Definition
A licensed appraiser is an individual who is authorized to perform appraisals of real property. These appraisers have met specific state educational, experience, and examination requirements but typically have less experience or fewer qualifications than certified appraisers.
Licensed appraisers play an essential role in the real estate industry by providing an unbiased estimate of property value, which is crucial for various transactions including sales, mortgage lending, taxation, and insurance.
Examples
- Residential Property Appraisal: A licensed appraiser evaluates a single-family home to provide an estimate of its market value for a potential home buyer.
- Refinancing: When a homeowner wants to refinance their mortgage, a licensed appraiser may be called to assess the current value of the property.
- Property Tax Disputes: A property owner believes their property has been over-appraised for tax purposes, and a licensed appraiser is hired to provide a professional opinion that may aid in contesting the tax assessment.
Frequently Asked Questions (FAQs)
What education is required to become a licensed appraiser?
To become a licensed appraiser, individuals typically need to complete 150 hours of state-approved education and pass a state licensing exam.
How does a licensed appraiser differ from a certified appraiser?
Licensed appraisers usually have fewer educational and experience requirements compared to certified appraisers. Certified appraisers may also have to meet higher standards and additional educational benchmarks.
What types of properties can licensed appraisers appraise?
Licensed appraisers can appraise non-complex residential properties up to a specified value (commonly $1 million) and sometimes certain commercial properties depending on state regulations.
How do I verify if an appraiser is licensed?
Most states have an online database for checking the credentials and licensing status of real estate appraisers.
Is licensing consistent across all states?
No, licensing requirements can vary from state to state. Each state may have different rules regarding education, experience, and examination for appraisers.
- Certified Residential Appraiser: An appraiser who has met higher standards than a licensed appraiser and is certified to appraise more complex residential properties.
- Certified General Appraiser: The highest level of appraisal certification, allowing the individual to appraise any type of real property.
Online References
Suggested Books for Further Studies
- “The Appraisal of Real Estate” by Marcie O’Connor - This comprehensive book covers all essential topics about property valuation.
- “Real Estate Appraisal” by Sarah Sayce, Judy K. Fisher - A detailed guide to the principles and practices of real estate appraisal.
- “Mastering Real Estate Appraisal” by Darcy Ferguson and William Pivar - This book provides in-depth insights into appraisal standards and practices.
Fundamentals of Licensed Appraiser: Real Estate Appraisal Basics Quiz
### What is the entry-level requirement to become a licensed appraiser in most states?
- [x] 150 hours of state-approved education
- [ ] A bachelor’s degree in real estate
- [ ] 200 hours of fieldwork
- [ ] Passing only the state licensing exam
> **Explanation:** Most states require 150 hours of state-approved education as the foundation for becoming a licensed appraiser, coupled with other requirements such as examination.
### Which type of property can a licensed appraiser commonly appraise?
- [x] Non-complex residential properties
- [ ] Large industrial complexes
- [ ] High-value commercial properties
- [ ] Agricultural land
> **Explanation:** Licensed appraisers typically focus on non-complex residential properties and may face value limits imposed by state regulations.
### How does a licensed appraiser's qualifications compare to those of a certified residential appraiser?
- [ ] They are identical.
- [x] A licensed appraiser generally has fewer qualifications and less experience.
- [ ] A licensed appraiser has more qualifications.
- [ ] A licensed appraiser can only appraise commercial properties.
> **Explanation:** A licensed appraiser generally has fewer qualifications and satisfies less stringent requirements than a certified residential appraiser.
### What is a key factor in determining an appraiser's scope of work?
- [x] State regulations and licensing
- [ ] Federal laws
- [ ] Appraisal company policy
- [ ] Client request
> **Explanation:** State regulations and licensing play a crucial role in determining the types of properties and complexities an appraiser is authorized to evaluate.
### Who governs the education and qualification requirements for appraisers?
- [x] The Appraisal Qualifications Board (AQB)
- [ ] The National Association of Realtors (NAR)
- [ ] Local real estate boards
- [ ] Individual real estate brokerages
> **Explanation:** The Appraisal Qualifications Board (AQB) sets forth the standards for education and qualifications for appraisers across the United States.
### What key quality should a property appraisal report exhibit?
- [x] Unbiased and independent valuation
- [ ] Favorable valuation for the seller
- [ ] Subjective opinions of value
- [ ] Inclusion of client’s desired property value
> **Explanation:** An appraisal report should reflect an unbiased and independent valuation of the property regardless of stakeholder interests.
### Can a licensed appraiser appraise complex residential properties?
- [ ] Yes, without restrictions.
- [x] No, typically they are limited to non-complex properties.
- [ ] Yes, if accompanied by a certified appraiser.
- [ ] Only if approved by state regulators.
> **Explanation:** Licensed appraisers are generally restricted to appraising non-complex residential properties as stipulated by state regulations.
### What enhances the credibility of a property appraiser?
- [x] Meeting state-set criteria of education, exams, and experience.
- [ ] Having a long list of former clients.
- [ ] Length of time in the industry alone.
- [ ] Highest property valuation estimates.
> **Explanation:** An appraiser's credibility stems from their adherence to state-set educational, experiential and examination criteria.
### How often must licensed appraisers typically renew their licenses?
- [ ] Every 3 years
- [x] Every 2 years
- [ ] Annually
- [ ] Every 5 years
> **Explanation:** Appraiser licensing renewal periods can vary by state, but biennially (every 2 years) is a common time frame.
### What is the standard process if a property owner disputes the appraisal value?
- [x] Request a review or additional appraisal.
- [ ] Approach a different state’s regulatory body.
- [ ] Immediately accept the appraisal and finalize the transaction.
- [ ] Sue the appraiser.
> **Explanation:** Property owners can request a review or a new appraisal to address disputed values before taking any more extreme measures.
Thank you for exploring our comprehensive guide to licensed appraisers and engaging with our quiz. We hope this deep dive enhances your knowledge and readiness in the realm of real estate appraisal!
