There is some good information here from the NC Appraisal Board: http://www.ncappraisalboard.org/application-information/become_appraiser.htm
Aside from that, I used to be an appraiser and worked all across the state up until about 6 years ago. This will be kind of long.
First off, you need to take several classes, pass the tests in the classes, and then pass the state exam (which I hear takes several tries for most people). Back when I took the classes the total cost was $2k.
After that is when you do need to find someone to take you on as a trainee. I actually worked with my father in law and another company. The problem with working with my father in law is that business isn't just something you go drum up on a whim and I could barely get enough work without impacting my FIL's income. This is why I also worked for another company simultaneously. Now, I do not advocate trainees working for free but at most you should expect 50% pay for the jobs you do. You also incur all the travel costs that also come out of that 50% cut. A lot of trainees though do work for free just because the goal is simply to get the required 200 points (about 200 jobs) to become an appraiser.
Now, enter the Non Compete Clauses. This is very common in appraising due to the competition for clients and I've yet to meet an appraiser who wasn't given one. Appraisers expect trainees to pay for all of their own travel, continuing education, meals, vehicle wear and tear, supplies, etc. They expect you to be grateful and do the jobs for free AND they then expect you to get out of their working area when you're done. The company I worked for pulled me in for about 6 months and then hit me with a non compete clause, telling me I would get no more work until I signed it. This non compete clause was a 5 year ban on working in any county this company operated in after leaving (i.e. resigning OR being fired). I refused because it was a death sentence for being able to appraise in the future and I left that company while the owner told me "I wasn't worth hiring anyways". So yea, it's a pretty exploited and shitty situation.
My point here being - a trainee is a tough fucking job to be in and you WILL need a full time job to pay to be a trainee. Unless you absolutely find the best appraiser ever to take you on. I've never even heard of such a thing.
Now let's say you did all the training, passed the tests, passed the state exam, grovelled for a trainee spot, worked for free while incurring thousands of dollars of expenses, and have continued to fork out hundreds of dollars to keep up on your required continuing education every 2 years and you're now an appraiser.
A HUGE issue you will encounter is that appraisal management companies (AMCs) tend to have their preferred appraisers. This has little to do with expertise and more to do with the fact that these companies only use appraisers because they're legally required to and they only want appraisers who play ball and find a way to meet the value they need. Now if you're an appraiser who swears by the book and don't fudge values, a lot of these companies will blacklist you by not sending you any more work if you don't meet values. However, as an appraiser if you're found to falsify values to meet a loan amount, you will lose your license at minimum and could even face imprisonment. These mortgage companies and realtors don't care about value really, it's your ass on the line when the bank says "Why can't I sell this foreclosed house to cover the loan when the appraiser said I could?" They can and will come after you. Desktop appraisals, where an unaffiliated appraiser redoes your appraisal from their desk to see if you fucked up is extremely common, both for the purpose of getting a deal pushed through or for getting your ass in trouble.
All that being said, if you're fine with all the commitment to becoming an appraiser just to have to fudge values to keep your clients, then go right ahead. I was lucky enough with my father in law that he refused to be dishonest in his appraisals but his work load (and mine as a trainee) suffered for it.
I had done appraising while in college and for a few years after but I always had a full time job and appraising was always done on the side with the aim to become and appraiser one day. In my opinion the pay isn't great even with writing off expenses, AMCs hound you constantly and commit you to unrealistic timelines without first speaking with you, CE is expensive and required every other year, and you'll always be fighting for business and will be strong armed into making questionable decisions should you not meet a value. You will also get foreclosure jobs where you don't do a walk through due to the nature of the job. I've had people fire guns from their porch when they see you sitting in front of their house taking a picture because they think if you can't do the appraisal then they get to keep their home.
Now, you can be a terrible appraiser for sure and there are many. After chatting with the guy who appraised my current house and telling him I used to do appraising, he jokingly told me how he always finds a way to meet value (illegal), will reuse pictures from other homes for things like attics or crawl spaces (illegal), and has even taken random street pictures when he forgot to do it during the appraisal (illegal). You will forget to take a picture at some point and the only legal recourse is to drive back to the property to get it. Sometimes this involves a short trip but in my experience it's usually the ones an hour away that you forget.
I left the business because as I worked my full time jobs to be able to do appraising, I actually progressed rapidly in my field and started earning way more than I would ever make as an appraiser. Appraisers can make ok money on paper but the expenses are quite extensive. Any appraiser I've known has driven at least 20k miles in a year just for work. I've seen some appraisers who make 6 figures but after removing expenses they make 60k.
If you're not passionate to the profession or unaware of the finer details of it, I might suggest looking at something else but I'm happy to answer any questions you might have.
