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Appraisers are paid to estimate the value of property after a systematic analysis of the prices of similar properties, or based on an analysis of discounted future returns. This valuation estimate requires market analysis and the subject property being appraised. Some appraisers work for a variety of clients on a fee basis; others are internal staff appraisers, producing value opinions for their employer. Most appraisers specialize in residential property, or specific types of commercial property. Federal laws require that any appraisal required when the government is involved directly or indirectly must be done by a state certified appraiser. Certification is at two levels, residential and general, and is based on a combination of tests and experience. Trade association designations which require more experience and education than the state certification process also are required by many clients, the highest of which is the MAI for Member of the Appraisal Institute.
The outlook for appraisers involved in specialized commercial appraisal and consulting, such as site analysis, buy versus lease decisions, property tax appeals, portfolio revaluation, and investment analysis, is quite promising. Many commercial and consulting oriented appraisers work within larger consulting firms including accounting and market research firms. Technology is having a major impact on the commercial and residential sectors of the real estate industry. The outlook for residential appraisal is being greatly influenced by the introduction of new technology. Opportunities abound for real estate professionals to revolutionize the residential sector, and residential appraisal firms that do not embrace new technology may become extinct.
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