Definition
A Licensed Appraiser is a professional designation in the real estate industry allowing its holder to perform valuations on certain residential properties. A licensed appraiser can appraise:
- Non-complex residential properties (1 to 4 units) with a value up to $1 million.
- Complex residential properties (1 to 4 units) with a value up to $250,000.
To become a licensed appraiser, individuals must complete 150 classroom hours of pre-certification education, including coverage of the Uniform Standards of Professional Appraisal Practice (USPAP). Additionally, they must acquire 2,000 hours of experience over a minimum of 12 months.
Examples
- Jane Doe is a licensed appraiser who specializes in suburban one to four-unit residential properties. She is frequently called upon by local banks to appraise homes as part of the mortgage lending process.
- Mike Smith, a licensed appraiser, was engaged by a real estate investor to evaluate a four-plex apartment building being considered for purchase. Given the property’s non-complex nature and valuation of $750,000, his license adequately covers this appraisal.
- Sara White, another licensed professional, is tasked with appraising a complex historical district home valued at $200,000. Given her knowledge of historical property challenges and her licensure constraints, this falls within her scope.
Frequently Asked Questions (FAQs)
What distinguishes a licensed appraiser from a certified appraiser?
A licensed appraiser can appraise non-complex residential properties up to $1 million and complex ones up to $250,000. In contrast, certified appraisers have broader authority, including higher-value properties and commercial real estate.
What is considered a “complex” property?
Complex properties are generally those with unique characteristics that complicate the valuation process, such as historic homes, properties with unusual features, or those in specialized markets.
How long does it take to become a licensed appraiser?
It typically takes at least 12 months to fulfill the 2,000 hours of required experience, alongside completing the mandatory 150 classroom hours of education.
What is the USPAP?
The Uniform Standards of Professional Appraisal Practice (USPAP) are the quality control standards for federally related real estate appraisals and evaluations in the United States.
Can licensed appraisers perform commercial appraisals?
Most licensed appraisers are restricted to residential properties. Commercial appraisals generally require a certified general appraiser designation.
What continuing education is required?
Licensed appraisers must complete continuing education courses as mandated by their state to remain current with appraisal standards and legal requirements.
Related Terms and Their Definitions
- Certified Residential Appraiser: A professional designation allowing for the appraisal of more complex and higher value residential properties compared to licensed appraisers.
- Certified General Appraiser: The highest level of appraiser certification, allowing for the appraisal of all types of real property.
- USPAP: Uniform Standards of Professional Appraisal Practice, guiding ethical and performance standards for real estate appraisal.
- Real Estate Appraisal: The process of developing an opinion of the value of real property.
Online Resources
- Appraisal Foundation Official Website: The Appraisal Foundation - Offers comprehensive information on becoming an appraiser and USPAP standards.
- Federal Housing Administration (FHA) Appraiser Requirements: FHA Resources
- Appraisal Institute: Appraisal Institute - Provides resources and education for real estate appraisers.
References
- Appraisal Foundation. “Real Property Appraiser Qualification Criteria.” URL
- Uniform Standards of Professional Appraisal Practice (USPAP). URL
Suggested Books for Further Studies
- “The Appraisal of Real Estate” by Appraisal Institute
- “Mastering Real Estate Appraisal” by Dennis H. Carr
- “Real Estate Appraisal: From Value to Worth” by Tony McGough
- “The Uniform Standards of Professional Appraisal Practice” (USPAP) by The Appraisal Foundation
Real Estate Basics: Licensed Appraiser Fundamentals Quiz
