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Editor’s Note: This story is republished from the latest print edition of Working RE Magazine, mailing to over 60,000 appraisers nationally. (Am I a WRE subscriber?)
Dispelling Myth of Appraiser Shortage
By Edward Cline, SRA, AI-RRS, GAA, RAA, MNAA
The industry has been abuzz with talk of an appraiser shortage. There is a growing chorus of individuals and organizations, including lenders, AMCs, and now even the Appraiser Qualifications Board (AQB) and the Appraisal Institute (AI), who are putting forth a number of solutions to address this impending shortage.
The proper response to this looming threat to our profession, we are being told, is to lower our standards and reduce the requirements to be an appraiser. The prescriptions range from the rollback of the college degree requirement to become Certified Residential, to a complete elimination of the experience requirements to be a Licensed or Certified Residential appraiser.
Appraisers and other industry stakeholders must carefully analyze these claims. The talk of a shortage ignores the economic factors driving our industry. The industry is currently undesirable for some and it is difficult to bring on trainees because of the downward pressure on fees that we’ve experienced since the Home Valuation Code of Conduct (HVCC) and Dodd-Frank. But consider this: low fees are a symptom of an oversupplied market. As more appraisers get out of the business, either through retirement or business failure, fees will rise and more people will again find the appraisal profession desirable. Are higher fees for appraisers really such a scary prospect?
To ignore the economics involved and simply lower the standards and requirements to become an appraiser is foolish and will only lead to a further cheapening of our profession. There may be a shortage of appraisers willing to work for low fees but there is no shortage of appraisers! Nor should we expect one in the future.
What Shortage?
Those who believe a shortage exists or looms in the near future cite the fact that many in the appraiser profession are aging. These advocates also point to the recent decline in the number of appraisers over the last eight years. However, these numbers are dropping from the pre-recession highs in 2008, a time characterized by excessive competition when many so-called appraisers simply filled out the form and hit the value. From where I am standing, I am glad to see that these appraisers are gone. Good riddance.
The National Appraisal Congress (NAC), a coalition of AMCs and large appraisal firms, recently published a white paper, Removing Barriers to Entering into the Residential Valuation Profession, which argues there is an impending shortage of appraisers. However, if you analyze the numbers they tell a different story. According to the NAC’s own numbers, the number of Certified General appraisers in 2004 was 33,725 and in 2014 it was 38,387 or approximately a 15 percent increase. The number of Certified Residential appraisers in 2004 was 40,726 and in 2014 was 51,240, which represents an increase of over 25 percent. Does this sound like an appraiser shortage?
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I acknowledge that there is a decrease in the overall number of appraisers from 2004 to 2014. However, those numbers include Licensed Appraisers and Broker Appraisers. In my home state of Pennsylvania, the Broker Appraiser category was designed to be grandfathered in and was not intended to be ongoing. The Licensed Residential appraiser is the lowest appraiser credential and has many limitations, including the inability to do FHA appraisals. These simple facts indicate that the categories of active appraisers are increasing instead of decreasing. We have more highly qualified and highly trained appraisers today than we did 10 or 15 years ago.
While it’s true appraisers are getting older, when compared to other professions, appraisers are much less likely to “retire” in the conventional sense. The job is not physically demanding and is something we can do part-time well into our golden years. I know I have no plans on retiring and giving up my Certification. I recently read an article about James McMorries, MNAR, retiring at age of 96. This is a perfect example of how we are fortunate to be able to competently work well into our golden years. As the baby boomers reach retirement in all professions, the average age is increasing. We are not alone in this.
We also continue to have a number of people entering into appraising as a second, third or even fourth career. This increases our average age and can lead to a mischaracterization of appraisers as a “graying” profession that is dying out. However, our profession has a long history of attracting older individuals who take to appraising after working in other corporate fields for decades. Demographically, appraisers have always skewed to the older side of things and the argument that we are “old” and will all retire soon is certainly not new or original.
There is an inherent danger in letting the myth of an appraiser shortage become popularized. The idea that there is a shortage of appraisers emboldens the National Association of Realtors (NAR) to go from state to state and push for real estate agents to do appraisals under the mask of a Broker Price Opinion (BPO). This adversely affects the market demand for residential appraisers as well as commercial, though to a lesser extent. In my home state of Pennsylvania, a real estate agent is not required to have a high school diploma, but NAR seems to think that they are qualified to perform work we are trained and licensed to do.
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Listen to the Market
The strongest argument against the so-called shortage of appraisers comes straight from the market. The market is telling us there is no shortage of appraisers. I understand there are markets in need of more appraisers but have there ever been enough appraisers in these markets? It is not breaking news that it can be difficult to find a qualified appraiser in certain rural markets. We have many clients who simply do not want to compensate us for the additional time it takes to properly complete an appraisal in these rural markets. We have clients who want to pay appraisal fees that are less than what I was receiving 30 years ago.
