Do you assume the person coming to your house is a qualified appraiser or, do you ask questions?
This post is all about the qualified appraiser: How to be sure you have one.
Most people assume that the person calling them to set an appointment for an appraisal is a qualified appraiser.
I am about to remind you why it’s so important to not make that assumption.
You are going to learn about which questions you need to ask (and Why) to confirm you will be inviting a qualified real estate appraiser into your home.
This post is all about the qualified appraiser: How to be sure you have one.
Learn more about Carole and Bev
Becoming a Qualified Appraiser Takes Longer Than You May Think
The process to become a real estate appraiser has changed several times since the licensing became mandatory.
But, one thing remains constant…. it takes several years and a ton of experience to become a qualified appraiser.
Each state has different rules to becoming a real estate appraiser.
Here is a quick breakdown of Pennsylvania’s requirements for real estate appraisers:
LICENSED APPRAISER TRAINEE
This is where you begin.
A Licensed Appraiser Trainee is only permitted to appraise properties while under the direct supervision of a Certified Residential Real Estate Appraiser or a Certified General Appraiser. In order to be a Licensed Appraiser Trainee in Pennsylvania you must do all of the following:
- Complete 75 hours of specific appraisal education.
- Provide a recent Criminal History Records Check (CHRC) from the state police or other state agency.
- Pay an application fee.
- Complete a minimum of 28 hours of continuing education every 2 years.
- Pay a license renewal fee every 2 years.
- More details regarding the fees and classes can be found here.
CERTIFIED RESIDENTIAL REAL ESTATE APPRAISER
Once you have completed the above requirements to become a Trainee, you will begin working on the requirements listed below. This process will take most people at least 5 years.
A Residential Real Estate Appraiser is permitted to appraise properties which include: Residential single family homes and multi-family homes up to 4 units. In order to be a Residential Real Estate Appraiser in Pennsylvania you must do all of the following:
- Have a Bachelor’s Degree or higher OR an Associates Degree in business administration, accounting, finance, economic, or real estate OR 30 semester hours of college level courses in specific subject areas.
- Complete 200 hours of specific appraisal education.
- Complete 1,500 hours of supervised experience as a Licensed Appraiser Trainee.
- Provide a recent Criminal History Records Check (CHRC) from the state police or other state agency.
- Pay an application fee.
- Submit acceptable training logs and appraisal reports.
- Be approved by the State Board of Certified Real Estate Appraisers
- Pass an examination (this examination can take several hours).
- Pay a certification fee.
- Complete a minimum of 28 hours of continuing education every 2 years.
- Pay a license renewal fee every 2 years.
- More details regarding the fees and classes can be found here.
CERTIFIED GENERAL APPRAISER
Once you have completed the above requirements to become a Trainee, you will begin working on the requirements listed below. This process will take most people at least 5 years.
Some will begin with first becoming a Residential Real Estate Appraiser and then move on to becoming a Certified General. And some will go directly from Trainee to General.
A General Appraiser is permitted to appraise all real estate properties which include: Commercial, Mixed Use and Residential. In order to be a General Appraiser in Pennsylvania you must do all of the following:
- Have a Bachelor’s Degree or higher.
- Complete 300 hours of specific appraisal education.
- Complete 3,000 hours of supervised experience as a Licensed Appraiser Trainee.
- Provide a recent Criminal History Records Check (CHRC) from the state police or other state agency.
- Pay an application fee.
- Submit acceptable training logs and appraisal reports.
- Be approved by the State Board of Certified Real Estate Appraisers
- Pass an examination (this examination can take several hours).
- Pay a certification fee.
- Complete a minimum of 28 hours of continuing education every 2 years.
- Pay a license renewal fee every 2 years.
- More details regarding the fees and classes can be found here.
Still not a Qualified Appraiser
Hard truth, but once the appraiser is licensed they are still not a qualified appraiser.
Matter of fact, even after at all of the above requirements have been completed, the appraiser usually knows just about enough to be dangerous.
This is why most real estate appraisers will stay connected to their supervisor / mentor long after they become licensed.
If that continued relationship is not possible, the newly licensed appraiser will find a group of peers to align with in order to continue their education alongside experienced qualified appraisers.
Personally, I love my apprentice and we plan to stick together for a very long time.
I also introduce her to our peers and encourage her to learn from all valued avenues.
Plus, even though I have been in the real estate industry since 2001, I still find myself consulting with my peers on a regular basis because this is how we become better appraisers.
There is always something new to learn. Always.
Asking questions and surrounding yourself with knowledgeable professionals is key to becoming a qualified appraiser.
Our office prides ourself in thinking outside of the box and this is exactly how we do it.
We stay connected and continually look for opportunities to learn.
Not all Lenders will send a Qualified Appraiser to Your House.
Another hard truth.
In order for an appraiser to be accepted by (most) lenders to complete property valuations we need to submit our license, resume, errors and omissions insurance, sample appraisals and a current background check.
Fannie Mae purchases loans from the lender and set standards by which the lenders must follow.
Recently Freddie Mac and Fannie Mae have approved standards which allow a Lender (Bank, Mortgage Company) to send a Property Data Collector to your house to gather information.
This data collector is not regulated or licensed and definitely not educated in a way that a homeowner would expect.
In most cases they are not background checked either.
There are no set requirements to becoming a Property Data Collector.
Many lenders are offering these positions to anyone who has a driver’s license.
So, basically, your pizza delivery person could also be the person coming inside your home for the “appraisal”.
Not only are the Property Data Collectors not qualified to pay attention to the many details, they could also be a threat to your family’s safety.
Appraisers are now being forced into new territory.
Because of all this nonsense many appraisers are jumping into private work.
