How to Start an Appraisal Business
Opening an independent appraisal practice, from credentialing questions to the first appraisal a client pays for.
An independent appraisal practice starts with credentials, then setting up the business, getting its tax ID and cover, and billing the opening appraisal. Who to invoice, rush fees and follow-up visits are covered in the real estate appraiser invoicing guide linked below.
On credentials, The Appraisal Foundation's criteria page (In the US, checked October 31, 2026) says "the AQB establishes the minimum education, experience, and examination requirements for real property appraisers to obtain a state license or certification." It also says "State appraiser regulatory agencies are required to implement real property appraiser licensing and certification requirements that are no less stringent than those issued by the AQB in the Criteria." Apply for the license or certification through your state's appraiser board.
On oversight, the Appraisal Subcommittee's about page (In the US, ASC, checked October 31, 2026) says "The Appraisal Subcommittee (ASC) oversees the real estate appraisal regulatory framework for federally related transactions."
Worked example, with sample figures: for one single-family appraisal, the bill shows 1 × $475.00 = $475.00, with a rush fee of 1 × $75.00 = $75.00, for $475.00 + $75.00 = $550.00. Use your own figures; these are only an illustration.
Step-by-step startup guide
Follow these steps to launch your real estate appraiser business on solid footing.
- 1
Check your state's appraiser board
Ask your state's appraiser regulatory agency which credential you need for the work you plan, and how to apply for it.
- 2
Know the AQB criteria
The Appraisal Foundation's criteria page (In the US, checked October 31, 2026) says the Real Property Appraiser Qualification Criteria "is issued by the Appraiser Qualifications Board (AQB)."
- 3
Register the practice
The SBA's launch guide (In the US, SBA, checked October 31, 2026) says "Register your business to make it a distinct legal entity."
- 4
Get an EIN
The IRS EIN page (In the US, IRS, last reviewed or updated October 16, 2026) says "Print your EIN confirmation letter for your records." once it's issued.
- 5
Arrange insurance
The SBA's launch guide (In the US, SBA, checked October 31, 2026) describes professional liability insurance as coverage that "protects against financial loss as a result of malpractice, errors, and negligence."
- 6
Deliver and invoice the first appraisal
Complete the report and bill the client named on the engagement. The real estate appraiser invoicing guide covers who to bill and extra fees.
Tips for starting your real estate appraiser business
- Keep a log of each assignment and its fee. The IRS recordkeeping page (In the US, IRS, last reviewed or updated May 1, 2026) says "You may choose any recordkeeping system suited to your business that clearly shows your income and expenses."
- Budget for self-employment tax. The IRS self-employment tax page (In the US, IRS, last reviewed or updated October 30, 2026) says "The self-employment tax rate is 15.3%."
- Know where credentials are listed. The ASC's home page (In the US, ASC, checked October 31, 2026) says "ASC maintains national registries of appraisers and AMCs in compliance with Title XI."
- Put the engagement terms, including the fee and due date, in writing before the inspection.
How Billed helps you get started
Features to look at as you set up your business.
Customisable Invoices
Billed's features page says: "Choose invoice template, add your logo and business info and customize invoices according to your needs."
Record Offline Payments
Billed's features page says: "Record offline payments easily with Billed App payment management."
Client Invoices
Billed's features page says: "See all of customer’s invoices in one place and save time."
Payment Reminders
Billed's features page says: "Send payment reminders to your customers to get paid faster on your invoices."
Frequently asked questions
More Startup Guides
Invoice Your First Appraisal
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Step | Who sets it | Dated source |
|---|---|---|
| Minimum criteria | The Appraisal Foundation: "the AQB establishes the minimum education, experience, and examination requirements for real property appraisers" | The Appraisal Foundation (In the US, checked October 31, 2026) |
| State credential | Your state's appraiser board | Your state's board |
| Federal oversight | The ASC "oversees the real estate appraisal regulatory framework for federally related transactions" | ASC (In the US, checked October 31, 2026) |
| Tax ID | IRS EIN application | IRS (In the US, last reviewed or updated October 16, 2026) |
| First appraisal | Report and invoice | Real estate appraiser invoicing guide |
When this isn't for you
Aimed at appraisers opening their own practice. Staff appraisers at a lender or an assessor's office work under their employer's setup.