Appraisal ManagementCommercial AppraisalsResidential Appraisals

Understanding Different Appraiser Licenses

By May 14, 2019 June 24th, 2019 No Comments
Licensed Appraiser

When it comes to determining the market value of your residential or commercial property, bringing in a licensed appraiser is a given. But did you know there are many different types of appraiser licenses? Here’s what you need to know about the various levels of certification and what’s required to become professional real property appraiser. 

THE BASICS: GENERAL TYPES OF APPRAISER CLASSIFICATIONS

Not all appraisal reviews are the same, which is one of the reasons why these different licensing levels exist. Residential reviews, for example, require a certified residential appraiser. Commercial reviews, on the other hand, require a certified general appraiser. While requirements may vary from state to state, these are the general types of appraisers and what they can do. 

Trainee Appraiser

A trainee appraiser, also known as an apprentice appraiser or registered appraiser, is the lowest level of appraiser classification and is where most appraisers begin their careers. This type of appraiser may perform appraisals under the direct control and supervision of a certified residential or certified general appraiser Supervisory Appraiser and may only appraise those properties which the state-certified Supervisory Appraiser is permitted by his/her current credential and that the Supervisory Appraiser is competent to appraise.

Educational requirements include passing the course and examination for at least 75 hours of state-approved coursework, including the 15-Hour National USPAP Course.  No qualifying exam is required at a national level however one may be required by certain states. It’s also important to note that not all states recognize the trainee level. 

No experience is required as a prerequisite to become a trainee.

Licensed Residential Appraiser or State Licensed Appraiser

A licensed residential appraiser, also known as a state licensed appraiser, may perform any appraisal not used in a federally related financial transaction unless it falls into one of the following categories:

  • Non-complex one-to-four unit residential properties with a transaction value less than $1,000,000.00
  • Complex one-to-four residential units having a transaction value less than $250,000

Educational requirements include passing the course and examination for at least 150 hours of state-approved coursework, including the 15-Hour National USPAP Course.   At this level, the appraiser is also required to pass a Licensed Residential Real Property Appraiser exam approved by the Appraiser Qualifications Board (AQB). In addition, 1,000 hours of experience are required to be obtained in no fewer than six (6) months.

Certified Residential Appraiser

Similar to a licensed residential appraiser, a certified residential appraiser cannot perform an appraisal used in a federally related financial transaction unless it meets the following conditions: 

  • One-to-four unit residential properties without regard to transaction value or complexity
  • Any type of real property where the transaction value is less than $250,000.00

Educational requirements include passing the course and examination for at least 200 hours of state-approved coursework, including the 15-Hour National USPAP Course. The appraiser must also pass an AQB-approved Certified Residential Real Property Appraiser exam.  In addition, 1,500 hours of experience are required to be obtained during no fewer than 12 months.

Certified General Appraiser

A certified general appraiser can appraise any type of real property for any purpose.

Educational requirements include passing the course and examination for at least 300 hours of state-approved coursework, including the 15-Hour National USPAP Course. The appraiser must also pass an AQB-approved Certified General Real Property Appraiser exam.  In addition, 3,000 hours of experience are to be obtained in no less than 18 months, to include 1,500 hours of non-residential experience.

If you want to learn more about appraiser licenses or if you want to ensure your appraisal team is properly certified, check out this MountainSeed article about appraiser reviewers

To find more information on appraiser qualification criteria visit the Appraiser Qualifications Board or inquire with your state.