Appraisers and Assessors of Real Estate

Transcription

1 SOC : Appraise real property to determine its fair value. May assess taxes in accordance with prescribed schedules. Introduction Assigning a value to real property is at the heart of every real estate transaction, whether the property is to be bought, sold, transferred, mortgaged, condemned, or assessed for tax purposes. Bankers, loan brokers, divorce attorneys, real estate brokers, redevelopment agencies, and government agencies all use real estate appraisers. While the purpose for needing an appraisal may vary, it is always based on obtaining an informed estimate of a property s market value. Appraisers use their professional training to assign a value to a property, by utilizing, among other techniques, the comparison of sale prices for similar properties in comparable locations. Part of appraisers training involves coursework in the influences on real estate value, types of value, real estate markets and analysis, and the valuation process. The federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 mandated states to license real estate appraisers who appraise property in federal transactions. This includes any transaction in which the loan is to be insured by the Federal Deposit Insurance Corporation (FDIC). In response, California made the Office of Real Estate Appraisers responsible for licensing appraisers and enforcing ethical and professional standards. Depending upon the level of experience, real estate appraisers are licensed as either trainee appraisers, residential appraisers, certified residential appraisers, or certified general appraisers. Appraisers may also work for a county assessor s office, evaluating changes to properties and reappraising property for the purpose of determining property tax. Nature of the Work My math background is a big plus I have a good feel for numbers, although there is no Real estate appraisers play an important role in every real estate transaction. By using their professional skills they assign a value to the property involved. They arrive at an accurate and fair value through the analysis of comparable sales and investigation of the site, taking into account the use of the property, its zoning, its income potential, and other factors. Real estate appraisers may work for lending institutions or for government agencies. They may also work independently, establishing a private practice. Appraisers who work for lending institutions make their appraisals to protect the institution s interests, so that an accurate loan amount can be recovered in case of default. Ethical and professional standards are upheld within lending institutions by separating the functions of the appraisal department and loan department. These standards are maintained in accordance with the Uniform Standards of Professional Practice, which details the criteria for an honest and ethical appraisal. magic formula for assigning value to a property. Independent fee appraisers charge a fee based on the complexity of the property. A simple appraisal may take a single day to perform, although experienced appraisers might perform two or more per day. Complex appraisals take more time since they may involve unique properties, such as golf courses or properties with unusual architectural fea- 7

2 tures. Independent fee appraisers may work out of their homes as independent contractors, whereas appraisers employed by lending institutions or government agencies tend to have offices within the respective organization s facilities, spending a good deal of time out in the field. For-fee appraisers may work as long as eight to twelve hours a day. Government appraisers tend to work normal eight-hour days with less daily time pressure; nevertheless, each year the tax roll has to be completed, at which time overtime hours may be required. Job Requirements Skills/Characteristics Appraising is both an analytical and an intuitive task. Technical skills are important since appraisers must justify their rationale for assigning a value to a property. The value of a property depends on its location and use, and takes into account many factors among them, determining whether the property is a personal residence as opposed to an income property, in which case its valuation would depend on an estimate of income and expenses. Because of the interaction with property owners, appraisers need to be able to relate to many different kinds of people. Appraisers need to be professional, diplomatic, courteous, and punctual. They also need to be unbiased; they are evaluating the property not the owner. They need to be detail oriented and have the ability to present information accurately and concisely in writing since their appraisals will be presented as written reports. Training/Experience For-fee appraisers specialize because they are licensed according to the scope of work they are permitted to do. Licensing is the result of a combination of education, experience, and qualifying scores on an exam appropriate to the appraisal level. Education is relatively minimal, requiring 90 hours at the trainee and residential license level; the certified residential license requires 120 hours and the certified general license requires a minimum of 180 hours. Experience, however, is substantial. To become certified at the residential level, which allows appraisers to appraise properties up to 50% 40% 30% 20% 10% 0% Knowledge, Skills & Abilities Knowledge Building and construction Customer and personal service Mathematics Economics and accounting Law and government Skills Mathematics Active listening Reading comprehension Speaking Judgment and decision making Time management Abilities Oral comprehension Deductive reasoning Problem sensitivity Inductive reasoning Written expression Number facility Top Employing Industries (California) 8