Will an oversupply entice more appraisers to leave the big city and move to the country? No. What it will do is convince the residential appraisers with the credentials and ability to transfer to commercial appraising. In addition, the people who have the ability to utilize skills in other professions will move on.
There was recently a case in Louisiana where iMortgage, an AMC, was fined by the Louisiana Board for failure to pay C&R fees. iMortgage found an appraiser to perform an appraisal for $250 in a very rural area of the state. iMortgage was paid $465 by the lender and paid the appraiser a mere 54 percent of the full appraisal fee. This does not make the case for a shortage of appraisers. The market is oversupplied if an appraiser is willing to take an assignment in rural Louisiana for $250. From an economic standpoint, there is likely still an oversupply of appraisers in many areas. The fees being paid and accepted by appraisers are, in some cases, less than what appraisers were being paid 10, 20 or even 30 years ago.
Appraisers have recently had a long and successful ride in the real estate world in terms of the abundance of work we have all enjoyed. Interest rates are low and lender requirements are reasonable. However, this will not last forever. We “old timers” know this real estate bliss will end sooner or later. I am not predicting another S&L crisis or another bank bailout, but I am saying there will be a downturn for our services sooner or later.
Trainee Shortage
There is talk of how the number of new trainees is decreasing. The biggest reason for a decrease in the number of people interested in the profession is low fees, despite the college degree or trainee experience requirements. This is a problem that will solve itself. As fees rise, the profession will become more desirable and more people will want to be appraisers and more current appraisers will be willing and able to take on trainees. When it is economically viable to have trainee appraisers, there will again be an abundance of trainees. Yes, I currently have trainees and wonder how many of these doom and gloom people have trainees or prepare appraisals on a daily basis. I am thinking very few.
The specter of an appraiser shortage is being used as an excuse to lower our standards and cheapen our profession. This knee-jerk reaction to an imaginary appraisal shortage will do nothing but decrease the quality of appraisals. This illusion of the extinction of the appraisal profession is beyond shortsighted and is not in the public’s best interest. It is simply a matter of economics. I strongly question what’s behind the motivation to downgrade our profession by lowering the experience and education requirements. The solution, despite what you’ve been told, is certainly not to lower the standards of our profession and water down the requirements to be an appraiser.
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About the Author
Edward Cline, SRA, AI-RRS, GAA, RAA, MNAA is the owner of Ed Cline Appraisals, a busy appraisal office with 10 appraisers and two trainees in Beaver Falls, Pennsylvania. He is a Certified General appraiser in Pennsylvania and Ohio. He performs both residential and commercial appraisals and is a licensed Real Estate Broker and the owner of Premier Property Management Services. Cline is a licensed Pennsylvania contractor and holds a certification in lead abatement. In addition, he is a certified FHA 203k consultant and an active real estate investor.
Send your story submission/idea to the Editor: isaac@orep.org
by Mark
Hi, Any Colorado Appraisers looking to hire a trainee? I’m a 15 year RE Broker, have passed the 75hr course. I have also completed over 12,000 valuations personally, and have contacts with several AMC’s that will send business based upon my experience completing valuations for them, for 11 years.
-by Scott
I agree with many of the comments posted above. The premise of the article is non sense.
-by Raymond
i agree totally with your articles. Bottom line, IMO, is that lending appraisers, in growing numbers, are refusing to work under the AMC business. The fees are too low, the turn times are ridiculis and all the underwriting are unreasonable and most irrelevant.
-by Steve
Our fees are ridiculous. For the proper amount of time it takes to do a report properly, the fees are too low. Back in 1993 we were getting $275-$300 an appraisal with much less time involved. Take these numbers and calculate the cost of living, compounded, an have a good laugh. Retirement? I can’t retire. I did have a good local appraisal company AND I was an exclusive appraisal company for a MAJOR national lender for years until the crash, when the government said I couldn’t do it anymore and I had to close my management company to make room for the AMC’s owned by the failed banks that were bailed out. Appraisers, in my area, are taking assignments for $250… obviously they don’t have a mortgage to pay nor any children to feed. Appraiser’s get little to no respect for doing the governments’ bidding (FNMA). Yes I have been in the business for nearly 25 years and before that I was a RE broker for years. Even the most respected MAI in my area is sick and tired of the low fees for what is expected. Especially when others are working and submitting sub-par work. That’s another thing, sub-par reports are favored by the lenders in order to get paid through a closing. Nothing has changed since HVCC except for lower income for appraisers. I still get calls from lenders asking me to not recognize the downturn in the market 3-6 months prior to the assignment or to over-look deferred maintenance items, and the such, so they can close the loan. It is disgusting. And they want to lower the standards when the current standards are so abused. Nothing has changed, nothing but appraiser’s income.
