Real estate appraisers are hired by lenders, property owners, probate attorneys, and anyone else who needs a valuation for their real property. Their job is to research and analyze the subject property and compare that to similar properties and recent sales to determine a market value.
Appraisers can work with residential and commercial properties but tend to specialize in one or the other. The profession is rewarding, challenging, and growing, but to become an appraiser requires a financial commitment.
In this article, we’ll detail the costs of becoming a real estate appraiser and the return on your investment.
Education Costs to Becoming a Real Estate Appraiser
You’re required to take qualifying education (QE) hours for pre-licensing (to begin your appraisal training) and to become licensed or certified in your state. Many of the top training centers offer membership or bundles that allow you to take all the courses you need at any time within the membership period. Most of these also include exam prep. Some bundles include online and live events, and some are à la carte.
Some states require additional courses. For example, California, Colorado, Florida, Georgia, Kansas, Kentucky, and Wisconsin require more than 75 hours of QE to become a trainee. California requires 159 hours, Kansas 154, Colorado and Wisconsin require 150 hours, Florida 104, Kentucky 97, and Georgia requires 94 hours.
When choosing a course package, make sure it complies with the state where you intend to work.
Pre-Licensing Course Costs
À la carte pricing ranges from $300 to $500 per course depending on the length of the course. The total cost to become a trainee purchasing individual courses is about $1200 and usually does not include exam preparation.
Membership or bundle pricing ranges from about $650 to $1550. At the lowest end, you’re restricted to online only with limited customer support. The mid-range package for most training programs is $1055 and includes the required courses, digital manuals, proctored exams, and customer support seven days a week. Premium packages include live and interactive instruction at least once a week.
In all states, you are required to complete the following AQB Basic Qualifying Education courses:
- Basic Appraisal Principles (30 hours)
- Basic Appraisal Procedures (30 hours)
- National USPAP course (15 hours)
Most states also require you to complete a Supervisor/Trainee orientation course (usually 3–6 hours) before you can begin your on-the-job training.
Licensing Course Costs
Depending on which license level you choose to pursue—Licensed Residential, Certified Residential, or Certified General—in most states, you’ll need to complete an additional 75 to 225 hours of QE while working on-the-job as a licensed trainee. Individual courses range between $300 and $500. Bundles range from about $900 to $3,300.
The financial commitment to become a licensed appraiser depends on your career goals and the state where you wish to work. Some appraisers also elect to take optional courses to enhance their skills and marketability once they become licensed.
Exam Costs
Every appraiser is required to take the national Uniform Licensing and Certification Examination issued or endorsed by the Appraiser Qualifications Board (AQB). The cost to take the exam varies by state but generally runs between $200 and $300.
Exam preparation courses are highly recommended. Some are included as part of an education bundle. Otherwise, most cost between $200 and $300.
Licensing and Application Fees
Every state is different, so it’s imperative that you check the licensing fees in the state where you wish to work. As an example, Arizona charges $400. In Texas, it’s $560, and in California, the fee is $1,035 for a residential appraiser. Each license level may have a different fee.
To become a trainee in Texas, you’re required to pay an application fee of $250, and in California the fee is $930. Arizona charges a single fee. Renewal fees also vary by state.
Fingerprinting and background checks may be required. If so, the budget is $100 for those costs.
Supervised Experience Costs
As a licensed trainee, you can begin to earn income. Appraisal trainees often work part-time or are paid on a per-appraisal basis. Additionally, you may be required to purchase tools for the job, including appraisal software, a personal computer, and other items.
How much you make and what you need to spend to complete your training is a question to ask your supervisor during the interview process.
Continuing Education Costs to Becoming an Appraiser
Continuing education (CE) is required in all states, and all appraisers must complete the seven-hour National USPAP Update course every two years.
Many appraisers meet their CE by purchasing a bundle or membership, which can range from $350 to $850. CE bundles or memberships allow you to take all your mandatory and elective courses for a single price. Individual appraisal CE courses cost between $100 and $200, with some electives under $100.
Advanced certifications or specializations are optional but are an excellent way to stand out within the profession. Specializations include areas such as business valuation, luxury home appraisals, or green home appraisals. To become certified as a luxury home or green home appraiser requires specific knowledge of the market and the appropriate certification courses. McKissock offers both certifications: the Green Home Appraiser Certification costs $575, and the Luxury Home Appraiser Certification is $650.
Additional Costs
Additional costs include membership to professional organizations, tools, and other resources.
Professional Organizations
- American Society of Appraisers (ASA): $690 annually
Tools and Resources
- Software: $29 to $49 per month and $150 to $800 per year
- MLS Fees: $25 to $100 per month
- Travel costs: $50 to $100 per appraisal
- Errors and Omissions (E&O) insurance: $500 to $1,000 per year
Other tools you need include a tape measure, calculator, computer, camera, and phone. While these are one-time purchases, things like cell phone service and internet incur monthly fees ranging from $50 to $150.
Many appraisers will opt for cloud storage, which can also have a monthly fee. Google Drive, Dropbox, Microsoft OneDrive, and Apple all offer cloud storage.
Total Estimated Costs
While the total cost to become a licensed appraiser is dependent on the state where you work and which license level you wish to obtain, you can expect to spend $2,350 to $6,285 for education, exam, and licensing fees.
| Estimated Start-up Education, Exam, and Licensing Costs to Become a Licensed or Certified Real Estate Appraiser | |
| Pre-licensing Courses | $650 to $1550 |
| Licensing/Certification Courses | $900 to $3300 |
| Exam Preparation Courses | $200 to $300 |
| Examination Fees | $200 to $300 |
| Licensing/Application Fees | $400 to $1035 |
| Fingerprinting | $0 to $100 |
| TOTAL ONE-TIME COSTS | $2350 to $6285 |
Tips to Save Money
A few tips to save money include purchasing your education in bundles. Packages and memberships can save hundreds of dollars and eliminate the exam preparation course fees. Study for your exam to avoid having to pay a re-examination fee.
Begin as a Licensed Residential Appraiser (required in some states). Once you earn that license, you can start working independently and earning a higher income. You can even start your own appraisal business. Then, you can choose to upgrade to a higher license level (Certified Residential or Certified General) or work toward other certifications and specialties when you’re ready.
Return on Investment (ROI)
Licensed and certified real estate appraisers will always be in demand. According to the Bureau of Labor Statics, the field is expected to grow on par with other professions over the next decade. The National Association of Realtors reported an annual median income of $102,000, with a quarter of all appraisers earning salaries between $100,000 and $150,000 (2022).
Appraisers can increase their earning potential by specializing or upgrading to a higher license level. Certified Residential Appraisers earn between $70,000 and $200,000 and Certified General Appraisers earn between $81,000 and $147,000.
Conclusion
The total cost to become a real estate appraiser range from around $2,350 to $6,285, and the process typically takes one to two years to complete. However, the return on your investment and career potential more than make up for the financial and time commitments. The career outlook for appraisers is strong, and there are opportunities to specialize to increase your marketability and income potential.
Take the first step to become a licensed appraiser with McKissock Learning. We’ve helped launch the careers of more appraisers than any other provider, and we’re here for you with dedicated support available seven days a week.
Explore our appraiser trainee courses to kickstart your appraisal career, and don’t hesitate to reach out with any questions.
