Real Estate Appraiser Trainee: 3 Things I Wish I Knew Before Starting
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- Опубліковано 27 тра 2024
- Are you interested in becoming a real estate appraiser trainee? In this video, I share three crucial things I wish I knew before starting my journey in this field. From the different types of appraisers to the extensive education required and the long drives to inspections, this video provides my personal insights for aspiring appraiser trainees. Whether you're just starting out or already on the path to becoming an appraiser, this video is a must-watch. Don't miss out!
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This is great insight David. Thanks!
@@MeetDaveG Happy to help!
I’m taking classes right now to become a trainee. It’s hard to find any videos like yours that actually talk about the job. Most of the other ones that I have found are mainly generic and really don’t give much information. Thanks. Keep it up. I enjoy watching them.
Update, how's it going.
There hasn’t been too much progress in the last few months other than trying to complete the last few classes for bachelor’s degree. Thanks for asking. I’ve got to refocus so I can be a trainee.
@@alabamaman1 ... cool, get it done. Be ready for the intrest rate drop refinance rush. Plus the tears of loss, reappraisal.
I charge $650 for a lending residential appraisal and I can complete 7 a week. I charge $3,000 for a basic lending commercial appraisal and I can complete 2 a week. These are however, the lowest end of the field. Personal property, business valuation, and litigation expertise (be willing to let lawyers interrogate you for 10 hours straight) are all way more specialized and pay way more. I specialize in government contracts and insurance/litigation work for real-estate and vehicles (cars, boats, RV, motorcycles, ect). When we are putting together a case the real estate appraisals are always the cheapest valuations.
Thank you for the sharing your typical fees! That’s a great datapoint to keep in mind. I’ve taken an elective on McKissock regarding litigation and being a witness - I don’t recall much of it but came out with a new profound respect for appraisers that work in the industry. I realize I didn’t go in-depth regarding commercial appraisal so I’ll try to cover more in the next video. Thank you for sharing your experience and expertise with everyone!
@davidtranpdx I guess to finish the list, vehicle appraisals are $350 each, and I can complete 4-5 per day. Business appraisals start at around $10,000 and are completed in 5-7 days. The government is all bid only, but it's a complicated process, so fees are high, and competition is always the same few companies. An example of why we do all this is a recent one we did: 2 dentists divorcing. 1 house, 2 cars, 1 boat, 1 RV, 2 dental offices, the business, and 3 depositions for the 3 appraisers that worked on it. Total of 8 business days, and the fee was $21,000.
How are you doing more than 2 a week and not botching the reports?
Residential appraisers get 400-750 depending. Generally you can write 2 reports per day. Some reports are so easy they take an hour. Generally they don't take more than 6-8 hours unless they are very complicated. It is a volume play. Residential appraising for lending isn't the best, however focusing on private work is best. (Pre-listing, attorneys/probate/divorce, etc.) Private is higher fees and less headaches. Benefit of residential appraising is it makes you a far better investor for residential properties. Generally the barrier of entry for commercial is so much $$$ certified general appraisers won't be investing in commercial buildings very often. Way more practical to invest in residential if you appraise residential.
Great points! Thank you for sharing!
How may reports would you generally do in a week?
@@dmaree25 In the past (not the recent times where things have slowed down) We had the volume to do 10 reports a week. most appraisers in our firm averaged 8 a week. If you're young you could easily do 10 a week possibly 15. say $400 per report on the low end.
@@Andrewzaro Curious where you are apprising from?
@@kwameamoako6270 New england, MA, CT, RI area
Thank you, this has helped because I have an interview about becoming a trainee for the city.
I really appreciate this video thank you for posting
Kudos David! Your content is like a masterclass in clarity and is seriously remarkable. It's like you've cracked the code of making the appraisal industry not only comprehensible but engaging. Seeing somebody be capable of breaking down concepts into something even a kindergartener could grasp is a true rarity in the industry and it demonstrates that you know your stuff! Training supervisors out there should be afraid, very afraid. Thank you!
Thank you! I appreciate it and glad you were able to get something out of the video.