-by Gary Tang, CCIM, LEED Ap
I know many appraisers in the San Francisco Bay Area still get below $300. I know tract home base fees from lenders and AMC who approached me paid me $650 base. Currently on my desk is a 700-sq. ft. condo, $750 and 2 weeks turnaround, Big Boy lender job. No client out there presses down our fees now; it is only the low fee appraisers committing the non-living wage fees.
Most of the residential appraisers maybe in violation of the USPAP on the competency issue, if you appraise a home without knowing the home is a high performance home such as a passive solar home. You had better get educated before someone report you. Go to Build It Green or the Appraisal Institute for upgrades and be legal.
-by DJ
Here’s a novel idea. Instead of lowering entry requirements, why don’t we focus on retaining all of the appraiser’s who are leaving the industry? We have to ask why they are leaving and focus on retention. If you want new trainees, why don’t big lenders offer to pay their salary while we do the training? Full disclosure of what the appraiser is being paid and what the AMC is being paid would also go a LONG way in reducing rising costs. There is just no way to justify the fees that many, but not all, AMC’s are being paid. Another way to reduce the borrower’s costs is to use ordering portals instead of AMC’s. Any new requirements would not go in to effect for years and most lenders require at least 5 years of experience AFTER you have gone through the many years it takes to become licensed or certified.
-by George Lumpus
we have a HUGE shortage in San Diego for both reasons:
1. Lenders are trying to move to “in-house” appraisers, but now can’t hire apprentices
2. no new apprentices coupled with actual appraisers moving away or leaving the industry.
RE transactions are HIGHLY time-sensitive and this is screwing over the entire industry
-by Oregon CR Appraiser
HOGWASH!! I’m a 25 year Certified Residential in Oregon, one of the hottest markets in the entire country going on 2 years now. As I tell other “dorks” pushing misinformation in articles like this (usually support lowering of licensing standards).. is first of all, most of us already realize we still have some “idiot” licensee’s we’re trying to self-regulate with complaints so they’ll either improve or lose their license. It’s why very few “fee appraisers” believe lowering the bar is a good a solution, other than helping older “licensed” appraisers finally get Certified. The second and final comment why I believe Ed’s entire analysis is flawed is that by HVCC pushing most of the work to AMC’s, we don’t have an open market. Power of job placement has removed what Edward is pretending should be the test. Government subsidies is perfect example, how milk or grains would be no where near their current prices without support (price fixing) or government subsidies.
-by Oregon CR Appraiser
And BTW Ed Kline… Oregon Appraisers TAT has been 8-12 WEEKS nearly 2 years & even AMC’s are bidding up our fee’s in order to get orders placed! Prior to HVCC Oregon had been at $400 for YEARS for 1004 & instead of finally getting a raise HVCC gave AMC’s the power to lower fees to $250-325 and it about killed our profession here in Oregon in the process. I said I’d watch TV before I’d work that cheap & closed my office and did just that.
But now those same bottom feeding AMCs are having to bid fees up just to get them placed, often over $600 for a 1004 lot & block in town and VA is now $785 for Portland area. Sure Oregon is a tough state to appraise, but so are other states and most “Fee Appraisers” realize all this talk about lowering the bar is so AMCs & big lenders don’t have to fret about actually paying a living wage for appraisals again.
And pre-HVCC things would slow during winter, but crummy appraisers could offer to do a report for only $100 and still couldn’t get work, but those same crummy appraisers could get AMC work and that’s wrong and we all know it. A real fee appraiser is happy to see it slow down so they can finally get some personal time. ;)
Here’s what you big players need to know.. please support our living wage fee’s & support all AMC fees be “added to” the appraisal fee. And we don’t trust you now, so we’re not going to expand our offices until we can trust we aren’t going to jerked again. Prior to the anti-fair trade HVCC, us appraisers had great relationships with our Clients, but now not so much. I’m 60 yrs old & HVCC ruined my most productive years to prepare for retirement and its reasons like that why Appraisers seem like we’re so angry.
-by Stuart Groten
The article has no merit. There is definitely a shortage of appraisers. Just using business inquiries I find I am receiving assignment inquiries from AMC’s I have never heard of. They tell me a number of their usual appraisers have left the field. Finding a replacement is a problem. As such they are ranging afield. That is fine with me since I am receiving a volume that I have not had since before the 2008 depression.
-by Mike Ford, AGA, SCRREA, GAA, RAA
Outstanding article Mr. Hagar, but let me get the one area of disagreement out of the way first.
Lumping elimination or reduction of the ADD ON requirement for a college degree with experience elimination is not a rollback of standards. It is conflating of one meaningless, never should have been passed regulation with a separate issue so ridiculous that anyone promoting it should immediately resign from their Board positions! There is nothing in residential real estate appraisal that requires or is improved by a college degree. Nothing. With modern software and computers there is very little in C&I appraisal that would require a degree as well. FIRREA never required or envisioned a college degree. That’s the influence of the AI and its adherents.
