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Are you interested in learning how to become a luxury real estate appraiser? There are many reasons to consider focusing on this lucrative area of assessment. Not only can you charge a higher fee while completing fewer tasks per month, but you also have the opportunity to evaluate custom, high-end properties that are fun and challenging to evaluate. Here are some helpful tips on how to become a luxury real estate appraiser.
Become a registered residential appraiser or a registered general appraiser
Evaluating a custom luxury home is a complex residential appraisal task. So, at a minimum, you must be a registered residential appraiser or a registered general appraiser. If you haven’t reached one of these levels, then you’ll need to upgrade your appraisal license as a first step toward becoming a luxury home appraiser.
Make sure you’re suited to specialising in luxury appraisals
Once you become a certified residential appraiser or a certified General appraiser, you are technically qualified to evaluate luxury properties. But before you dive in, make sure you have the skills, attributes, and knowledge you need to succeed in this niche.
“Evaluators who are interested in this type of assessment work must be effective communicators, detail-oriented and skilled problem solvers,” says Jo A. Traut, assessment curriculum and content specialist at McKissock Learning. Appraisers who excel in this area of expertise are typically those “willing to take the time necessary to complete extensive research, to write detailed appraisals, and to communicate and interact with real estate brokers and builders in the luxury market,” Trout said.
Also, if you want to be a good luxury real estate appraiser, you should have an appreciation for quality, craftsmanship, art and design.
Familiar with luxury housing market
Second, make sure you understand the global and local luxury real estate markets and the psychology of luxury buyers. You need “the ability to understand the characteristics of a luxury home and how the house itself will be accepted by the most likely luxury buyers on the market,” Trout said.
“One way to get a better sense of how the market is reacting,” she suggests, “is by completing a relocation appraisal, during which the appraiser closely monitors market conditions, current active competition, return-out and past listings, and overall real estate trends, and pays close attention to the marketability of the home.”
“Appraisers with a background in real estate marketing or custom home construction are also easily adapted to evaluate these custom and superior quality homes,” Trout continued.
In addition, you can gain technical knowledge by researching and reading articles on architecture, marketing and construction, as well as technical papers on high-end and custom homes. Recommended resources include the National Association of Home Builders, Architectural Digest, the Luxury Home Marketing Association, and the American Institute of Architects (AIA).