions are observed in the USA today. This gives the hope that the situation will be changed into better in the nearest future.
Requirements and Choices
All American states require all individuals, who tend to work as real estate appraisers to be licensed or certified. Each state appraisal board administers an examination, which should be passed successfully. All candidates, who are planning to obtain a real estate appraisal certificate, must fulfill a rigorous education and adhere to specific standards and a code of professional ethics. It should be mentioned that there are four categories of real estate appraisers (Betts, 2007):
- Licensed Real Property Appraiser
- Appraiser Trainee
- Certified General Real Property Appraiser
- Certified Residential Real Property Appraiser
Being a professional with an appraisal background, one could be employed in the following fields:
- Fee Appraising, which comprises residential appraisers and commercial property appraisers.
- Commercial Property Appraiser, who offers in-house (staff) appraising, which is available with local, regional and national lenders and mortgage investors; review appraising, which is considered an important part of risk management for the financial institution or agency, and assessors with real estate appraisal training.
There are a number of reasons to start a real estate appraisal career. First of all, it gives a lot of benefits, such as an opportunity to schedule work in accordance with one`s life style. Continually changing market gives a wide variety of assignments that gives an appraiser to enjoy his work. Having a choice to work indoors or outdoors may be also the reason to choose the real estate appraisal profession. This profession is considered to be independent, organized, unbiased and trustworthy. Finally, it should be the right choice for those, who like to communicate with people.
In conclusion, it is worth mentioning that real estate appraisal profession is a challenging and demanding one. Those, who are well aware of its specifications, will have a chance to enjoy it in their future life. It is important for each person to make up his mind what to do in his or her life. If someone realizes that real estate appraisal profession may make his life happy, it could be his perfect choice. It is a good ability to schedule work according to one`s life, spend more time outdoors, enjoy beautiful landscapes and properties. Despite recent difficulties in the Real Estate Appraisal industry, the real estate appraisal profession may be a good source of income. Thus, there are more advantages than disadvantages to choose the real estate appraisal profession.