Appraisers make it their business to know the current value of properties at any given time. Most of the time, appraisers are employed by either a lending institution, an appraisal management company or a government agency.

But did you know appraisers can work independently by offering freelance services? Let's look at what it takes to become a self-employed appraiser.

What Does an Appraiser Do?

An appraiser conducts a comprehensive inspection of properties or items. They analyze data to determine the factors that influence value.

Some appraisers may work solely on real estate, while others work with valuable items such as antiques or art pieces. A good appraiser is analytical and understands current market trends.

During the appraisal process, the job typically entails the following:

Using internal and external sources to establish market value

● On-site visits

● Interviewing clients

● Making reports

Appraisals are an essential part of real estate, car sales, and any field that requires evaluating the monetary value of an item or property.

Requirements

Per the mandates of federal legislation, all states and territories in the U.S are required to maintain an appraiser regulatory agency that is in charge of issuing licenses and certifications.

These agencies are also in charge of keeping an eye on appraiser-related activity.

If you are unlicensed and wish to gain experience, you may work under a fully licensed appraisal management company to assist with appraisals, but you can't sign the final document.

However, you must be licensed to reap the benefits of being a self-employed appraiser.

Appraiser License Types

Federal law requires appraisers to be licensed, and regulations vary depending on the state in which you reside.

Licenses can have different names depending on your home state, although there are four common licenses.

Appraiser trainee

An appraiser trainee can also hold the title of Registered Appraiser Assistant. This license is the first step towards getting the experience hours needed to take the test for licensed, certified, and general appraisal licenses.

This certification will allow you to work directly under the direction of a licensed appraiser. However, some states may not require a formal license for trainees.

You can visit your state's regulatory website to learn more about the rules and regulations that apply to you.

As a trainee, your supervisor may assign you the responsibility of researching property data and writing reports. The supervisory appraiser should be a mentor who works with you throughout the appraisal process, assisting, leading, and answering questions.

Since this is an entry-level position, the requirement for this license includes the following:

● Must be at least 18 years of age

● Submission of a completed application

● Educational courses may be required

Licensed residential appraiser

This credential is the first level of licensure, and you can appraise properties with less than $1,000,000 in value. You can work through a firm or become a self-employed, fee-based appraiser.

This license requires the following:

● Submission of a completed application

● Hours of experience (usually around 2,000-3,000 between 12-18 months)

● Completion of qualifying appraisal-specific education courses

● Passing a state licensure exam

Certified residential appraiser

The exact limitations of this appraisal credential will vary by state. However, in most cases, you'll be able to appraise all sorts of non-complex, one-to-four-family residential properties without respect to transaction value, as well as other types of real property with a transaction value of less than $250,000.

Requirements include:

● Submission of a completed application

● Hour of experience will vary, but you can expect to complete 2,500 hours within two years

● Education at the bachelor's or associate's level in a field relevant to business, accounting, finance, economics, or real estate

● The successful completion of at least 30 semester hours of a CLEP program may be acceptable in place of a degree

● Completion of qualifying appraisal-specific education courses

● Passing a state licensure exam

Certified general appraiser

This credential is the highest level in appraisal licensures. An appraiser with this license can appraise commercial and residential properties with no value limit.

Appraising a commercial property is significantly more sophisticated, time-consuming, and research-intensive.

The requirements include the following:

● Submission of a completed application

● Additional hours of non-residential real estate appraisal experience (you can expect to complete around 1,500 hours within 30 months)

● Hold a bachelor's degree or higher

● Completion of qualifying appraisal-specific education courses

● Passing a state licensure exam

Benefits of Offering Freelance Appraisal Services

If you hold a non-trainee formal license, you can work independently and offer fee-based freelance services.

Working independently comes with many advantages. Here are just a few of the perks you can enjoy.

You can set your own schedule

Freelance appraisers can decide when they’ll be available for appointments or other work-related activities.

This flexibility allows you to decide whether to work full-time or part-time to meet your obligations and lifestyle.

It also means that you can take time off when you need it, which can be especially nice if you have a family or other obligations outside of work.

You can choose your own clients

As long as you have an active license in good standing, there’s no limit on who will hire you as an appraiser.

You may get calls from real estate agents, insurance companies, home buyers, or sellers looking for help with an appraisal.

You get to decide which population and property types you want to work with.

Increased earning potential

When you work independently, you are in charge of your workload and how much you charge.

Therefore, your earning potential is limitless.

Main Takeaway

As a licensed appraiser, you may be surprised at the many different ways that you can make money from your appraisal service.

Some typical clients appraisers work for include working with mortgage companies, financial institutions, wholesalers, and real estate developers.

By opening up your appraisal business to these opportunities, you could potentially work more jobs than ever before.

If you're wondering how to start finding clients as an independent appraiser, begin by making a profile on a freelance platform such as Inspectionally.

Check out our website to register an account today.

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