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RSDS Appraisal Diversity: A Mission to Counter Attrition

by Tony Jones, Senior Editor

From the moment it launched in 2021, RSDS Appraisal Diversity has been on a mission to solve the appraisal industry’s attrition problem. As the company’s name suggests, its core recruitment philosophy is to open doors to the profession for women, people of color and military service members, but it also believes it can create avenues for disenfranchised appraisers as well as those pivoting in their careers.

Since Working RE first wrote about the firm a year ago (see RSDS Appraisal Diversity: Charting a Way Forward in the Fall 2023 issue), the company has continued to flourish. In three years, RSDS now operates in 70 cities, has more than 250 staff appraisers, graduated 75 trainees and has another 30 active trainees in its program.

That success has come despite a prolonged slowdown in the real estate market and runs contrary to the narrative that the future of the appraisal profession is teetering precariously. Working RE recently sat down with Kharon Brown Jr., vice president of recruitment at RSDS, to learn how the appraisal firm’s business model has allowed it to thrive.

Industry Attrition
According to a fact sheet from the Appraisal Institute, there were approximately 70,000 licensed appraisers in 2023, which was about 8,000 less than 2022. Roughly 76 percent have been in the profession for more than 15 years, while 9 percent have entered in the last five years. Moreover, 66 percent of working appraisers were 50 or older in 2023, and 68 percent were male. In all, 77 percent were white.

That’s a snapshot of an aging, white, male-dominated workforce that’s bleeding numbers and drawn the ire of the federal government for its lack of diversity. Historically, most trainees that find their way into real estate appraisal are connected in some way to the appraisers who will train them, such as family members, friends or on referral from a known acquaintance. Based on the numbers, younger reinforcements aren’t entering the industry in large enough quantities to balance the attrition, but in RSDS’s experience, that doesn’t appear to be due to lack of interest.

In concert with recruiting women, people of color and service members as underrepresented groups for entry into the profession, RSDS is also mindful of skewing younger. “Thirty years from now, if things keep going the way that they are, the majority of our appraisers are going to age out of the industry and retire,” says Brown, who is a certified appraiser and graduate of the RSDS training program. “Of our 75 graduates, 73 of them are under the age of 40, which is fantastic in terms of adding longevity to the industry and workforce.”

While RSDS typically has 35 to 40 spaces available for trainees on a year-round basis, it receives inquiries from thousands of applicants each year, notes Brown. Though it doesn’t have capacity to absorb the level of interest it receives, the company has already hit its five-year goal of 70 cities in which it operates and is on pace to reach 500 diverse appraisers by 2026. In the next 12 months, Brown believes RSDS will boast 100 graduates.

Value of Infrastructure
A key differentiator for RSDS is that recruitment and training are core components of its business model vs. solo appraisers who have to commit to training a trainee through fluctuations in the market.

“Unfortunately, there are more hills and valleys for an individual appraiser than a company that is supporting itself with its own infrastructure,” explains Brown. “When you have 300 staff, you have a wheel that’s running that is not as susceptible to the ups and downs of interest rates in the market because we’re able to branch out and touch more. When an individual appraiser no longer has volume, they have to make a business decision about whether or not they can continue to commit to that trainee.”

So, while independent appraisers may be struggling and unable to continue to train new appraisers at the pace they’d like, Brown says RSDS’s departmental structure—including accounting, sales and client-facing administrative support—offers a stable environment that emphasizes the entrepreneurial benefits of appraising, which attracts newcomers and can offer a pathway forward for disenfranchised trainees who wish to continue toward their licensing and certification.

Following graduation, nearly all RSDS trainees become staff appraisers for the firm. The company’s infrastructure allows them to focus on doing appraisals vs. some of the burdensome tasks associated with running a business. “The way that I like to describe it is you get to work as independently as an appraiser without all of the stress or the additional responsibilities that come with being an independent business owner,” says Brown.

