If you’re thinking about specializing in luxury appraisals, you may be wondering: What are the benefits of becoming a luxury real estate appraiser? Is now a good time to specialize? If this niche has been on your mind, you might want to consider pursuing that goal sooner rather than later. Why? Allow us to explain.
Here are four reasons to become a luxury real estate appraiser this year.
1. The luxury market is stabilizing
This year the luxury market is looking stronger than it has been for quite a while. Now that it’s recovering, there will likely be a higher demand for appraisers who have the specialized skills needed to appraise luxury and high-end properties.
Moreover, the upper-tier real estate market tends to be less influenced by economic fluctuations, providing insulation that the traditional market tends to lack. As wealth is transferred from generation to generation and Millennials start to accumulate assets and purchase property, it is very likely the luxury real estate market will continue to see positive growth for years to come.
2. You’ll be able to offer a unique skillset
It’s no secret that the number of evaluations being completed by non-appraisers and hybrid valuation products is increasing. For this reason, “real estate appraisal is a profession that requires resolve and commitment as we witness more outside forces attempt to reduce the importance of a valuation performed by an expert,” says Jo A. Traut, appraisal curriculum and content specialist at McKissock Learning.
However, the complexity of many luxury homes increases the need for licensed appraisers who have the skills and experience that non-appraisers and automated tools just don’t have. According to Traut, “appraisers can remain passionate about the appraisal profession by specializing and providing valuation services for complex real estate properties such as luxury homes. A credible luxury home valuation cannot be accomplished by a non-appraiser, through a hybrid valuation product, by an AVM, or by an inexperienced appraiser with an unrealistic turn time and fee.” Thus, having tangible proof that you are skilled in appraising luxury homes can help solidify your job security as a licensed appraiser.
3. You’ll get to do exciting, challenging work as a luxury real estate appraiser
If you’re looking for something to spice up your workday, taking on luxury home appraisals could be an option. “First and foremost, appraising luxury residences is exciting and enjoyable,” says Traut. “According to realtor.com, the most viewed homes on their website are those listings that feature opulent and unique customization. In general, people are inherently curious about non-traditional homes, and luxury properties fall into this category. This is a specialized niche that is easy to become passionate about—what better way to appraise?”
4. You can earn higher fees for fewer assignments
Another perk of appraising luxury homes is that it allows you to earn more while taking on fewer assignments. “Depending on the market and type of luxury property, an appraiser may only have to focus on 5-8 appraisal assignments a month instead of juggling 15-25 assignments to achieve the same monthly income. It is not unrealistic for a luxury home appraisal to require 3 to 5 times the amount of time required to complete an appraisal on a more traditional residential property,” Traut says.
Moreover, compared to traditional home appraisals, the complexity and uniqueness of luxury homes allows you as the appraiser the time to work more at your pace and style. Jo Traut explains, “By specializing in this area of expertise and gaining a steady flow of clients that seek appraisers with this knowledge, an appraiser can let go of overly demanding clients on appraising traditional properties—those that request impractical requirements, expect unrealistic turn times, and cut corners on appraisal fees.”
Ready to become a luxury real estate appraiser? McKissock is excited to announce a new professional certification for appraisers. Differentiate yourself by becoming a Certified Luxury Home Appraiser™ (CLHA).