Sean Doran, University of ConnecticutMost people have a dream as a kid of what they want to do as a career when they grow older. People often dream of becoming firefighters, lawyers, doctors, stockbrokers or athletes. Many people envision themselves stepping into careers that are glamorous or lucrative. I have never met someone who has honestly said that when they grow up, they dream of becoming a real estate appraiser. It is often an industry that is under appreciated. However, real estate appraisers make up the foundation that the rest of the real estate world rests on.
I am a student at the University of Connecticut, majoring in Real Estate and Urban Economics. My journey into the world of real estate started only two years ago. I was taking a class about the different majors provided by UCONN’s business school and when Professor John Glascock gave a presentation about the real estate major, it was far and away the most intriguing. I have been headed toward a career in real estate ever since.
This past summer I started as an intern at Webster Bank under the supervision of Ted Rummel, MAI in the appraisal department. I was brought on to review appraisals and coordinate with appraisers that were doing work for the bank. This was something that I had no experience with and had to learn quickly. Rummel let me get right into reviewing appraisals and I was learning quickly by a trial and error process. I have learned a lot about the appraisal process from a third person perspective. Although all appraisers typically apply the cost, income, and sales comparison approaches, every property has to be treated differently. Some values of properties can only be accurately supported by one or two of these approaches. Rummel would let me review an appraisal and then check the review himself before it was approved. I am not an appraiser or even an appraiser trainee, but I do have the opportunity to see and review the work of accomplished appraisers every day I spend in the office.
According to the American Bankers Association there is currently a growing shortage of property appraisers in some areas. This is especially true in rural areas. “With many appraisers retiring and too few new appraisers entering the profession, the risk of a shortage would hinder credit in rural communities everywhere,” said ABA SVP Steve Apodaca, a former Agricultural banker.
The first step to becoming a certified real estate appraiser is to first become an appraiser trainee. Becoming an appraiser trainee is similar to becoming an apprentice to a certified appraiser. An appraiser trainee can only appraise properties their supervising appraiser has permission to appraise. Due to the limited education and experience of an appraiser trainee, they act under the guidance of the supervisory appraiser. In Connecticut, it takes several classes and a sponsorship to become just an appraiser trainee. You have to take a 30 hour Appraisal Principles class, a 30 hour Appraisal Procedures class, and a 15 hour class on the Uniform Standards of Professional Appraisal Practice (USPAP). Once you have completed these courses, you then have to obtain a sponsorship from a certified appraiser to become an appraisal trainee. However, there is no exam, experience, or college degree required to become just an appraisal trainee.
After becoming an appraiser trainee, you can become either a licensed or certified residential appraiser or you can become a certified general appraiser. According to the Appraisal Institute’s website, appraisalinstitute.org, the requirements for becoming a licensed or certified residential appraiser include the 75 hours of education that are required for an appraiser trainee plus an additional 75 hours of classes that are based on residential valuations. In order to become a certified general appraiser, you must take the 75 hours of classes required to become an appraiser trainee plus an additional 225 hours of classes taught about producing appraisals and the different types of valuation methods. These are the typical education requirements but they can vary slightly depending on the state someone is looking to get licensed in.
The Appraisal Institute provides a great service to anyone looking to pursue a career in appraisal. If you log onto the website ww.appraisalinstitute.org/education/ you can see all the opportunities and classes necessary to pursue the proper licenses, certifications and designations. The Appraisal Institute provides several forms of online education for these classes, as well as classroom programs. The first online program is offered through regular online classes you can complete at your own pace. The next is a live program, called Synchronous, where you can attend a virtual program in real time with an instructor. The last online program are short, live webinars on specific topics. The Appraisal Institute offers classroom education through the state chapters they have throughout the country. The Appraisal Institute develops programs for all educational needs in the appraisal industry. The Appraisal Institute also offers Member of Appraisal Institute (MAI) and Senior Residential Appraiser (SRA) designations, amongst other designations. You can earn these through the required education and experience outlined on the designation page of the Appraisal Institute’s website. Once designated, you will receive discounts on continuing education and other services provided by the Appraisal Institute. These designations are highly recognized and prestigious within the real estate world. An MAI or SRA designation shows that someone is experienced, respected and very well educated in real estate appraisal.
As an intern working under someone’s supervision, I can personally relate to the job of appraisal trainee. I review appraisal reports regularly and can tell the job of a real estate appraiser is not easy, but with hard work, it is definitely something that is achievable and can be learned. It takes hundreds of hours of education, thousands of hours of experience and rigorous examination to become certified as a real property appraiser. Perhaps this daunting training has played a part in the dwindling number of appraisers in the industry. Perhaps my peers have chosen to forego a career in appraisal for something more glamorous. Millennials are choosing to chase their dream jobs and young children and teens rarely dream of becoming an appraiser. Perhaps many don’t even know about the possibility of this career path.
I have a long career ahead of me and although I do not know where it will take me, I am glad I have had exposure to the world of real estate appraisal. Appraisal review has given me an attention to detail and analytical skills that can be helpful throughout the rest of my career. Rummel and Webster Bank gave me a great opportunity in their appraisal department to give me insight into the world of real estate appraisal as well as skills to take with me into the next chapter of my career.
Sean Doran is a student at the University of Connecticut and interns for Webster Bank, Hartford, Conn.