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Ideal Candidates
With more than 2,400 years of appraisal experience spread throughout the firm, RSDS views itself as a company of appraisers, built and owned by appraisers, and supported by its internal community of appraisers. With high applicant interest but only so many trainee spots available, who are the ideal candidates the company views as ideal fits for its training program and staff positions? More than any other trait for potential hires, says Brown, is “attitude vs. aptitude.”

“We can teach any appraiser anything that they need to be successful in this industry, and we provide all the background support that an appraiser would need to learn and grow,” he says. “A nuance that I think makes us unique in this space is that we’re willing to grow with you, but you have to come with the right attitude.”

Thus, RSDS looks for applicants who want to be successful long-term by giving as much of themselves into the business as they’re going to get out of the experience. That means people who possess a collaborative, team-player spirit, a positive mindset and a willingness to learn and apply the company’s data-driven and customer-centric methods to conduct the work.

“I think we’ve seen in this industry what a short-term mindset can do to companies, to the appraisers that work for those companies, and to people’s positivity or pessimism about the direction of the industry,” notes Brown. “We’re in it for the long game. We’re in it to succeed together and collaborate.”

SkillBridge Partnership
One recent area of focus for RSDS has been to increase its number of trainees from the U.S. military. In October 2023, the company became a participating business partner in the Department of Defense (DOD) SkillBridge program, which provides active service members access to industry training, apprenticeships and internships during the last 180 days of their service.

Each year, approximately 200,000 members of the U.S. Armed Forces conclude their active duty, according to the federal government, and SkillBridge is designed specifically to help them transition to civilian careers. The SkillBridge website indicates there are more than 4,700 partner organizations offering over 6,000 programs to service members, but RSDS is one of just seven appraisal-related companies offering job training and internships through the program.

RSDS is on track to have about 10 DOD interns in its training program this year—about one-third of its available spots—but Brown says the company’s ultimate goal is to have at least 50 percent of its trainees come through the SkillBridge program. The interest appears to be there, with RSDS having received nearly 100 applications. Thus far, interns have been accepted from the Air Force, Army, Navy and Marines, and Brown is hopeful they will soon bring in trainees from the Coast Guard, Space Force and National Guard.

One reason RSDS believes in the SkillBridge program is due to the mindset and experience military applicants possess. “Service members are in a situation where they’re just prepared to be more committed than typical candidates,” says Brown, who also notes the program is advantageous because it’s low risk for interns since the DOD continues to pay their salaries and benefits while undergoing training. “They’re able to come in relaxed and willing to learn.”

Brown also thinks location has played a role in garnering interest. Service members can peruse the number of industry partners, but they can also filter searches of the SkillBridge database by keyword as well as location. With RSDS training sites in eight cities and growing, applicants can typically find a location that’s either near where they’re stationed or close to where they want to settle once they’re discharged.

Continuation as a SkillBridge partner is subject to an annual renewal and review process. RSDS and other partners must remain in good standing with the DOD, which is partially determined by feedback received from the candidates who go through the training program.

Gateway Mindset
Ultimately, RSDS’s philosophy is to serve as a conduit to those who are interested in real estate appraisal but who have been traditionally blocked from finding access into the profession. “We want to be a gateway into this industry as well as a provider of stability for appraisers already in it,” explains Brown.

As the company continues to grow, more intern and trainee opportunities will open up for those who are underrepresented.

“We’re going to continue to grow to make more spaces, but there’s a lot of work to be done,” says Brown. “There’s a lot of people who want access to this industry that don’t have it. And there aren’t nearly enough providers like RSDS. So, we’re trying to pave the way and break ground, so people can see how important this is.”

About the Author
Tony Jones is Senior Editor of Working RE magazine, published by OREP, a leading provider of E&O insurance for real estate professionals. Based in San Jose, California, he has nearly 30 years of business publishing experience and graduated with a bachelor’s degree in journalism from the University of Arizona. To reach him, email tony@orep.org.

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