According to Exactitude Consultancy, the apraisal market is expected to reach a value of 37,14 billion by 2030. If you couple that with the real estate industry projected value of $5.85 trillion for the same period, you will understand why I have often been asked: Can you be a real estate agent and appraiser?
The answer is yes. As a real estate agent, you can also pursue certification as a residential appraiser. But you cannot wear both hats in a single transaction. Should you be hired as an appraiser in a transaction, you cannot be an agent in that same transaction.
You will have to clearly outline to your clients which real estate professional you are.
In this enlightening piece, we’ll delve into the possibilities and caveats of wearing these two hats. By sticking with me through this article, you’ll gain valuable insights that could potentially unlock new avenues for your career in real estate. So without further ado, let’s dive right in.
Requirements to Become a Real Estate Appraiser
Real estate appraisal and valuation are an important portion of the real estate exam. You can expect at least 5 questions on this concept.
But if you want to make appraisals your full-time job, then preparation takes a different route. To become a real estate appraiser, there are several steps to follow and requirements to meet.
These guidelines are primarily established by the Appraiser Qualifications Board (AQB). But they are minimum requirements. However, each state has the freedom to modify or add to these standards as they see fit.
Take Delaware and California for instance. The former strictly adheres to AQB’s set rules, while the latter imposes more stringent regulations requiring the completion of a 150-hour course.
The journey begins with becoming a trainee appraiser. This foundational step involves completing a 75-hour course and passing all related exams. However, it’s worth noting that there are no examination or experience prerequisites at this stage, anyone can start their journey here.
Trainee appraisers work under certified residential appraisers in good standing which allows them hands-on learning from seasoned professionals in the field.
After accumulating 1000 hours working under supervision along with 150 hours of qualifying education, individuals can then apply for state testing to earn their license as an official real estate appraiser or licensed residential appraiser.
There are different levels of appraisal licenses and certifications available. Starting from the Real Estate Trainee Appraiser (or apprentice) level, you could progress towards being a Licensed Residential Appraiser.
Further professional development could lead you to become Certified Residential Appraisers or even reach the pinnacle as Certified General Appraisers depending on your aspirations within this profession.
| Level | Experience | Education | Examination |
| Real Estate Trainee Appraiser | Zero | 75 hrs | None |
| Licensed Residential Appraiser | 1000 hrs in less than six months | 150 hrs | Licensed residential examination |
| Certified Residential Appraiser | 1500 in less than a year | 200 hrs | Certified residential examination |
| Certified General Appraiser | 3000 in less than a year and a half | 300 hrs | Certified general examination |
How to Balance Being an Appraiser and an Agent
Balancing the roles of an appraiser and agent in real estate can be a challenging task due to potential ethical and legal issues. Though dual licensing and dual agency are two different real estate aspects, they provide the same risks.
One such issue arises from the fact that it is illegal to function as both a real estate agent and appraiser within the same transaction. This regulation exists because there’s a risk that an individual might compromise their fiduciary duty, which requires them to act in the best interest of their client.
Attempting to wear both hats could lead to conflicts of interest. For example, as an agent, one might be inclined towards securing a high sales price for personal gain while disregarding fair market value, an appraisal principle, thus compromising objectivity.
There are a couple of factors to consider once licensed as both an appraiser and an agent:
Be Honest
To successfully work around these challenges, it’s crucial first, to be honest about your role in any deal. Transparency with all parties involved will help maintain trust throughout the process.
Never Overlap Duties
Avoid overlapping duties. If you’re functioning as an agent on a particular deal, refrain from serving also as its formal appraiser. You may, at best, provide informal estimates for your property listings. But if you are working as an agent, let that task be your core focus.
Juggle Time Wisely
Managing time efficiently between these two roles is key for maintaining balance without overwhelming yourself or neglecting clients’ needs. Consider implementing strategies like setting specific working hours for each role or using digital tools designed to streamline tasks related to property valuation and negotiation processes.
Should You Be a Real Estate Agent and an Appraiser?
This is not a decision someone can make for you. But I can offer my views on it.
I don’t personally find it worthwhile. As I covered in the article “Can You Have a Real Estate License and Mortgage License”, very few firms are willing to work with dually licensed agents in that capacity.
Most firms will want to work with either agents or appraisers depending on their function.
On the second front, you cannot operate as both an agent and appraiser in one deal. This will require you to choose which professional you are at a time.
You can certainly get both licenses especially if you intend to put your real estate license on hold to explore other career options. But if being an agent is your goal, then I’d say be the best agent you can be.
The Complexities of Dual Licensure
While it is possible to wear both hats as an agent and an appraiser in the same field, it may not always be practical or profitable depending on individual circumstances or market conditions. My advice, pursue a single real estate occupation and excel within it.
Next Steps:
If you’re considering taking on dual roles in the real estate industry, here are some action steps:
1. Research: Look at your state’s specific requirements for becoming a licensed real estate appraiser.
2. Assess: Honestly assess if you can manage balancing between two demanding roles without compromising either one.
3. Seek advice: speak to other professionals who have experience with dual licensing.
Do you have any experiences or thoughts about having multiple licenses within the property sector? Have you found success navigating these waters?
Share your insights below; I’m sure many readers would appreciate hearing firsthand accounts from those who’ve walked this path before!
