Overview of Real Estate Finance

Four different types of Real Estate Finance Jobs:

1. Residential Mortgage Loan Officer- deal with residential mortgage loans
2. Residential and Commercial Development Finance- research local trends and financing for developers and development lenders
3. Corporate Real Estate Management- control the real estate of large corporations for investments and corporate use
4. Investment Analyst- assess, review, and create financial reports on a company's real estate portfolio and investment

Here is a link to a website that explains these Real Estate Finance Jobs in more depth. Careers in Real Estate Finance.  The biggest job in real estate finance is mortgages, whether it be for residential, commercial, or large developments. Mortgage companies either have specialty consumers, for example, strictly commercial mortgage loans, or they have a broad range of loans that they provide. 

There will always be a need for real estate finance, but the rate at which the careers will grow is uncertain.  Real Estate owners will always need financing when it comes to renovations or purchasing new property.  The only thing that I think will decrease the mortgage industry is too much government regulation to where it is too difficult to keep up with the procedures or if we go into a deep depression. 

Local Real Estate Finance Firms:

• Round Point Mortgage
• New American Funding
• TXL Mortgage
• Silver Mortgage
• Cornerstone Mortgage

Foreclosures are a big consideration for real estate finance companies.  When they are reviewing loan applications they need to calculate how big the risk of a foreclosure will be.  The higher the risk the more interest they will make the applicant pay.  When a person that receives the mortgage fails to make the monthly payments the property will soon end in foreclosure.  The lender will put the real estate up for sale at a reduced price.  This reduced price will cover what is left to be paid back on the loan plus interest, taxes, and other fees associated with transfer of title.

Overview of a Real Estate Appraisal

Appraisal
noun

1. the act of estimating or judging the nature of value of something or someone.
2. an estimate of value, as for sale, assessment, or taxation; valuation
3. an estimate or considered opinion of the nature, quality, importance, etc.

Above is the official definition of appraisal. An appraisal can mean different things and there are many different types of appraisals. Real Estate Appraisals are needed when a property needs to be valued. It is a report that looks at all aspects of the property and surrounding areas and gives a dollar amount to the value of a specific property. 

Some different types of Real Estate Appraisals are:

• Residential Appraisal
• Exterior Only Residential Appraisal
• Small Residential Income Property Appraisal
• Individual Condominium Unit Appraisal
• Two to Four Unit Residential Appraisal

There can be bad appraisals if the appraiser makes mistakes and does not take his or her time when evaluating the property.  Being an appraiser takes a lot of experience and time to perfect it and not make mistakes. You could also get an appraiser that is a poser and is not certified and does not follow the rules and regulations when doing the appraisal.

The view on appraisers means different things to different people. I believe that all around the opinion of real estate appraisers is good.  They are chosen to appraise a property and as long as they do their job accurately than they should have a positive view towards them.  I can see that if a customer has a bad experience with one or more appraisers that they will have a bad taste about appraisers. I cannot speak for other types of appraisers, such a personal property appraisers. 

Appraisers will always been needed even though information on the internet about properties will continue to grow.  Property owners will always be making improvements on their real estate, which in turn will eliminate the previous appraisal that was done on the property. Also, since appraisals are regulated that makes them more reliable and accurate when it comes to selling your home and trying to find out a reasonable asking price for your real estate.

Here is a website that has links to many different Real Estate Appraisal Forms, some of which were listed above.

Below is a video about Real Estate Appraisals and how the process is done.

Overview of a Real Estate Appraiser

In order to become a real estate appraiser, you have to take classes, pass a test, and then be approved by the state to become appraiser.  Each state has different requirements on how to become an appraiser at different levels.  In Texas, there are five different levels of appraisers;

• Appraiser Trainee
• Provisional Real Estate Appraiser
• State-Licensed Real Estate Appraiser
• Certified Residential Real Estate Appraiser
• General Certified Real Estate Appraiser

Here is one of the Texas Real Estate Appraisal Licensing Websites, Real Estate Express.com. The page that comes up is the Texas requirements for each level of appraisers listed above.  Each specifies the amount of Classroom Hours, Appraiser Experience, College- Level Requirements, and passing of an Exam.

On a daily basis, real estate appraisers might do the following depending on their specialty:

• Visit their current real estate property that is going to be appraised
• Evaluate the properties unique features and the features of the area around the property, the condition of the property, and any renovations that may have been made in the past
• Estimate the property's value based on earlier information gathered
• Write up reports of the estimated property value

Right now it is believe that there are just enough and maybe too many appraisers in the United States.  I make this conclusion because the growth rate for appraisers in 2010 is 7%, according to the Bureau Labor of Statistics, which is a slower growth than the average career.  It may not be growing at a faster rate because there are already enough appraisers for the demand of real estate appraisals or because they believe that the demand for appraisals will not be growing in the future.  This conclusion could be proven wrong if there is an increase in the demand for real estate which will ultimately affect appraisers.

Real Estate Appraisers are paid differently based on what type of appraiser they are and who they are working for.  Some firms pay appraisers salary, some pay strictly commission, and some have a base pay plus commission.  If you are an independent appraiser and work for yourself, you get paid on how much you are charging for each individual appraisal.

Appraisal Firms in the United States:

• National
• Metro-West Appraisal Co, LLC
• United States Appraisals
• Nationwide Appraisal Management
• Local
• Lowery Property Advisors, LLC
• Pinnacle Appraisal Group, LLC
• Paramount Property Analysts
• Brazos Valley Appraisals

These firms and many more firms are listed on the Real Estate Appraiser Directory Website. This website has plenty of information about different types of appraisal firms.  It has blogs, forums, testimonials, appraiser listings, and much more for someone looking for a career in an appraisal firm or for a property owner looking to have their real estate appraised.

This is a video of a Real Estate Appraiser that is a stand up comedian.  He brings humor into the appraiser's day to day life.