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Real Estate Appraisers evaluate improved or unimproved real property (land, or whatever is growing on, built upon, or attached to land) to determine its value for purchase, sale, insurance, investment, mortgage, or loan purposes.

JOB DUTIES

Real Estate Appraisers may:

Interview persons familiar with the property

Inspect property for construction, condition, and functional design

Take measurements

Compute depreciation and replacement costs

Consider the location and trends or changes that could influence the future value of the property

Research public records of sales, leases, assessments, and other transactions, possibly using the Internet

Compile data and estimate the value of property, possibly using the Internet

Submit written reports to confirm the estimated value of property

Testify in court as to the value of a piece of real property

The equipment and materials used may include:

The use of computers in appraisal is expected to increase in the future. A recently-developed computer program for Real Estate Appraisers will quickly provide a statistically estimated sales price on the property to be appraised and a list of recent "comparables" (information on comparable property sold).

OCCUPATIONAL SPECIALTIES

191.267-010 REAL ESTATE APPRAISERS evaluate improved or unimproved real property (land, or whatever is growing on, built upon, or attached to land) to determine its value for purchase, sale, insurance, investment, mortgage, or loan purposes.

Real Estate Appraisers may specialize in one area, such as residential, commercial, or industrial property, because standards that are used to appraise property will often vary with the nature of the property and with the purpose of the appraisal. For example, factors in the appraisal of farm land include potential income, possible crops, the extent of cultivation, nearness to the market, and the character of the surrounding community. Other standards may apply in the appraisal of factory sites, housing sites, and mineral-bearing land.

Real Estate Appraisers use one or more of the standard evaluation approaches--market, income, and/or replacement cost--in computing the value of property.

In addition to learning about these specialties, you may also find it helpful to explore the following MOIScripts:

WORKING CONDITIONS AND REQUIREMENTS

Real Estate Appraisers may work alone or as members of a small team. Beginning Appraisers are closely supervised. Appraisers work in offices and in the field, with much time being spent inspecting property and researching public records. Offices are usually well lighted and air conditioned. They may encounter hazardous conditions in condemned buildings.

Appraisers normally work 40 hours per week. Some might have to work some evenings or weekends to write reports or to interview people. Appraisers do a great deal of traveling within an area to which they are assigned and may be required to provide their own cars.

Real Estate Appraisers may join one or more professional association. These may include: The Appraisal Institute, The Society of Real Estate Appraisers, or The American Society of Appraisers. Real Estate Appraisers who are members of associations must pay dues. Dues within the same association may vary.

Each association has its own membership and examination requirements. Some have various levels of membership based on experience. Because of the exacting requirements, senior membership in any of the associations is recognized as a mark of outstanding ability. The associations require members to follow a code of ethics which governs their conduct with clients, the public, and the association.

You Should Prefer:

• Doing technical work

• Working with things and objects

You Should Be Able To:

• Use logical step-by-step procedures in your work

• Evaluate information and make judgments and decisions

• Apply math in estimating the value of property

• Work accurately with details and facts

• Understand and use words well

• Adjust to various types of work

• Work well with others

• Make objective appraisals in spite of conflicting interests

Math Problem You Should Be Able to Solve:

If a house is worth $100,000 and it is expected to appreciate at a rate of 7% per year, what is the expected value after 10 years?

Reading Example You Should Be Able to Read and Comprehend:

Economists call the number of items sellers will offer for sale at different prices at a particular time and place supply.

Writing Example You Should Be Able to Produce:

You should be able to give a customer a written appraisal explaining the reasons for the value that you gave them.

Thinking Skill You Should Be Able to Demonstrate:

You should be able to look at a price of real estate and decide an accurate estimate of its worth.

In Michigan, Real Estate Appraisers must be licensed as a Real Estate Valuation Specialist, State Licensed Real Estate Appraiser, or State Certified Real Estate Appraiser by the Michigan Department of Consumer and Industry Services, Board of Real Estate Appraisers. The various license titles have different educational and experience requirements. Minimum requirements for licensure are: 2,000 hours of experience in appraising and real property obtained over not less than 2 years, proof of completion of not less than 40 hours of classroom courses related to developing and communicating appraisals of real property (with at least 15 hours covering the uniform standards of professional appraisal practice), and passing a written exam. Initial license fees are $200.

The Appraisal Institute awards professional designations to individuals who fulfill education, experience, and demonstration report requirements.

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EDUCATION AND PREPARATION OPPORTUNITIES

NOTE: A High School Diploma or Equivalent or a Certificate (program of up to one year of study beyond High School) or an Associate Degree (two years of study beyond High School) or a Bachelor's Degree (four years of study beyond High School) may qualify a person for this occupation.

