Appraisal Common Q&A

Use this guide to better inform yourself about the Nevada Appraisal licensing process.

Q-What Nevada Law Governs the licensing process and practice of appraisal?  A-The primary law governing the practice of real estate appraisal is NRS/NAC 645C. Click here to review NRS 645C  – Click here to review NAC 645C

Q-What must a student complete before they can register as an intern?
A-Students must complete at least 78 Hours of initial appraisal education. The 78 hours of education must include at least 15 hours of USPAP education as well as at least 3 hours of Nevada law. The remaining balance of appraisal education can be taken in any approved appraisal subjects. (Key Realty School’s balance of the 78 hours of education is comprised of Appraisal Fundamentals)

 

Q-Who does an intern practice under?
A-After completing the educational requirements a student would then activate the internship position under an already existing certified or general appraiser.

 

Q-Does a student need to take an examination before they can start the internship?
A-NO. Though there is a state licensing exam, the exam is taken during or after the internship. This is because the appraisal exam must be taken within one year of the activation of the appraisers license, not the internship. (The appraisal license and registered intern are two completely different positions, but the student must complete one to move into the next)

 

Q-What is the difference between the 150 Hour requirement and the 78 Hour requirement?
A-The state of Nevada requires 78 Hours of Appraisal education before a student can start the internship. The state of Nevada requires 150 Hours of Appraisal education before a student can become licensed. The difference in education is 72 hours, meaning that a student must take the balance of the 72 hours (in any approved appraisal education) before the registered intern can activate an appraisers license. Key Realty School recommends that the balance of education (72 hours) is taken directly before the states examination is given (therefore exam review). Education required by Nevada or other governing bodies may change, thus requiring additional education during the two year internship to activate the license.

 

Q-How can a prospective intern find an appraiser whom they can intern under?
A-Key Realty School can provide students with lists of existing licensed appraisers. Students can then seek out the internship position from this list or through contacts they have made in appraising, mortgage companies or real estate.

 

Q-Is the internship paid?
A-The pay scale is determined by negotiation between the licensed appraiser and the intern. Example: Appraiser “Smith” agrees to pay intern “Jones” $150 per appraisal completed. Appraiser “Smith” will sign off on the “Jones” appraisal to make it valid. Though “Jones” performed the majority of the work “Smith” will also retain $150 for signing off using his expertise.

 

Q-What is the demand for qualified real property appraisers?
A-There is a wide array of clients who use real estate appraisals. For instance, lenders use them for loan collateral purposes; lawyers use them in property disputes, such as divorces; insurance companies use them to assist in determining the value of the property to be insured; and property owners may use them when appealing tax assessments, for estate purposes and estimating a property’s value when buying or selling real estate.

 

Q-Do I need to obtain a credential or license in order to appraise real property?
A-Federal law requires all individuals appraising properties in a federally related transaction (e.g. a federally insured lender is involved in the transaction) to be either state licensed or certified. In addition, many states have enacted laws that require any real property appraisals to be performed by an individual who is state licensed or certified. Professional appraisal organizations also offer designations that often exceed the minimum requirements of state licensure. Since licensing/certification is required to show minimum competency, designations offer appraisers a way to further demonstrate their knowledge and professionalism.

 

Q-Who regulates real property appraisers?
A-Each state and territory has a real property appraiser regulatory program. In the vast majority of instances, a board composed of between five and nine individuals governs the program. In addition to issuing licenses and certificates, the board is also responsible for disciplining appraisers.

 

Q-Do I need a college degree to become an appraiser?
A-It is not necessary to have a college degree in order to become a licensed appraiser. Effective January 1, 2008, applicants for the state certified residential and state certified general classifications (statuses higher than licensed) must possess a college degree or complete specific college-courses. (Most applicants who do not possess the college degree can complete 21 college units in specific topics to meet the requirement)

 

Q-How can I gain the necessary experience?
A-One of the best ways to gain experience is to serve as an apprentice or trainee with a state licensed or certified appraiser. Many states offer a trainee classification that formalizes the relationship between the state licensed or certified appraiser and someone who is wishing to become one. (Note: Effective January 1, 2008, state certified appraisers or general appraisers can supervise trainees.) Professional appraisal organizations may also be helpful in assisting with mentor programs.

 

Q-What do I have to do to qualify to sit for the examination?
A-In order to qualify to take the state examination, you must have completed your qualifying education classroom hour requirement.

 

Q-How long is the examination?
A-Depending on the classification you are seeking to obtain, the examination is between 100 and 125 questions and takes approximately one to three hours.

 

Q-Do appraisers have to follow any set of performance standards or guidelines?
A-The Uniform Standards of Professional Appraisal Practice (USPAP), which are promulgated by the Appraisal Standards Board of the Appraisal Foundation, are the generally recognized performance standards for the appraisal profession. Violation of these standards can lead to disciplinary action by government regulators and appraisal organizations. A copy of USPAP can be obtained from The Appraisal Foundation.

 

Q-May I appraise any type of real property once I become state licensed?
A-Generally, real property appraisers can obtain one of three types of credentials issued by a state. Each credential allows an appraiser to perform assignments within the following parameters:

  1. State Licensed Appraiser: may appraise non-complex 1-4 family residential units with a value less than $1,000,000 and complex 1-4 family residential units with a transaction value less than $250,000.
  2. State Certified Residential: may appraise 1-4 family residential units without regard to transaction value or complexity.
  3. State Certified General: may appraise all types of real property.