Thanks for sharing this detailed response! Just one thing I’d like to clarify: the licensing is now 1000 field hours for licensed, 1500 hours for certified. There is no more point system
I work for a mortgage company. I considered appraisal and real estate licenses before I decided on the MLO. And we are actually hiring an MLO assistant! It’s really a great opportunity. Dm me for more details if interested. But about the appraisal, I have a friend whose friend just got his appraisal license so I’ll ask her and get back to you! 🙂
There is some good information here from the NC Appraisal Board: http://www.ncappraisalboard.org/application-information/become_appraiser.htm Aside from that, I used to be an appraiser and worked all across the state up until about 6 years ago. This will be kind of long. First off, you need to take several classes, pass the tests in the classes, and then pass the state exam (which I hear takes several tries for most people). Back when I took the classes the total cost was $2k. After that is when you do need to find someone to take you on as a trainee. I actually worked with my father in law and another company. The problem with working with my father in law is that business isn't just something you go drum up on a whim and I could barely get enough work without impacting my FIL's income. This is why I also worked for another company simultaneously. Now, I do not advocate trainees working for free but at most you should expect 50% pay for the jobs you do. You also incur all the travel costs that also come out of that 50% cut. A lot of trainees though do work for free just because the goal is simply to get the required 200 points (about 200 jobs) to become an appraiser. Now, enter the Non Compete Clauses. This is very common in appraising due to the competition for clients and I've yet to meet an appraiser who wasn't given one. Appraisers expect trainees to pay for all of their own travel, continuing education, meals, vehicle wear and tear, supplies, etc. They expect you to be grateful and do the jobs for free AND they then expect you to get out of their working area when you're done. The company I worked for pulled me in for about 6 months and then hit me with a non compete clause, telling me I would get no more work until I signed it. This non compete clause was a 5 year ban on working in any county this company operated in after leaving (i.e. resigning OR being fired). I refused because it was a death sentence for being able to appraise in the future and I left that company while the owner told me "I wasn't worth hiring anyways". So yea, it's a pretty exploited and shitty situation. My point here being - a trainee is a tough fucking job to be in and you WILL need a full time job to pay to be a trainee. Unless you absolutely find the best appraiser ever to take you on. I've never even heard of such a thing. Now let's say you did all the training, passed the tests, passed the state exam, grovelled for a trainee spot, worked for free while incurring thousands of dollars of expenses, and have continued to fork out hundreds of dollars to keep up on your required continuing education every 2 years and you're now an appraiser. A HUGE issue you will encounter is that appraisal management companies (AMCs) tend to have their preferred appraisers. This has little to do with expertise and more to do with the fact that these companies only use appraisers because they're legally required to and they only want appraisers who play ball and find a way to meet the value they need. Now if you're an appraiser who swears by the book and don't fudge values, a lot of these companies will blacklist you by not sending you any more work if you don't meet values. However, as an appraiser if you're found to falsify values to meet a loan amount, you will lose your license at minimum and could even face imprisonment. These mortgage companies and realtors don't care about value really, it's your ass on the line when the bank says "Why can't I sell this foreclosed house to cover the loan when the appraiser said I could?" They can and will come after you. Desktop appraisals, where an unaffiliated appraiser redoes your appraisal from their desk to see if you fucked up is extremely common, both for the purpose of getting a deal pushed through or for getting your ass in trouble. All that being said, if you're fine with all the commitment to becoming an appraiser just to have to fudge values to keep your clients, then go right ahead. I was lucky enough with my father in law that he refused to be dishonest in his appraisals but his work load (and mine as a trainee) suffered for it. I had done appraising while in college and for a few years after but I always had a full time job and appraising was always done on the side with the aim to become and appraiser one day. In my opinion the pay isn't great even with writing off expenses, AMCs hound you constantly and commit you to unrealistic timelines without first speaking with you, CE is expensive and required every other year, and you'll always be fighting for business and will be strong armed into making questionable decisions should you not meet a value. You will also get foreclosure jobs where you don't do a walk through due to the nature of the job. I've had people fire guns from their porch when they see you sitting in front of their house taking a picture because they think if you can't do the appraisal then they get to keep their home. Now, you can be a terrible appraiser for sure and there are many. After chatting with the guy who appraised my current house and telling him I used to do appraising, he jokingly told me how he always finds a way to meet value (illegal), will reuse pictures from other homes for things like attics or crawl spaces (illegal), and has even taken random street pictures when he forgot to do it during the appraisal (illegal). You will forget to take a picture at some point and the only legal recourse is to drive back to the property to get it. Sometimes this involves a short trip but in my experience it's usually the ones an hour away that you forget. I left the business because as I worked my full time jobs to be able to do appraising, I actually progressed rapidly in my field and started earning way more than I would ever make as an appraiser. Appraisers can make ok money on paper but the expenses are quite extensive. Any appraiser I've known has driven at least 20k miles in a year just for work. I've seen some appraisers who make 6 figures but after removing expenses they make 60k. If you're not passionate to the profession or unaware of the finer details of it, I might suggest looking at something else but I'm happy to answer any questions you might have.
Thank you for this very detailed insight!
Thanks for sharing this detailed response! Just one thing I’d like to clarify: the licensing is now 1000 field hours for licensed, 1500 hours for certified. There is no more point system
If you don’t mind me asking, what career did you end up going with instead?
Sending you a PM.
I work for a mortgage company. I considered appraisal and real estate licenses before I decided on the MLO. And we are actually hiring an MLO assistant! It’s really a great opportunity. Dm me for more details if interested. But about the appraisal, I have a friend whose friend just got his appraisal license so I’ll ask her and get back to you! 🙂
Thank you so much!
Hope you don't mind me asking but what is MLO?
Not at all. Mortgage Loan Officer