Private work consists of appraisals for divorce, tax appeal, inheritance taxes, life estates, relocation, cash sale, listing for sale, etc.
Think of it this way: if you have a say in who the appraiser is then it is a private appraisal.
These type of appraisals are very different from lender appraisals.
And, unfortunately, not all licensed appraisers are qualified to complete a credible appraisal report that will be defensible in court and/or acceptable by the IRS.
How Do I Know I am Getting A Qualified Appraiser?
First, I will help you with qualifying a lender appraiser.
Then, I will help you with qualifying a private appraiser.
LENDER APPRAISER
If you are getting an appraisal for lending purposes I have some good news:
Fortunately, not all lenders / banks / mortgage companies are lowering themselves to the new Fannie Mae / Freddie Mac standards.
So, ask your lender if they will be using a licensed appraiser to inspect your house.
Next, when the “appraiser” calls to set the appointment be sure to confirm that a licensed appraiser will be entering your home by asking for the appraiser’s name on their license and look them up to be sure they are actually a licensed appraiser and not a property data collector.
PRIVATE APPRAISER
If you are choosing your own appraiser be sure to ask about their experience in regards to the particular purpose of your appraisal.
Ask the appraiser if they are new to the private appraisal world.
The appraiser may respond with something like: “I have been appraising for 30 years”…. This does not answer your question.
Just because someone has been appraising for 30 years does not automatically make them a qualified appraiser for your situation.
Think of it this way….. if a doctor has been operating on knees his entire career – would you trust this same doctor to operate on your spine? I sure wouldn’t.
Also, be sure to ask them what is the difference between a lender appraisal and a private appraisal.
If the appraiser tells you that the private appraisal is basically the same as a lender appraisal then, keep searching for a qualified appraiser.
Here’s why:
- Private appraisals are very different from lender appraisals.
- Private appraisals allow us to be fully transparent with the Homeowner/Client.
- Private appraisals have a totally different scope of work and should never be completed on a Fannie Mae form.
- Private appraisals need to be defensible in court.
- If the appraisal will be sent to the IRS there are specific requirements that the appraiser needs to follow in order for the report to be accepted.
Additionally, be sure to ask these 3 important questions.
Am I a Qualified Appraiser?
Sometimes Yes, Sometimes No.
Betcha didn’t expect that answer!
It depends on the Client’s needs.
Here are 3 examples of what I am Not qualified to appraise:
- Eminent Domain (Right of Way)
- Commercial Properties
- Mixed Use Properties (combination of residential and commercial)
But, I am happy to help you find an appraiser that is qualified in those areas!
Why are Zen Appraisals the best qualified appraisers for you?
First, we will ask you the right questions to help you decide that for yourself.
Additionally, I fully believe that people hire people – I believe you are entitled to know who we are – ESPECIALLY because we are coming inside your home.
Plus, I also believe that if we are asking you to be transparent with us then, it’s only fair that we give you the same courtesy.
So, here is a little peek into our world:
CAROLE HENRYSEN
I was born and raised in Philadelphia, and currently live with my husband Greg in a little town called Ambler just outside of Philadelphia.
Together we have 5 children, 3 granddaughters, 1 puppy, and 2 grandpuppies. (all dogs are puppies to me no matter how old they are) If you have pets in your home, please expect me to love on them.
When my youngest child began kindergarten I decided that I needed to be more than a full time stay-at-home-mom.
My first day in the real estate industry was in 2001.
The reason I was drawn to the real estate profession was because I find unique homes absolutely fascinating and I wanted the flexibility to be available as a volunteer for all of my children’s school and sports functions.
First, I obtained my real estate sales license and proceeded to sell homes while earning my education and apprenticeship hours required to apply for my Residential Real Estate Appraiser Certification.
In 2007, I passed the Certified Residential Real Estate Appraiser exam on the very first try with a 92% result. I am very proud of that because I worked so hard for it and many appraisers do not pass on the first (or second) try.
My supervisor / mentor was an amazing teacher who became one of my closest friends and we continued to work alongside each other long after I became licensed, until he passed away in 2022. I miss him daily.
For many years my appraisal work focused mainly on typical homes for lender clients.
Then, in 2018, I had a debilitating accident which left me unable to work for 8 months.
While I was stuck at home I decided to focus on taking online classes to learn more about high value, high quality and unusual properties.
When I was finally able to go back to work, our niche became million dollar+ homes.
Every appraisal became exciting to me – it is like solving a giant jigsaw puzzle. I absolutely love the challenge!
Then, in 2020, we began focusing more on education related to private work. I love being able to talk freely with the homeowners about the entire appraisal process.
BEVERLY VARALLO
In 2021, I met Beverly Varallo in a national appraiser group.
Small world because she lives just 25 minutes away from me!
Bev grew up on a farm in New Jersey and currently lives just outside of Philadelphia in Bensalem with her husband and 3 children who are all incredibly kind people.
I am so proud to call Bev my associate and friend. She reminds me of me because she is open-minded, thinks outside the box and always friendly. We hit it off immediately.
Her background is in real estate as an office manager of a residential real estate appraisal company where she had her hands in all aspects of the organization.
Bev also spent some time as an assistant to the director of operations of a marketing company which gave her the opportunity to hone her analytic skills.
And, the role in which Bev is most proud is that of “mom” to three kids who are very active in sports but also top of their classes and genuinely good humans.
We make such a good team. Our goals and priorities for our family, business and clients are in full alignment.
We are grateful to be able to provide our clients with a service that best serves their needs…. whether it’s providing an appraisal or just answering a question.
Looking forward to chatting with you soon!
This post is all about the qualified appraiser: How to be sure you have one.