Although a license/certification might be obtained, competency in a specific field of expertise is needed. Certain states may have laws that differ from these (AQB) qualification criteria. All appraisers should consult their state laws prior to accepting certain appraisal assignments.

 

Q-Why should I consider belonging to one of the professional appraisal organizations?
A-Professional appraisal organizations offer quality educational offerings and can keep you abreast of technological changes impacting the profession. Many offer “designations” that are awarded when you have completed a certain level of education and experience. These designations allow appraisers to demonstrate a higher level of expertise and specialization. In addition, they can serve as your voice on state and federal government issues. Many appraisal organizations are structured on a “chapter” basis, which allows members to network with their colleagues in a local area.

 

Q-How do I become a designated appraiser?
A-You will need to contact one of the many professional organizations representing appraisers directly regarding membership and the course of action for designation. The following national appraisal organizations are Appraisal Sponsors of the Foundation:

  • American Society of Appraisers
  • American Society of Farm Managers and Rural Appraisers
  • Appraisal Institute
  • International Association of Assessing Officers
  • International Right of Way Association
  • Massachusetts Board of Real Estate Appraisers
  • National Association of Independent Fee Appraisers
  • National Association of Master Appraisers

 

Q-What does the future hold for the appraisal profession?
A-Of course, predicting the future is risky business, but the outlook for the appraisal profession is generally positive. Like most professions, the appraisal business is rapidly changing due to technology and globalization of the American economy. It is clear that these changes will open many doors to valuation experts, particularly those with a computer or statistical background. Appraisers are important when the economy is growing and also when it is in recession. Overall there may be fewer appraisers in the future but those who find their niche should be prosperous.

 

Q-Does the government regulate appraisers?
A-Currently, the government regulates only real property appraisers. The power of regulation currently rests with the individual states and territories that issue licenses and certificates to real property appraisers. In addition, each individual State Real Property Appraisal Board is responsible for disciplining appraisers.

At this time, there are no immediate plans for the regulation of appraisers who specialize in other types of property.

 

Q-How do I become an appraiser?
A-The process of becoming an appraiser differs according to the various appraisal disciplines. Most appraisers are required to have a certain number of hours of education and experience. In addition, if an appraiser wishes to become state licensed or certified in real property or if an appraiser wishes to become “designated” by an appraisal organization, they must also pass a comprehensive examination.

The Appraiser Qualifications Board (AQB) of The Appraisal Foundation recommends the following minimum criteria for state licensed/certified real property appraisers:

***These are the minimum national requirements, some states may require more education or experience.

Experience Required Experience Required Experience Required

Licensed   Residential

2,000 hrs.

90 hours

Yes

Certified Residential

2,500 hrs.

120   hours

Yes

Certified   General

3,000 hrs.

180   hours

Yes

 

Please note that the criteria above is a recommended minimum and that the states may decide to increase this criteria as they see fit.

The AQB has also established voluntary minimum criteria for personal property appraisers, as follows:

Experience Education Exam

Required Required Required

Personal Property

Appraiser Minimum *1800-4500 hrs 120 hrs Yes

Qualification Criteria

*Experience hours range from 1,800 of personal property appraisal experience, of which 900 hours must be specialized, to 4,500 hours of market related personal property non-appraisal experience in areas of specialization.

 

Q-Do you need a college degree to become an appraiser?
A-Appraisal education in the United States has typically been provided by professional appraisal organizations. Accordingly, at the present time it is not necessary to have a college degree in order to become an appraiser. Many appraisers choose to receive training through traditional methods, such as through professional appraisal organizations. It should be noted that some of these associations require a college degree for their advanced designations. On an increasing basis, appraisers are supplementing their education through courses at the community college or university level.

 

Q-What is an appraisal “designation”?
A-An appraisal designation is awarded by one of many professional trade organizations that represent appraisers (see listing of Appraisal Sponsors on the back panel). Designations are awarded after an individual has completed a specific course of appraiser training through an organization. Each organization offers multiple designations in differing fields or specialties.

 

Q-How do I become a designated appraiser?
A-You will need to contact one of the many professional organizations representing appraisers regarding membership and the course of action for designation.

 

Q-Why should I join a professional appraisal organization?
A-A professional appraisal organization provides appraisers with the opportunity to network with other professionals, to keep abreast of pertinent issues such as regulatory changes and to receive continuing education.

 

Q-How do I obtain trainee experience?
A-Trainee experience can be gained by aligning yourself with a professional, established appraiser as an apprentice or a trainee. Many appraisers work as an apprentice while completing the required education. For real property appraisers, many states have formal trainee programs.

 

Q-What is the demand for qualified appraisers?
A-There is a wide array of clients that use appraisals such as lenders, insurance companies, attorneys, governments, museums and tax assessors.

 

Q-What is The Appraisal Foundation?
A-The Appraisal Foundation is a non-profit educational organization dedicated to the promulgation of professional appraisal standards and appraiser qualifications for all appraisal disciplines. The Foundation accomplishes this mission through the work of two independent Boards, the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB).

 

Q-Why should I be interested in the work of the Foundation?
A-The Foundation, through its Appraisal Standards Board, publishes the Uniform Standards of Professional Appraisal Practice (USPAP), which is the generally accepted set of performance standards for appraisers. It is these standards that are enforced by state governments and various professional appraisal organizations. In addition, the minimum qualifications for certain appraisal disciplines are established by the Appraiser Qualifications Board of the Foundation.