When a piece of property is up for sale & needs an appraisal, whom do you call: certified residential, certified general? Not all appraisers appraise all types of real estate, so before you begin your search, let’s brush up on who does what and what it all means for you.
In the big, wide world of real estate, there are many different property types, which are generally divided between two categories: residential and commercial. Then there’s the murkier category of either/or, where the property’s potential – its “highest and best use” – could go either way.
There are also basically two types of appraisers: certified residential and certified general. The difference between the two comes out to number of qualified education hours, number of experience hours and any additional requirements from their state of practice.
At Authority Appraisals, we serve many cities and counties in both Missouri and Illinois, but for the sake of this article, we’ll focus on Missouri’s standards for real estate appraisers.
Requirements for Missouri Residential and General Real Estate Appraisers
Certified Residential Appraiser:
- 200 hours of qualified education courses
- At least a Bachelor’s degree
- 2500 hours of experience in no less than 24 months
- Pass the state license examination
Certified General Appraiser:
- 300 hours of qualifying education courses
- At least a Bachelor’s degree
- 3000 hours of experience (at least ½ in non-residential) in no fewer than 30 months.
- Pass the state license examination
Each level of education and experience legally allows an appraiser to assess different types of property and different property values.
What Residential Appraisers and General Appraisers Legally Assess:
Certified Residential Appraiser:
- Can appraise a residential single-family or multi-family property with up to four units regardless of value or complexity
- Can assess “highest and best use” if the purpose will be solely residential
- Cannot assess commercial, mixed-use or income-producing property
- Should not assess property that has income-producing potential (i.e. large tracts of land that may offer the possibility of agricultural or recreational development)
Certified General Appraiser:
- Highest level of education and experience
- Can assess both residential and commercial properties
- Can assess mixed-used and income-producing properties
- Can assess any property regardless of complexity or value
- Can assess any property where “highest and best use” is not fully determined
Spotlight on the Highest and Best Use
This standard requires that the appraisal considers not just the current use of the property, but it’s potential uses. For this determination, the appraiser may ask:
Is the use physically possible?
Is the use legal?
Is the use financially feasible?
Is the use the most productive (considers rate of return and risk)?
Five Smart Questions to Ask a Prospective Appraiser
No matter the type of real estate, it’s always good to make your own assessment before choosing the right appraiser for the job. This goes beyond checking out their legal qualifications:
- Make sure they have experience with your property type.
- Makes sure they have knowledge of your area.
- Ask for references.
- Ask about any professional associations and designations.
- Check with their state agency to make sure they’re in good standing.
Authority Appraisals offers both certified residential and certified general appraisers. Our team collectively provides experienced knowledge of multiple counties in Missouri and Illinois and hold ourselves to the highest standards of industry ethics. Check out our team for your next residential or commercial project.authori
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