True Tips & Insights
Are you intrigued by the idea of becoming a luxury real estate appraiser? There are numerous benefits to specializing in this lucrative appraisal niche. By charging higher fees and completing fewer assignments each month, you can enjoy a higher income. Additionally, you’ll have the chance to evaluate unique and high-end properties, which can provide interesting and challenging appraisal opportunities. Here are some useful tips on how to embark on a career as luxury real estate appraisers.
Become a certified residential or certified general appraiser
Appraising a custom luxury home is a complex residential appraisal assignment. So, at a minimum, you must be a certified residential or certified general appraiser. If you haven’t already achieved one of those license levels, then you’ll need to upgrade your appraisal license as the first step toward becoming a luxury home appraiser.
Make sure you’re well-suited to specialize in luxury appraisal
Once you’ve become a certified residential or certified general appraiser, you are technically qualified to appraise luxury properties. But before you dive in, make sure you have the skills, traits, and knowledge needed to be successful in this niche specialty.
“Appraisers interested in this type of valuation work must be effective communicators, detail-oriented, and skilled problem solvers,” says Daniel Pham, appraisal curriculum and content specialist at Havah. Appraisers who excel in this specialized field are generally those who “are willing to spend the time necessary to complete extensive research, are willing to write detailed appraisal reports, and are willing to communicate and interact with real estate agents and builders in the luxury real estate market,” says Daniel.
Additionally, you should have an appreciation of quality—craftsmanship, artistry, and design—if you want to excel as a luxury real estate appraiser.
Familiarize yourself with the luxury home market
Next, make sure you understand the global and local luxury real estate markets, as well as the psychology of luxury buyers. You need “to have an ability to understand how the features of a luxury home and the home itself will be accepted by the most likely luxury homebuyers in that market,” says Daniel.
“One way to gain a better understanding of market reaction,” he advises, “is through completing relocation appraisals in which an appraiser closely monitors days on market, current active competition, withdrawn and expired listings, and overall real estate trends and heavily focuses on a home’s marketability.”
“Appraisers with a real estate marketing or custom home building background also easily adapt to valuing these custom and exceptional quality homes,” Daniel continues.
Additionally, you can gain technical knowledge by researching and reading architectural, marketing, and building articles, as well as technical papers about high-end and custom homes. Recommended resources include the National Association of Home Builders, Architectural Digest, and the Institute of Luxury Home Marketing.
Earn a professional certification
This step is optional, but highly recommended. Certifications from a professional organization are a great way to demonstrate your appraisal knowledge and expertise.
“I have been very happy with my homes, but homes really are no more than the people who live in them.”
