Do You Want to Be a Real Estate Appraiser in Arizona?

So you are interested in becoming a real estate appraiser in Arizona? You have an exciting career ahead! Depending on the type of appraiser you wish to become, there are various requirements you must fulfill.

No one can become an appraiser in just a day. Everyone starts out by becoming a Trainee and then gradually moves along to a Licensed, Certified, or Certified General Appraiser.

If you want to work as a real estate appraiser in Arizona you have to attend an accredited educational institution and obtain the required work experience. You will also need to register with the Arizona Department of Insurance and Finance Institution (DIFI) in the Real Estate Appraiser Division.

The Financial Institutions Department of Arizona is a regulatory body that governs appraisers and companies including AMCs (Appraisal Management Companies) which is done according to the specific federal guidelines. These appraisers and companies estimate the worth of real estate properties.

What Are Your Duties as a Real Estate Appraiser?

Your job as an appraiser is providing your clients with an objective market value of the properties they are interested in. None of your clients will ever be the same, nor will any of the properties you evaluate, which makes for an exciting and challenging career. Your clients could be a seller or a buyer, a real estate agent, a mortgage lender wanting to know the value of their assets, a person calculating taxes or maybe even a lease negotiator.

Who they are is inconsequential to your work. Regardless of the category your client falls in, you are mandated to provide them with an independent, well-researched and unbiased estimation of the value of a property.

How to Start as a Trainee Appraiser in Arizona

Aspiring candidates cannot become a professional in this field without starting as a Trainee Appraiser. You must work under an appraiser who is Certified and acts as your mentor and your guide, or you can pursue PAREA. Working under an experienced appraiser gives your career a good boost and allows you to learn quite literally on the job. PAREA offers a modern pathway for aspiring appraisers to fulfill their experience requirements using innovative technology. It provides practical experience in a virtual environment, combining appraisal theory and methodology through real-world simulations. This experience is delivered via a range of online and virtual reality technologies.

Steps for Becoming a Trainee Appraiser in the State of Arizona

• You must be 18 years of age.
• You must have a SSN (Social Security Number).
• You must complete seventy-nine (79) hours of Qualifying Education that includes:
  • REA270 Basic Appraisal Principles (30 hrs)
  • REA271 Basic Appraisal Procedures (30 hrs)
  • REA272 15-Hour National USPAP (15 hrs)
  • REA150 Supervisory Appraiser/Appraiser Trainee (4 hrs)

• You must be registered as a Trainee Appraiser with the Arizona Department of Financial Institutions.
• You must search for an appraiser who has been certified to become your mentor, or you can pursue PAREA.
• Trainees can not start PAREA until they have completed all one hundred fifty hours (150) hours of their Qualifying Education.

How to Become a Licensed Residential Appraiser in the State of Arizona

When you become a Residential Appraiser with a license, your scope of evaluation increases. You are now capable of evaluating residential, non-complex real estate properties, the units being from 1-4 and the transaction value cannot exceed $1,000,000 U.S. dollars. You can also start evaluating complex properties that do not exceed the value of $400,000 U.S. dollars. Complex one-to-four-unit residential property appraisal means one in which the property to be appraised, the form of ownership, or the market conditions are atypical.

When you start charging for your services you will need to write detailed appraisal reports for various clients such as lenders, individuals, AMCs, or banks. You will have to perform a fair amount of online research, as well as physically inspecting the property, and then writing a final report based on all of the data you collected.

Being a freelance appraiser gives you more choice in selecting your working days and hours and the ways to conduct your appraisal business - not to mention more freedom to decide your fees. However, you will have to take care of all the setup and all the other expenses required to do your job well and run your business. Whereas, if you are employed by a financial institution or a company that hires appraisers, then you will be able to enjoy a steady flow of income and the standard benefits received by full-time employees.

Steps You Need to Follow to Become a Licensed Residential Appraiser

• You must be 18 years of age.
• You must have a SSN (Social Security Number).
• You should have an Associate Degree or equivalent qualifying education having completed 30-semester hours that cover the specific topics needed for the stage (see Real Property Appraiser Qualifying Criteria).
• You must complete the required one hundred fifty (150) creditable hours of Qualifying Education by an approved, accredited provider or institution.
• Appraisers holding a valid Trainee Appraiser credential may satisfy the educational requirements for the Licensed Residential Real Property Appraiser credential by successfully completing the following additional seventy-five 75 educational hours:
  • REA273 Residential Market Analysis and Highest and Best Use (15 Hours)
  • REA274 Residential Appraiser Site Valuation and Cost Approach (15 Hours)
  • REA275 Residential Sales Comparison and Income Approaches (30 Hours)
  • REA276AA Residential Report Writing and Case Studies (15 Hours)

• You must have the work experience required which is one thousand (1,000) hours in no fewer than six (6) months. This experience can be gained under the supervision of a Certified Appraiser, or PAREA.
• You must be registered as a Licensed Residential Appraiser with the Arizona Department of Financial Institutions.
• You must successfully pass all required National Uniform Licensing and Certification Exams.

How to Become a Certified Residential Appraiser in the State of Arizona

Again, as your position rises so do your responsibilities and range of work. Once you become a Certified Residential Appraiser, you can evaluate residential real estate properties with 1- 4 units of any value or complexity. The classification also includes the appraisal of vacant or unimproved land that is utilized for one-to-four residential units for purposes or for which the highest and best use is for one-to-four residential units. The classification does not include the appraisal of subdivisions for which a development analysis/appraisal is necessary.