Thtee things:
I've been a commercial appraiser for over 35 years, have taught the education courses for appraisers (including USPAP) for many years in front of literally thousands of appraisers and this is exactly the first time I ever heard ANYONE ever complain about the driving it takes to cover their assignments. That's akin to complaining about 1st world problems. The worker who has to stand on a factory floor in 100* conditions doing the same repetitive movement for 8 hours a day has something to complain about. In terms of working conditions, appraisers should be mindful about the point they have nothing to complain about. People outside the business already think appraisers get paid way too much for spending 20 minutes at their house. Or their office building.
Secondly, the appraisal business conditions in the states of Oregon and Washington are atypical of what the business conditions are like everywhere else in the nation. They always have been. Especially the fees. So be mindful about that - what you're seeing isn't what someone in Nevada or Missouri or Florida will be seeing.
Thirdly, depending on what types of clients and properties an appraiser ends up appraising in their day to day, I think it's a big mistake for trainees to focus on non-residential properties without ever learning the entirety of the 1-4 residential side. They're not the same thing but they also aren't entirely disconnected, either. Pulling 6 comps our of CoStar isn't appraising, it's vomiting.
Thanks for the input!
I'm not sure how you've structured your experience and education but for me I graduated with a BBA in finance, then became a trainee and did only residential work for just shy of two years. As I'm going up for my certified residential license currently I'm now taking my certified general coursework to transition into commercial work. It seems like you went straight into commercial assignments? In my state certified general is required to have 1500 hours in residential appraisal experience
@@xxnf99987 Thanks for sharing your experience! I joined a commercial valuation firm therefore I did not start with any experience in residential properties. Here are the experience requirements in Oregon:
"Three thousand (3,000) hours of experience obtained during no fewer than eighteen (18) months is required, with as least one thousand five hundred (1,500) hours in non-residential appraisal work. While the hours may be cumulative, the required number of months must accrue before an individual can be certified."
@@davidtranpdx hell yeah David I like your content keep it up buddy. I'm 3 years younger than you, the grind to to general certified is real. It's all I want. Good luck on your journey, you're on track to beat me. But David who will be MAI and CCIM first? 😂 best of luck nothing but love
Really knowledgeable stuff. Thank you so much
Great content and informative! Thanks 👍
Thank you so much for these vids! Solid and to the point
Glad it was helpful!
I love your video and the way you use your video and animation to explain your concepts.
Glad you like them!
Great vid look forward to more
Thank you for watching!
Wow! This got me even more interested. Here in Canada I'm sure it's much different but could you give me a breakdown of how I get started. Do I have to go to school or ? And can you start working as a trainee before getting your certification??
Glad you found it interesting! I’m not well versed in Canada but I’m sure the same process applies. You’ll need to get a trainee license here in the states and then find a supervisor appraiser to document your hours. Education can be done online. I’d recommend researching to see what the process is like in Canada.
Is the work worth the career David? Thinking about going into this field
Hi David, I am a commercial trainee as well and just happened across your videos. I’m about 4 months into the commercial side with some prior experience in residential and it is definitely way more complex for commercial. I’m curious about your training progression for the first year or so. What did your supervisor first have you doing? Have you written reports largely on your own?
Hi Owen! Thanks for sharing your experience. My supervisor first had me researching the subject property, build comparables, and write the market/economic analysis.
As for writing reports, it depends on the complexity. I can write straight forward as-is multifamily properties with no proposed renovation or construction. I didn’t start writing reports until about two years later into this career. That was mainly due to how busy we were and the office needed me mostly doing front-end tasks and get that to the senior appraiser as soon as possible.
That’s very close to what my experience has been so far as well. Very cool to see you’re putting these videos up and I’m looking forward to seeing more! Also, I happened to see some similar programs you were using. Pretty sure we work for the same company haha. NK
I work for a national appraisal company doing commercial appraisals. Although the fees are usually $3,000-4,000 range on average, I only net 17% of that fee as a trainee appraiser while doing 80-90% of the work. It takes about 30 hours to do each appraisal, so basically as a trainee, I make minimum wage. Def not worth it so far.
