Being a commercial real estate appraiser can be a challenging but rewarding career. The profession allows dedicated individuals the flexibility to set their own compensation goals, work as hard (or as little) as they choose and to learn all facets of the commercial real estate industry. To get started, one needs to become a designated trainee and find a mentor that will help them start earning experience hours toward their state license.
The first step is to enroll in an appraisal course. While this will not only help an individual gain insights and some initial training into the profession, it also signals to potential employers that you are serious about putting in the hard work necessary to learn the basics. The Appraisal Institute offers three entry level courses that are required to eventually obtain your trainee designation. Basic Appraisal Procedures (30 hours), Basic Appraisal Principles (30 hours) and USPAP (15 hours). Together, these courses provide a solid foundation for the profession and also count towards your state license requirements. Joining the Appraisal Institute will earn discounts towards class offerings and further cement your commitment to a prospective employer.
Beyond taking the classes, finding a mentor willing and able to guide you through the first couple of years can be an even bigger challenge. Some of the hurdles for a mentor to be aware of are the time and costs required to work towards the main goal, which is obtaining your state license. Larger firms typically have more defined apprentice programs and are often hiring at more regular intervals. Creating a profile on LinkedIn, attending local chapter meetings for the Appraisal Institute and calling around to local appraisal firms will most certainly land you an interview. Networking with local professionals will also help you long-term in your career development. Lenders, attorneys, accountants, developers, brokers, title companies, environmental surveyors and investors are all interconnected in the industry and it is never too early to establish yourself in this relatively small community.
Some of the requirements to getting hired will include not only an interest in the profession, but having demonstrated an ability to write effectively, a willingness to make phone calls for information, good internet research skills and competency with Word & Excel. Most employers are looking for college graduates that have a focus on writing, economics or business emphasis. Initial compensation for trainees is typically salary-based and will switch to a fee split once your mentor believes you have mastered the basics and are able to produce good quality work with less oversight.
While this process varies for everyone, plan on one to two years before you are ready. Both employers and appraisers alike prefer hourly or salary positions, so either is always an option. Some firms will prefer that you start as a research assistant, as every program is a little different. Be flexible and learn everything you can, keep taking classes and understand that it is a small industry that is always looking for well-trained individuals. If appraising doesn’t work out, you can reach out to your growing network to inquire about other opportunities as the skills you learn as a trainee will serve you well in appraisal review, county assessments, investing/asset management, and a variety of other positions you never realized were out there.
Good luck on your journey!