The following education and preparation opportunities are helpful in preparing for occupations in the MOIScript:

***SCHOOL SUBJECTS***

0500 BUILDING TRADES , 0600 BUSINESS , 0700 CAREERS , 0900 COMMUNICATIONS , 1000 COMPUTERS , 1100 ECONOMICS , 1700 GOVERNMENT , 2200 MATH

***VOCATIONAL EDUCATION PROGRAMS***

There are no Vocational Education Programs related to this MOIScript

***POSTSECONDARY PROGRAMS***

151 REAL ESTATE

Programs in Real Estate provide opportunities to gain the knowledge and skills needed for employment in the real estate industry. Skills needed for careers in sales, property management, or government agencies may also be learned.

Courses vary from school to school but may include:

                Search for a College and/or Instructional Program

***APPRENTICESHIP OPPORTUNITIES***

There are no Apprenticeships related to this MOIScript

***MILITARY TRAINING PROGRAMS***

There are no Military Programs related to this MOIScript

E-Learning Courses and Programs   

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OPPORTUNITIES FOR EXPERIENCE AND METHODS OF ENTRY

Part-time work in real estate sales may prove helpful to persons who wish to become Appraisers. Postsecondary programs in real estate may offer co-op, internship, or other work experience opportunities. Some programs are offered by local real estate boards.

School-to-Work opportunities include:

informal apprenticeships

mentorships

job shadowing experiences

touring a local Real Estate Appraiser employer

internships

volunteer work with a Real Estate Appraiser employer

community service work with an agency

Methods of finding a job as a Real Estate Appraiser include applying directly to employers or civil service offices. Assistance may be obtained from school or college placement offices, local chapters of Real Estate Appraisers' organizations, Michigan Works! local offices, or newspaper want ads. In addition, you should access and search the Internet's on-line employment services sites such as:

Michigan Talent Bank

Michigan Jobs & Career Portal   

Classifieds Employment    

Yahoo! Careers   

MONSTER.COM  

JobOptions  

Michigan Works!   

Building Industry Exchange (  http://www.building.org )  

You should also enter an electronic resume on these on-line services.  

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EARNINGS AND ADVANCEMENT

Salaries vary according to the Appraiser's experience, education, ability, geographic location, and employer. Most Appraisers are paid on a salary basis. However, independent Appraisers work on a fee basis for individuals, corporations, lending agencies, and other clients.

The earnings of experienced Appraisers are comparable to the earnings of other professional workers such as accountants, architects, and lawyers. Professionally certified Appraisers may earn from around $40,000 to more than $100,000 a year.

Annual salaries (early 1999) of property Appraisers employed by the State of Michigan and city governments in Michigan were:

Property Appraisers, including assistants, who were employed by county governments in Michigan had annual salaries which ranged from about $14,706 to $46,046 in 1998. Senior Appraisers earned between $14,760 and $51,628 per year.

Depending on the employer, most Real Estate Appraisers receive paid vacations and holidays; sick leave; health, life, disability, and hospitalization insurance; a company car; and a pension. These benefits are usually paid for, at least in part, by the employer.

Opportunities for advancement are usually good. College graduates may start as trainees who work under close supervision. Some employers provide formal classes along with on-the-job training. In some instances, high school graduates who have several years of experience in the transfer or sale of real estate may be trained as Real Estate Appraisers. A possible career ladder may be: trainee, junior appraiser, Real Estate Appraiser, senior appraiser, own your own business. Those with college degrees may advance to general management positions with financial institutions. Advancement in government agencies is usually accomplished through competitive examinations. In addition, Real Estate Appraisers may gain prestige by being appointed to planning boards, zoning groups, city or county commissions, and other community organizations.

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EMPLOYMENT AND OUTLOOK

Nationally, about 48,400 Real Estate Appraisers were employed in 1996. Employment is expected to increase about as fast as the average for all occupations through the year 2006. As the population and economy grow, more residential and commercial buildings will be constructed. Employment growth in this field will stem primarily from increased demand for home purchases and rental units. Also, when interest rates drop, more older houses and buildings will change ownership. Both help increase the demand for additional Appraisers.

Computer technology has impacted the need for appraisers. For example, the length of time needed to do a residential appraisal has declined as access to electronic databases has increased, streamlining their work process. Furthermore, specialized computer software programs have allowed lending institutions to derive property values without as much input from appraisers.

There were approximately 4,120 licensed Real Estate Appraisers in Michigan in early 1999. Of this number, 1,760 held regular licenses, 760 held certified licenses and 1,600 held valuation licenses. They worked for banks, savings and loan associations, real estate firms, insurance companies, independent appraisal firms, and government agencies. Most worked in urban areas. About 23.5% of all Real Estate Appraisers are self-employed. The industry distribution for real estate appraisers looked like this:

Employment of Real Estate Appraisers in Michigan is expected to increase more slowly than the average for all occupations through the year 2005. An average of 40 annual openings per year is expected with 10 due to growth and 30 to replacement of those who retire, leave the labor force, or change jobs or occupations.

MICHIGAN'S EMPLOYMENT OUTLOOK TO 2005

SOURCES OF ADDITIONAL INFORMATION