The same work expectations apply to Certified Residential Appraisers as they do to Licensed Appraisers. You can either work as a freelancer and work according to your will and investment capacity or join an institution that hires you as a Certified Appraiser. The choice is yours!

As a Certified Appraiser, none of the restrictions such as the transactional value or nature of the complexity of the property stops you from evaluating it. The area of your work expands, and you will find more opportunities than a Licensed Residential Appraiser. Most reports performed by a Certified Appraiser are accepted by financial institutions as well as real estate professionals.

You can also expect to receive better quality of work, and an increase of rate when you are a Certified Appraiser. You will still have to inspect properties, research online and conduct your work at courthouses or the assessors office.

Steps You Need to Follow to Become a Certified Appraiser in Arizona

• You must be 18 years of age.
• You must have a SSN (Social Security Number).
• You must have a Bachelors Degree in any field of study, Associates Degree in a field of study related to Business Administration, Accounting, Finance, Economics, or Real Estate, or successful completion of 30 semester hours of college-level courses in specific topic areas and hours (see Real Property Appraiser Qualifying Criteria).
• You must complete two hundred (200) hours of Qualifying Education for Certification by an approved, accredited provider or institution.
• Appraisers holding a valid Licensed Residential Real Property Appraiser credential may satisfy the educational requirements for the Certified Residential Real Property Appraiser credential by successfully completing the following additional fifty (50) educational hours:
  • Statistics, Modeling and Finance (15 Hours)
  • Advanced Residential Applications and Case Studies (15 Hours)
  • Appraisal Subject Matter Electives (20 Hours)
• You must have completed one thousand five hundred (1,500) hours of experience in no fewer than twelve (12) months. This experience can be gained under the supervision of a Certified Appraiser or PAREA.
• You must be registered as a Certified Appraiser with the Arizona Department of Financial Institutions.
• You must successfully pass all required National Uniform Licensing and Certification Exams.

How to Become a Certified General Appraiser in the State of Arizona

A certified, general appraiser is the highest position you can reach as an appraiser. You will be able to evaluate any kind of property either commercial or residential regardless of the value of the property.

Most certified general appraisers are seen evaluating commercial properties more-so than residential properties. The appraisal varies from small offices to expensive apartment buildings and commercial buildings alike.

The key difference between being a Certified General Appraiser and a Certified Appraiser is the additional required coursework hours, in addition to 1500 hours of commercial appraisal experience done under a Certified General Appraiser and who holds a Bachelor's Degree (at minimum). Commercial appraisals take much more time and research due to the complexity of the assessments involved.

If you do not appraise the property correctly, it could lead to losses in the millions. Given this, the qualifications required for becoming a Certified General Appraiser are also much stricter than the other preliminary positions.

Your job as a general Certified Appraiser can include analyzing and evaluating the real estate properties used for commercial use, making appraisal reports based on vast, historical market studies, evaluating and considering expenses that will be incurred in the process, and assessing and verifying lease transactions and sales data.

Steps You Need to Follow to Become a Certified General Appraiser in Arizona

• You must be at least 18 years of age.
• You must have a SSN.
• You should have a minimum of a Bachelors Degree (see Real Property Appraiser Qualifying Criteria).
• You must complete three hundred (300 hours) of creditable Qualifying Education by an approved, accredited provider or institution.
• You must have a minimum of three thousand (3,000 )hours of experience, completed in no fewer than 18 months. Half of the experience hours should be done for non-residential (commercial) properties.
• Appraisers holding a valid Certified Residential Real Property Appraiser credential may satisfy the educational requirements for the Certified General Real Property Appraiser credential by successfully completing the following additional one hundred (100) educational hours:
  • General Appraiser Market Analysis and Highest and Best Use (15 Hours)
  • General Appraiser Sales Comparison Approach (15 Hours)
  • General Appraiser Site Valuation and Cost Approach (15 Hours)
  • General Appraiser Income Approach (45 Hours)
  • General Appraiser Report Writing and Case Studies (10 Hours)
• You must be registered as a Certified Appraiser with the Arizona Department of Financial Institutions.
• You must successfully pass all required National Uniform Licensing and Certification Exams.

How to Apply for Your Appraiser License in Arizona

Once you have completed the required qualifiers, you may proceed with submitting an application for Real Estate Property Appraiser & Trainee Appraiser to the Division of Real Estate Appraisers. In addition to the form, more requirements need to be fulfilled.

To receive your appraisal license, you will have to pay the registration fees that are applicable for all positions. You will have to provide all the required legal documents. You will have to produce evidence showing that you have fulfilled the required education for qualifying for the position that you are applying for.

You will also need to supply evidence such as completion certificates, transcripts or any other documents. You have to have certified evidence of completion of the required secondary education such as a diploma, transcripts or certificates as well. You should have an Appraiser Experience Log that is also approved by the state.

None of the above-mentioned documents should be missing. After getting all the necessary documents ready just mail them to the Arizona Department of Financial Institutions.

After your application is approved by the department you will have to sit for examinations of the position that you have registered for. If you pass the examinations you reach the pedestal you want to achieve.