A Licensed Appraiser is a professional who evaluates real estate properties to determine their market value. They have met certain state-specific educational and training requirements but typically lack the extensive experience or advanced certifications required of higher-level appraisers, such as Certified Residential Appraisers or Certified General Appraisers.
State-Specific Requirements
The requirements for becoming a Licensed Appraiser vary by state but generally include:
- Education: A combination of introductory coursework in appraisal methods, finance, and real estate law.
- Experience: A specified number of hours under the supervision of a Certified Appraiser.
- Examination: Passing a state-approved licensing exam.
Roles and Responsibilities
Licensed Appraisers often handle a variety of property types and are authorized to conduct appraisals for:
- Residential Properties: Single-family homes and small apartment buildings.
- Commercial Properties: Smaller commercial spaces, though often with restrictions in terms of value.
Comparisons: Certified Residential Appraiser vs. Certified General Appraiser
Certified Residential Appraiser
A Certified Residential Appraiser has more advanced qualifications and can appraise residential properties of any value, including complex residential properties. Their additional certification involves:
- More extensive education in residential appraisal theory.
- Greater experience, typically several thousand hours of work.
- Passing a more rigorous state examination.
Certified General Appraiser
A Certified General Appraiser holds the highest level of appraisal certification, allowing them to appraise any type of real estate property, regardless of its nature or value. Their qualifications include:
- Extensive education in both residential and commercial appraisal practices.
- More comprehensive experience requirements.
- Passing an even more stringent state examination.
Special Considerations
Continuing Education
Licensed Appraisers must meet ongoing continuing education requirements to maintain their license and stay abreast of developments in appraisal methods and real estate markets.
Ethical Standards
Adherence to ethical guidelines as set forth by professional appraisal organizations and state regulations is crucial to ensure accuracy, fairness, and integrity in property valuations.
Examples of Licensed Appraiser Work
- Residential Sales: Valuating a home for a conventional real estate sale.
- Mortgage Refinancing: Conducting appraisals for homeowners looking to refinance their mortgages.
- Estate Planning: Assisting in estate appraisals for probate purposes.
Related Terms
- Appraiser: An Appraiser is a general term for a professional certified to evaluate and determine the market value of properties.
- Real Estate Valuation: Real Estate Valuation involves processes and techniques used to estimate the market value of real properties.
- Appraisal Report: An Appraisal Report is a written statement by an appraiser documenting the valuation of a property.
FAQs
What is the primary difference between a Licensed Appraiser and a Certified Appraiser?
How often must a Licensed Appraiser renew their license?
Can a Licensed Appraiser work independently?
References
- The Appraisal Foundation. “Appraisal Qualifications Board (AQB).” Appraisal Foundation
- National Association of Realtors. “Appraisal Process.” NAR
Summary
A Licensed Appraiser plays an essential role in the real estate market, providing critical property valuations based on state-specific requirements. While they may lack the advanced certification of higher-level appraisers, they are crucial in fulfilling many residential real estate appraisal needs. Continuous education and stringent adherence to ethical guidelines ensure their competencies and reliability in the field.
