Real estate appraisers determine the value of properties. Therefore, they need to know acceptable principles of appraisal and related information. They need to have practical experience, technical education and good judgment. With such strong qualifications, successful real estate appraisers are respected real estate specialists.
Real estate is appraised to determine many different types of values:
- assessed value for tax purposes
- investment value or present value for a potential investor
- “book” value for accounting purposes
- rental value for income projections
- insurable value
Appraisers gather and evaluate all the factors affecting the potential uses of property now and in the future. They need to analyze:
- the physical characteristics
- present and future earning power
- estimated cost for modernization or development.
By weighing this data and considering other variables and probable changes in the economy, they can estimate the current worth of the property.
If you have an analytical mind and like to interpret data as well as collect it, you might consider becoming a real estate appraiser. It is also valuable to have some knowledge of mathematics, accounting and economics.
Career opportunities for appraisers are found in:
- large real estate firms
- insurance companies
- banks and other lending agencies
- specialist appraisal firms
- government agencies
- tax assessment firms.
Appraisers can be retained as expert witnesses in court actions involving real estate values or the valuation of estates and in probate situations.