Thank you for sharing your experience. Income in this field is generally based on production volume. Right now we’re experiencing a slow-down which negatively impacts fees and amount of appraisals needed. Therefore what you’re experiencing is completely understandable. Another thing that can dictate an trainees income is the employer and the fee split. I’ve been in your position before where I’ve done most of the work but my income felt grossly underpaid. However that’s the unfair nature of this job. We need the appraiser to bring in work, and to give us credit for our hours. Because they have the upper hand, we’re at the mercy of the workload and fee split. I want to say it gets better after you’re licensed but I’m not at that point myself. Best of luck in your journey and hope it works out.
Bruh. You need to work for a different firm. Those fee splits sound like CBRE. Ha.
Finishing the last of my USPAP right now. Hoping to have enough work and get my hours in a year. Any signs of the market getting better?
I am in Southern Oregon, enjoy the videos man
Between March & April, we were busy with commercial work. Now our pipeline is getting slow again. Multifamily work is slow, but retail, office, and industrial work are steady. Overall it’s hard to say if the market is getting better. Capital markets still want to invest in northwest (Portland & Seattle) however the rising interest rates makes it challenging for deals to finalize. There are still some purchase and sale agreements that are given to us during appraisal assignments but getting recent 2023 comps can be a challenge with this slow down. I hope the market gets better as we approach Q3 but we’ll have to see.
Glad you’re enjoying the videos and best of luck on your journey!
Any recommendations for ways to work and get extra hours
@@traviswarnock8638 You could always write "demonstration of knowledge" reports. I'm not sure if that's the correct term but basically appraising properties that are not exactly for a client or fee, but mainly to show your understanding of appraisal principles and USPAP. That's what I'm currently doing for my application plus you can also use that to count for hours as well. Since you're in Oregon, I would reach out to Chad Koch from Oregon's ACLB. He's super friendly, and always open to answering all my questions. Hope that helps!
Ahhh, the 3 screen setup. My colleague had Netflix constantly running on the third…. And he was STILL quicker than me :(
Speed comes with time!
what parts of this process cannot be done online, or would otherwise require me to quite my current job or day more than a couple weeks off?
Hi David, thank you for this educational video. Do you know if you need a 4 year degree in CA?
According to the Bureau of Real Estate Affairs in California, only Certified General (Commercial) requires a bachelor’s degree from an accredited college or university.
Just imagine; back in the day, around when my Grandpa became an appraiser... you took a quick course, test, and then began working. You still needed E&O and all that but no college pre-requisites, coursework was not nearly as brutal... you did need to mentor but not for thousands of hours. Everything got MUCH more stringent after the S&L crisis and even more so after the '08 kerfuffle.
Still a lucrative career and fun if you enjoy detective work of sorts but wow, is it a different industry today.
*Them making sure you have college under your belt is stupid IMO as the course work you need, pertinent to the job you'll be doing, is already entailed with THE COURSE WORK THEY HAVE YOU TAKE.
Whatever, I'm not third generation appraiser (trainee) and don't consider stopping. I'll pick up side gigs along the way for sure but, an appraiser I was born and an appraiser I shall die.
-The subject property is located in a non-conforming district adjacent to Knotts Berry Farm, "I'm going there soon", and is in a stable market.-
Times have definitely changed! I wish the barrier to entry wasn’t as difficult as it is today but hopefully it will pay out in the long run. Thanks for watching!
Do i need to worry about my prior work experience to get an opportunity to be a trainee? I’ve noticed most people that do appraisals have worked like you have. Either at a bank or mortgage company
Not always, but it does give you a slight advantage. I've trained and worked with analysts who came from non-real estate-related backgrounds and was able to perform necessary appraisal duties and responsibilities well. If you're willing to learn and have a bit of patience, you'll be able to do the same.
Also as a residential appraiser who do you exactly work for ? Do you represent yourself or you work for someone? If so, who? The bank? Mortgage lenders??
Depends. It could be both and all that you mentioned. You could work independently or you can work for a company. The company could be independent appraisers, mortgage companies, county appraisers, etc.
How long was it from when you graduated to when you became a trainee? Did you jump straight into pre requisite courses or start in a different career first?
