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The “Certified Residential Appraiser” and “Certified General Appraiser” may sound similar to many people. It seems that both have a degree of recognition in the real estate market since they hold the “Certified” status. But if you are thinking of pursuing a career in the appraisal field, you better figure out their distinctions before deciding which license to obtain.
The difference between a Certified Residential Appraiser and a Certified General Appraiser is that a Certified General Appraiser can appraise any real estate. In contrast, a Certified Residential Appraiser is restricted to appraise property with up to 4 dwelling units, regardless of its value or complexity.
I have done some research from numerous credible sources such as The Appraisal Foundation and The Appraisal Institution. I hope these findings can help you better understand the distinction between the Certified Residential and Certified General Appraiser license.
This post will compare the requirement differences to become a Certified Residential Appraiser and a Certified General Appraiser, difficulties of their exams, demand of the professions, income figures, and outlook of each appraisal license.
Summary of Differences between a Certified Residential Appraiser and a Certified General Appraiser
| Certified Residential Appraiser | Certified General Appraiser | |
|---|---|---|
| Scope of Work | Property with up to 4 dwelling units, regardless of its value or complexity. | Any real estate |
| Appraisal Education | 200 hours of qualifying education | 300 hours of qualifying education |
| Work Experience | 1,500 hours in no fewer than twelve (12) months | 3,000 hours in no fewer than eighteen (18) months. At least half of them must be in non-residential work. |
| Examination | 4 hours; 125 questions | 6 hours; 125 questions |
| College Level Education | Fulfill 1 of 6 options of college level education | Bachelor’s degree or higher |
The Certified General Appraiser has a Broader Scope of Work than a Certified Residential Appraiser
This is the major difference between Certified Residential Appraiser and Certified General Appraiser.
Although you can appraise any property regardless of its value or complexity, it is restricted to properties with up to 4 dwelling units.
In contrast, a Certified General Appraiser can appraise any real estate. In addition to residential units, CG appraisers can evaluate for all different types of properties – for example, commercial buildings, retail stores, hotels, golf courses, industrial plants, farmland, schools, and even cemetery.
Do Certified General or Residential Appraiser License has a Higher Demand from the Market?
I think the best way to find out is by observing at which license appraisers are holding. After all, it is reasonable to assume everyone would want the best for their appraisal business.
As you could see from the pie chart, more than half of the appraisers hold the Certified Residential license.
On the other hand, even though it takes longer and more work experience to become a Certified General Appraiser, they still represent a significant portion of 41.1% of the real estate appraisal industry.
When I reviewed the figures from Appraisal Institute, the proportions of CG appraisers has been in a slight upward trend since 2014.
Certified General Appraisers Earn More than Certified Residential Appraisers
Many Certified General Appraisers tend to expand their scope of work to commercial properties. According to Salary.com (May 20, 2020), appraisers who focus on commercial real estate earn an average of $101,968 per year. Their annual income typically ranges between $87,703 and $116,973.
In contrast, residential real estate appraisers have an average annual income of $54,561. The income range is usually around $44,966 and $63,052.
Is commercial real estate appraisal a good career? Check out this complete guide. In it, you’ll find the type of work involved as a commercial real estate appraiser, the income potential, and the training you need to have to become one.
The Certified General Appraiser License Requires more Appraisal Education
To become a Certified Residential Appraiser, you only need to complete 200 hours of appraisal courses from an approved education provider.
On the other hand, to obtain the Certified Residential Appraiser license, you must complete 300 hours of appraisal classes.
In addition to the 75 hours of Appraiser Trainee courses, here are the ones you must complete to be a Certified Residential or Certified General Appraiser.
| Appraisal Education | Certified Residential Appraiser | Certified General Appraiser |
|---|---|---|
| Residential Market Analysis and Highest & Best Use | 15 | |
| Residential Site Valuation and Cost Approach | 15 | |
| Residential Sales Comparison and Income Approaches | 30 | |
| Residential Report Writing and Case Studies | 15 | |
| Real Estate Finance, Statistics, and Valuation Modeling | 15 | 15 |
| Advanced Residential Applications and Case Studies/ Part 1 | 15 | |
| Advanced Residential Report Writing (elective) / Part 2 | 30 | |
| General Appraiser Market Analysis and Highest and Best Use | 30 | |
| General Appraiser Sales Comparison Approach | 30 | |
| General Appraiser Site Valuation and Cost Approach | 30 | |
| General Appraiser Income Approach/Part 1 | 30 | |
| General Appraiser Income Approach/Part 2 | 30 | |
| General Appraiser Report Writing and Case Studies | 30 | |
| Electives | 30 | |
| Total Hours | 210 | 300 |
The first step to your appraisal career is to complete the pre-licensing courses from a trusted education provider. McKissock received an incredible rating from its students, and their online lessons are taught by instructors who have actual experience in the appraisal industry. You may click here to find out more about their courses. (**)
More Work Experience Hours are Needed to Become a Certified General Appraiser
Each level of appraiser license has its work experience requirements. You could obtain them by working on appraisal assignments. In many states, you would need to record the details into a regulatory-approved log sheet.