3 a value of $1 million, the trainee must work under the supervision of a licensed appraiser, acquiring a minimum of 2,000 hours of acceptable appraisal experience. Gaining further experience, defined as a minimum of 2,500 hours and 2 1 / 2 years of acceptable appraisal experience, qualifies appraisers as certified residential appraisers. At this point, they may now independently appraise all residential properties of under five units. Certified general appraisers, who are permitted to appraise all types of real estate, are eligible to be licensed upon completion of 3,000 hours and 2 1 / 2 years of acceptable appraisal experience. The Appraiser Qualifications Board (AQB) reviews appraiser qualifications periodically and may recommend changes. New standards, adopted by the AQB in 2004, will become effective in 2008 coursework will become more extensive and hours will be increased. Minimum educational guidelines will also be imposed, requiring candidates to hold, at minimum, an associate degree or take an approved list of courses from an accredited institution. States may also choose to pass more stringent licensing and certification requirements beyond those imposed by federal guidelines. If appraisers work for the government, they will be trained through a California State Board of Equalization 24-hour course and will be required to pass their licensing test within the first year of employment. Minimum qualifications for Santa Clara County include a hiring examination and possession of a bachelor s degree prior to being placed on the hiring list. If appraisers work for a lending institution, they will be trained in-house. These institutions require a bachelor s degree or relevant experience and the possession of a trainee license. Beyond licensing, ongoing professional training is required through continuing education courses. Employment Recruitment/Hiring I like appraising odd properties... I just finished appraising a 3,000 square-foot Victorian from Courses from local community colleges may help the prospective entrant decide whether they would enjoy the day-to-day work of appraisers. Alternatively, networking with professionals, such as realtors, might provide insights into the realities of this line of work. Experience in any capacity within a lending institution may lead to opportu- nities to be trained as an appraiser. Developing an informal network not only helps appraisers remain apprised of employment opportunities, but also allows them to assess trends within the marketplace. Benefits & Challenges If appraisers are launching themselves as independent fee appraisers, their challenge will be to find an appraiser willing to supervise the 2,000- hour mandate. Ideally, training programs will help identify supervisory placements, but student appraisers may be left to fend for themselves. In this case, one suggestion might be to ask lending institutions for the names of the appraisers with whom they contract and apply directly to them. Once licensed as a residential appraiser, it will take one or two years to become established as an independent fee appraiser. If appraisers work as staff appraisers for lending institutions, they could be provided with a car, computer, health benefits, pension, and ongoing educational opportunities, as well as a stable salary. In addition, they have the advantages of established communication with others in the field. 9

4 With the increased use of technology on the job, the ability to use computer applications, digital cameras, and other common hightech devices is becoming more necessary to be competitive within the market. Education Distribution Given that the average age for appraisers locally is reported to be about 50, the prospects are good for employment as the existing workers approach retirement, although the tendency within the industry is to prefer those appraisers who are well seasoned. Career Ladders & Lattices Because of the limited educational requirements and the growing need for appraisers, the ability to transition into the field from other occupations is fairly easy. Occupational Wages $60 $50 $40 $30 $20 $10 $0 $60 $50 $40 $30 $20 $10 $0 10

5 Matthew Leslie Appraiser I 1. Please tell us about your current position and how you arrived there. My current position is appraiser I, which is a one-year training position with local government and just completed ten months on the job. My interest in appraising began when I took a class with my wife and found the content interesting. My wife works as an appraiser aide, and whenever there were openings for appraisers, she would encourage me to apply and to take the test that would qualify me to be placed on the hiring list. After screening, applicants have to take a test appropriate to the position. In my case they tested primarily on math skills and reading comprehension. I scored well, was called for an interview, and was one of eleven who were hired at that time. My previous work convinced me that this was the place I wanted to be. I was happy to take off my shoes and stay. After graduating from college, I worked in the computer industry for eleven years, first in a mainframe computer company, from which I was laid off, then as a technician in tech support for five years. My most recent position was project manager for a computer peripherals company, but in 2002 I was laid off again. Although I put my résumé out there and had a few interviews, I could not find a job, which was frustrating. As I was looking for work, I took on side work with my current employer, first as a data collector for the Business Department, verifying the existence of business properties within the county, then in the Registrar of Voters, and finally in the Public Service Division. Here, my main function was to answer basic real property questions, such as Who owns this property? at the public service counter. If I can t answer the questions, then I refer them to the appropriate staff person. 2. Please describe your typical workday so that a job seeker might get a sense of what you actually do. I work from 8:00 a.m. to 4:30 p.m. with 30 minutes for lunch; I m not required to work overtime. I look at my activity list, plan my workday, and evaluate each one of my activities, such as the transfer of property or permit, for example, to decide if a reappraisal is required. If a permit is involved, I decide whether the new construction adds value. If the transaction is odd or it is new construction, then I go out into the field to inspect the property. I inspect all properties where permits have been taken out. It s necessary to determine whether the work that was done has caused the property value to increase. I might get a call from a taxpayer with additional information about a property, allowing me to modify the appraisal. Our database is very detailed it contains the entire record for each property. Every six days, I have a duty day, when I answer calls from the public. 3. Which aspects of your education and/or training made you more capable or marketable in this field? I have a Bachelor of Science degree in electrical engineering from DeVry University, where I experienced hands-on education. My math background is a big plus I have a good feel for numbers, although there is no magic formula for assigning value to a property. I have worked in technical support, so I can deal with people who are upset and remain calm even when they are not I can help them resolve their problems. This is a valuable quality for a representative of government: we re on the frontline those that people talk to first. 4. What are the most exciting aspects of your job? What do you like most about your job? I like appraising odd properties. For example, I 11

6 just finished appraising a 3,000 square-foot Victorian from It was challenging finding comparable sales this is the investigative part, finding out about the property. I really enjoy going out into the field, but not everyone does. I also enjoy working with numbers and it s nice when my appraisal matches an appraisal given by a forfee appraisal. In contrast to my previous position, I have no required overtime. I m responsible for my own work, not responsible and dependent on someone else to get my job done. 5. What do you dislike or find challenging about your job? What s challenging is actually what I like figuring out the appropriate value for an odd property. I have to get the information and then put it together. I prefer to be busy. Early fall is a slow time of the year, since we ve completed all our work for the tax rolls, with our deadline set a little before the end of the fiscal year. 6. What advice would you give to a person seeking a job in your field? Take appraising classes at the local community college to see whether you like the field. If you think you might like to work in government, look for any short-term job to get an idea of what it s like. 7. What qualities make someone a star performer in this occupation? Attention to details, being organized, math skills, analytical skills, intuitive skills, and social skills related to customer service are all important. 12

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