Real estate appraisers are nationally certified under the Real Estate Appraisal Law, and their main job is to determine the economic value of real estate and express that value as a price. Real estate appraisers are specialists who calculate the appropriate value of real estate such as land and buildings, and are positioned as experts who can make fair judgments that take into account various factors such as the market economy and geographical conditions.
As of January 2024, there were 8,696 registered real estate appraisers and 1,187 assistant real estate appraisers. As of January 2024, there were 8,696 registered appraisers and 1,187 assistant appraisers.
The core of a real estate appraiser's work is "appraisal work," which determines the value of real estate. This work is the exclusive domain of real estate appraisers and cannot be performed by unqualified persons or persons who hold other qualifications.
Appraisal services include the following
In these operations, real estate appraisers use the following three valuation methods to determine the value of real estate.
| Valuation Method | Outline | Main Applicable Subjects |
|---|---|---|
| Cost method | A method to determine the value by adjusting the replacement cost of the subject property for depreciation. | Real estate in general, including buildings |
| Transaction Case Comparison Method | Method to obtain price by comparing with similar transactions | Land, condominiums, etc. |
| Income Capitalization Method | Method to calculate the price by capitalizing the revenue obtained from the subject property | Rental buildings, apartments, etc. |
The real estate appraiser determines the final appraisal value by appropriately combining these methods.
Utilizing our expertise in appraisal, we also provide the following consulting services
In recent years, the field of real estate appraisers has expanded to include the following areas
To become a real estate appraiser, one must pass the real estate appraiser examination administered by the Ministry of Land, Infrastructure, Transport and Tourism and complete practical training. This examination is conducted in two stages: a short-answer type examination and a thesis type examination.
| Examination Category | Examination Subjects | Examination Duration |
|---|---|---|
| Short-Answer Type Examination | Administrative laws and regulations concerning real estate Theory of real estate appraisal |
2 hours each |
| Essay-type examination | Civil law Economics Accounting Theory of real estate appraisal (descriptive) |
2 hours each |
After passing the Short-Answer exam, the Short-Answer exam of the following year and the year after are exempted, and the Thesis exam can be taken directly.
The real estate appraiser examination is considered one of the most difficult national qualifications, and the pass rate is known to be very low.
| Examination Category | Average Pass Rate |
|---|---|
| Short-Answer Type Examination | Approx. 33-36 |
| Essay-type examination | Approximately 14-17 |
| Final Pass Rate | Approximately 5-6%. |
Due to its high level of difficulty, it is generally said that 2,000 to 5,000 hours of study are required to pass the exam. Many students use support from vocational schools to prepare for the exam, and it is considered difficult to pass the exam by self-study.
After passing the essay-type examination, you are required to complete "practical training" in order to register as a real estate appraiser. The practical training can be selected from the following two courses.
| Course | Duration | Characteristics |
|---|---|---|
| 1 year course | 1 year | Short-term intensive |
| 2 Year Course | 2 years | Easy to manage with work |
The practical training includes lectures on real estate appraisal practice, basic exercises, and on-the-job training. Upon completion of the practical training, you can finally register as a real estate appraiser.
According to statistical data from the Ministry of Health, Labor and Welfare, the average annual salary for real estate appraisers is approximately 7.54 million yen, which is high compared to the average annual salary in Japan (approximately 4.6 million yen). It is also possible to increase annual income by further improving experience and expertise.
| Employment Type | Average annual salary | Remarks |
|---|---|---|
| Working real estate appraiser | Approx. 6.5-7.5 million yen | Varies depending on experience |
| Independent real estate appraiser | Approx. 8-15 million yen or more | Depends on the nature of the work and client base |
There are many real estate appraisers who earn more than 10 million yen per year depending on their expertise and client base, especially when they start their own business.
The following are some of the future prospects for real estate appraisers
Changes in the market: While traditional simple appraisal services are on the decline, new demands are emerging, such as real estate securitization and consulting services.
Increased work due to the aging of the population: Inheritance-related valuation demand is expected to increase with the aging of society.
Impact of technology: While AI technology and other developments may automate some of the simple valuation tasks, human experts will continue to be responsible for advanced tasks such as professional judgment, analysis, and consulting.
Responding to internationalization: As global investment increases, there is a growing need for real estate appraisers who are familiar with international valuation standards.
In light of the above, it is unlikely that real estate appraiser qualifications themselves will disappear, but there will continue to be a need for changes in the nature of the work and for increased specialization.
To start your own business as a real estate appraiser, you need to prepare the following
The following points are important for success in starting an independent business.
Initial costs for opening a business depend on the size and location of the office, but in some cases it is possible to open a business from about 1 million yen.
Real Estate Appraisal Standards are uniform standards that real estate appraisers rely on when appraising real estate. They are established by the Ministry of Land, Infrastructure, Transport and Tourism, and real estate appraisers conduct appraisals in accordance with these standards.
Based on these principles, the final appraisal value is determined by appropriately combining the aforementioned "cost method," "case study comparison method," and "capitalization method.
Real estate appraisers are nationally licensed professionals who properly evaluate the economic value of real estate. Their main business is real estate appraisal, but they also provide consulting and other services. To become a licensed appraiser, one must pass a difficult examination and complete practical training, and because of the high level of difficulty, there are only about 9,000 licensed appraisers in Japan, making it a rare qualification.
The average annual income is relatively high at approximately 7.54 million yen, and further increase in income can be expected by starting your own business. In terms of future prospects, while being affected by changes in the real estate market and technological innovations, the need for advanced services such as professional judgment, analysis, and consulting is expected to continue in the future.
It is important for those who wish to become real estate appraisers to develop a long-term study plan and accumulate specialized knowledge and practical experience. In addition, even after obtaining your certification, you should continue to study and keep abreast of market trends in order to become a professional who can respond to the changing real estate market.
A1: There are no qualifications for the real estate appraiser examination, and anyone can take the exam regardless of age or educational background. In 2006, the qualifications were abolished, and anyone can take the exam as long as they pay the exam fee.
A2: Although there is no legal requirement regarding the number of years of work experience, it is generally recommended to have at least three to five years of work experience in order to build up practical knowledge and a client base.
A3: Some simple valuation tasks may be streamlined by AI technology. However, the final value judgment of real estate and advanced consulting require comprehensive judgment of market characteristics, legal systems, and individual circumstances, and will remain the domain of human experts for the time being.
A4: A real estate appraiser evaluates and determines the value of real estate, whereas a real estate transaction specialist is qualified to perform services related to real estate transaction brokerage. There is a big difference in exam difficulty, scope of work, average annual salary, etc. The real estate appraiser is more specialized and has a higher degree of difficulty.
A5: Once you pass the Short-Answer exam, you are exempted from taking the Short-Answer exam for a total of three years from the current year, the following year, and the year after that, and can take the Paper exam. In other words, you must pass the essay exam within 3 years of passing the short answer exam.
Please consult with a real estate appraiser if you want to know the appropriate price for real estate transactions, inheritance, collateral valuation, etc. A real estate appraiser is a specialist who determines the economic value of land and buildings from an impartial and neutral standpoint. Please feel free to contact us.