Depends on the state. For Oregon, you do not need a bachelors degree to be a State Licensed Appraiser. However, a bachelor degree is required for State Certified and Certified General.
I would recommend checking out your state’s ACLB and see what their requirements are. You can also check out McKissock since they aggregate most of the data for state requirements.
To answer your edited question. I became a trainee roughly one year after I graduated. I graduated in 2018 and joined a commercial appraisal firm in 2019. Prior to appraisal, I was working in a mortgage department for a credit union. I started the trainee courses once I was hired by an appraisal firm and they paid for my appraisal classes.
I'm currently in Norfolk VA and I want to get my real estate appraisal license. I've been researching different courses online but I'm not sure which ones are actually legit or worth the money. Any advice as to which ones are actually legit would be greatly appreciated.
I would recommend McKissock for getting your trainee license. Then for your main appraisal courses, I would recommend Appraisal Institute if it’s within your budget. Otherwise you could also take your main courses via McKissock as well. Best of luck!
@@davidtranpdxWhy do you recommend A.I. for the main appraisal courses?
@@tajmahal617 Sorry for the delayed response. Many appraisers including myself agree that course quality on Appraisal Institute is superior to other education providers i.e. McKissock. The course should provide you a better understanding of appraisal concept and better set you up for success on the field and prior to your exam. McKissock is great for basic trainee education, continued education, or electives.
Hello David, my name is Fatih. I have been working as a licensed real estate appraiser in Turkey for approximately 6 years. I have the highest level license from the licensing institution in Turkey, and I have business experience. I have mortgaged housing, commercial, etc. for banks. I prepare valuation reports of all properties for private individuals. I want to settle in America and do this profession there. Do you have knowledge about these processes? Or is there a person or site you can direct me to? How can we come from a different country and do this job in your country? I know a little bit about state requirements and education. Points I wonder: Can I receive education from a different country? If I cannot get it, can I apply for a visa for education? Which department and university is suitable for this education? Do I need to apply for a job after undergraduate equivalence and approximately 79 hours of training? Would it be beneficial for me to contact educational institutions? I wish you all the best and stay healthy.
I’m looking to purchase a computer that will fit my needs as an appraiser. I plan on being a residential appraiser and working for myself. Do you have any suggestions on some of the hardware specs that I will need?
I’ve seen appraisers use Window Surface Tablets and iPads when they are out in the field for photos and inspection. As for report writing, it depends on the programs and the software you’ll be using. Our company issued employees a mix of HP and ThinkPad. Currently I am using an HP Elitebook 840GB. It works fine and it was much faster than the previous company laptop which as a ThinkPad T470S.
Overall, I would recommend a laptop that has sufficient RAM to run programs, plenty of storage for your work files, and decent battery life when you’re on the road. Hope that helps!
@@davidtranpdx that helps a lot. Thanks for responding and the videos. I look forward to seeing more of them.
Do you think commercial appraising is a solid career and how is the outlook ? Do you enjoy it ?
It’s definitely tough right now with the rising interest late and the looming recession in the market. However this career is cyclical career and heavily production based and my income was great during the busy years. Overall I still enjoy it!
@@davidtranpdxdo you think it will eventually pick back up and will the long term outlook be worth to get your CG and go into Commercial ?
@@danielcalle8324 Eventually and I hope so!
For residential appraisers do you have to actually crawl in the crawl space or just peek your head in kind of thing.
Hi Colton,
I do mostly commercial work but I don’t believe either profession will need to get into a crawl space. However I’ve heard of appraisers actually going into crawl spaces so I’m not sure entirely. Often that’s the job of the property condition inspector or maybe even environmentalist. As a trainee for the last four years, I’ve never had to go into crawl spaces of any commercial buildings. Hope that helps!
Why are you still a trainee if it’s been 4 years?
Great question. Minimum requirements take a while to meet such as required courses, and minimum hours take a while to meet while working full-time. Second it also takes the state time to process your application and go through their audit process. All this can vary based on state and the level of certification desired. Hope that answers your question!
lmao at 12:00 minute mark