To become a Certified Residential Appraiser, you must accumulate 1,500 hours in no fewer than 12 months.
On the other hand, to become a Certified General Appraiser, you must accumulate 3,000 hours in no fewer than 18 months. Keep in mind that at least 1500 hours must be for non-residential work.
If your route is first to become a Certified Residential Appraiser, then upgrade to a Certified General license, once you have accumulated the 1500 hours of residential work, it’s better to swift your focus to non-residential appraising.
Alternatively, you may simply bypass the Certified Residential Appraiser route. You can go directly for the Certified General license and allocate the work hours mostly on non-residential assignments.
On a separate note, I had a chance to connect with a Commercial Real Estate Appraiser. He started his appraisal career when he was still studying in college. But he went straight into the commercial field and never done any residential work. You could find his sharing of his appraisal career in this post.
The College-Level Education Requirement is Different
To become a Certified Residential Appraiser, you must complete 1 of 6 options of college-level education. Well, one of the options does not really require you to have completed study at college. Rather, you just need to have worked as a Licensed Residential Appraiser for at least 5 years.
On the contrary, it is mandatory that you have a Bachelor’s degree or higher education for becoming a Certified General Appraiser. Although I agree that having a stringent requirement may enhance the overall quality of the industry, I cannot find the rationale that the Bachelor’s degree can be any field of study.
Why can a Music degree graduate pursue the Certified General Appraiser license, but not a Licensed/Certified Residential Appraiser who has years of appraising experience simply due to the college-level education requirement?
Is the Certified Residential or Certified General Appraiser Exam Easier?
You will have 4 hours to complete the Certified Residential Appraiser Exam and 6 hours for the Certified General Appraiser’s.
Both exams have 125 questions. The result will be a scaled score range from 0 to 110. Their required passing score is 75.
There is no apparent trend to which exam has a higher passing rate. If you review the required appraisal education, the Certified Residential and Certified General do not have too many overlapped courses.
However, Certified General Appraisers are not limited to working on commercial properties. They can also work on residential assignments.
It is reasonable to assume that the CG exam would also cover residential topics. But not vice versa for Certified Residential Appraisers.
Also, the CG appraiser exam is given two more hours to write. Therefore, the CG exam should cover broader topics than the CR’s.
To increase your chance in passing the exam on the first time, make sure to check out our exam hacks. In there, not only you will find the content of the exam, but also 10 effective tips on how to prepare for it.
Final Thoughts about being a Certified Residential or General Appraiser
I believe obtaining a Certified General Appraiser license is a fabulous way to expand your scope of work beyond the residential market. It gives you a greater competitive edge over other non-CG appraisers.
Especially nowadays, many appraisers have a concern that the residential market is overly competitive, focusing on other appraisal niches could be a nice blue ocean strategy for your business.
Furthermore, some highly recognizable appraisal designations also require their designee to be a Certified General Appraiser. For example, the MAI designation offered by the Appraisal Institute. (If you want to know more about the MAI, here is a post for you.)
By the way, I wrote this post based on the Appraisal Qualification Board (AQB) guideline. But every state could impose an additional requirement for their appraisal license applicants. You may click here to find out the steps to become a real estate appraiser in your state.
So would you choose to become a CR or CG appraiser? What are your considerations when making the decision? Please let me know in the comment section below.
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Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. Some of the posts on this site may contain views and opinions from individual not related to JCHQ Publishing. They do not necessarily reflect our view or position.
Reference:
- The Appraisal Foundation
- The Appraisal Institute
- Pearson Vue National Appraiser Examination Candidate Handbook (source)
- Census Bureau – New Houses Sold by Sales Price: United States (source)
- Salary.com
