Generally, a Real Estate Appraiser is trained to inspect and prepare an impartial estimate of a property’s value. Banks and other types of lending institutions need the contractual services of appraisers when any type of property is bought, sold, or refinanced. A property may also need to be appraised if it is a subject of litigation, such as in Probate or Divorce Court.
There are three (3) customary methods that real estate appraisers use in order to establish a market value for buildings and properties. The first method is called the “Sales Comparison Approach.” This approach uses a certain amount of procedures to establish the value of a property by measuring up the values of similar properties that have recently sold.
The second method is the “Cost Approach”. This entails using a a certain amount of procedures
to estimate the cost – in today’s dollars- that it would cost to duplicate the structure in question.
Of course, depreciation would have to be subtracted from that value. And, the estimated value of the land the structure stood on would have to be added to arrive at a final value.
The third method that Real Estate Appraisers use is called the “Income Approach”. This also utilizes a certain amount of procedures to determine how much income a certain property could produce. Its estimated income is then converted to a property value.
If you’re considering a career as a Real Estate Appraiser, then you need to possess some basic qualifications. First, you must be able to work well, and to communicate verbally, with people. You must also be able to communicate effectively by using the written English language. You should have a keen eye for details, and a sincere desire to learn about buildings and properties.
In today’s business world, most every process is done on a computer. Therefore, you’ll also need a working knowledge of how to effectively use a computer.
The minimum qualifications to become an appraiser are controlled by the National Appraisal Standards Board. At this time, in order to become a Real Estate Appraiser in the state of Ohio, it is not necessary to hold a state license. However, appraisers in the state are usually licensed, registered, or certified. Appraisers fall under at least one of these categories:
1. State-Certified General Real Estate Appraiser- Certified to appraise all types of real estate.
2. State-Certified Residential Real Estate Appraiser- Certified to appraise only one to four unit, single family residential real estate “without regard to transaction value or complexity.”
3. State-Licensed Residential Real Estate Appraiser- Licensed to appraise uncomplexed one to four unit, single family residential real estate having a “transaction value of less than one million dollars”, and complex one to four unit of single family residential real estate having a “transaction value of less than two hundred fifty thousand dollars”.
4. State Registered Real Estate Appraiser Assistant- Anyone who has met the registration requirements for actively preparing real estate appraisals. The assistant must also hold a current and valid registration.
Note: A Real Estate Appraiser who is not certified or licensed by a state may not carry out any appraisal services that are related to a federal transaction. This law is in accordance with Title XI of the United States Code.
If you are interested in becoming any type of Real Estate Appraiser in the state of Ohio, you must first be at least eighteen (18) years of age. You must also be “honest, truthful, and of good reputation.”
Then, depending on the type of appraiser you wish to become, you’ll need to experience a certain amount of experience hours. For example, to become a “State-Certified Residential Real Estate Appraiser”, you’ll need 2500 hours of real estate appraisal experience. These hours must be experienced over a minimum of two years before you may file for an application.
You must also successfully complete a certain number of educational hours at an “institution of higher education.” To become a “State-Licensed Residential Real Estate Appraiser”, for example, you must complete ninety-three (93) educational hours before you may file for an application. Seventy-five (75) of the hours must be classroom time studying courses that are correlated to
real estate appraisal. Three (3) of the classroom hours must focus wholly on federal, state and municipal fair housing laws. Fifteen (15) of the classroom hours must be in regards to appraisal standards (USPAP) and provisions of the Ohio Revised Code.
Once you have completed the experience and educational requirements to become a Real Estate Appraiser in Ohio, you must fill out an application for the Ohio Division of Real Estate and Professional Licensing before you can be scheduled to take the required examination. You will need to pay the application fee; to provide a current face photo, your social security number, as well as copies of transcripts and certificates. You must also type your application by using black ink.
Note: Be sure that you carefully read the entire application before you begin filling it out. Also, be sure to follow its instructions completely or your application may be denied.
If the Division accepts your application, you will then receive a notice stating that you have one (1) year to take the test. The notice will also give you instructions on how to schedule your test. You’ll also receive a toll-free phone number for the Candidate Services Call Center (CSCC). It is with this number that you will call and schedule your test.
For further details on how to become a Real Estate Appraiser in the state of Ohio, contact the
Division of Real Estate and Professional Licensing at 77 South High Street, 20th Floor,
Columbus, Ohio 43215-6133. Or, you may log onto www.experioronline.com/ohre.htm on the Internet. Look for the “Candidate Information Bulletin.”