I have been a Senior Appraiser for the Treasury Department (IRS-LB&I) and have held a number of other highly responsible professional appraisal positions over the past thirty years. In fact, I was rated in the top 2 1/2% nationally by them…with no degree but equivalent relevant education and experience in accordance with U.S. Civil Service regulations. The operative phrase her is relevant appraisal education AND experience.
Anyway, I agree there is no shortage of experienced appraisers. Frankly there is no shortage of novices either given the restrictions on how we are allowed to use and train them. The only shortage is among appraisers willing to work for peanuts at national franchise appraisal shops, AMCs and grey area “valuation” hucksters such as those that tried to promote the former First American spurious PACE PRO product with its $70 fees!
The solution is incredibly simple. Read ALL the AMC boilerplate requirements for a typical FNMA or FHA transaction appraisal and then come up with both the time study and proposed fee for a fully USPAP compliant product that also meets ALL the client requirements. My finding is 8 to 14 hours generally, depending on complexity and an appropriate fee of $1,000 to $1,500+-. Stop paying us less than a plumber and our numbers will surge overnight.
Stop trying to pay us less than the proposed $15.00 an hour fast food workers and we’ll stop leaving the “job”. Stop micro managing the process and allow us to operate as the professionals we are, and more appraisers will act like it.
Appraisers are human beings. Human beings naturally will either act up to expectations…or down to them.
Mike Ford, V.P./Chairman Nat. Appr. Peer Rev. Comm.; AGA, OPEIU AFL-CIO
-by Scott Williams
Good article with which I agree. It is amazing to me that in an area in which all of deal with exchange markets, so few of us really believe in supply and demand. AMCs are all for supply and demand when there is an oversupply of appraisers and they can get work cheap, but cry the blues when the pendulum swings the other way. Clients have always wanted a ready supply of appraisers with their track suits on just waiting for the phone to ring so they can low bid on the job and get to work immediately. That’s not how markets work or are supposed to work. Until the players stop trying to control and game the market for appraisal services, the present screwed up mess will continue. In our market we were busy for a couple of months, but now things have died back again. No shortage here.
-by AgnesT
If there are 100 appraisers on an AMC panel and a FNMA 1025 is offered at $200
-and there are no takers, then they call it a shortage! But, when $500 is paid a bountiful
number appears. “Data is always independent”. “It is what version you choose to believe”. John Maynard Keyes
by Kyle
In my state of Oklahoma we have 112 trainees to replace over 1000 appraisers. The average appraiser in my state was born in 1947, so all near retirement. Personally I am leaving the business after 18 years(I am 40years old) ,and it is not due to fees or lack of business. It is purely do to the regulations, stipulations and requirements that are just ridiculous. Why are we responsible for our files for over 5 Years? Once the file has been ran through the ringer(collateral underwriter,in house appraisers,lender, amc, etc) then we should not be responsible anymore. We are way overregulated , and all they do is just keep coming up with more and more stipulations and requirements. When does it stop? Do we need to also get a blood sample from the Owners? That sounds far fetched, but not for Fannie mae or some of theses lenders. So you have to have a college education, train for two years, carry over 1 million in insurance, get an average pay of around $60,000(take home) a year, be responsible for all files for at least 5 years, and the list goes on and on. Who in their rite mind is going to get into this business?. So in my opinion this article is far from the truth.
-by Greg Reynolds
As I prepared to write a comment, I was pleased to see that most fellow appraisers agree that this article is complete nonsense. I understand the article is opinion, but the objective data cited in support of the author’s conclusions are hand-picked and not reflective of the actual appraisal environment. Nearly all studies I’ve seen (including the AI study) predicts a 5-10% attrition rate for the foreseeable future. That’s 5-10% PER YEAR! I live in the AMC world and there is DEFINITELY a shortage of appraisers. In addition, and due to the shortage of appraisers, there is MUCH less downward pressure on fees now – in fact, the reverse is true for all markets that I have any experience with. So, then to submit that new folks aren’t entering the field simply because of low fees is just Clintonish propaganda. Fees have increased between 15% to 30% over the past 3 years in most markets – one of the sharpest fee increases I’ve seen in my 30 years of appraising. And to submit that an oversupply will drive residential appraisers into the commercial space is one of the most ludicrous statements I’ve heard in quite some time – obviously this author does not know the additional requirements to go from Residential to Commercial credential. Finally, one of the biggest mistakes the AQB has made in recent years was to impose a 4 year degree as a Certified requirement – THIS DOES NOT MAKE BETTER APPRAISERS. There is NO correlation between education and appraiser quality. What makes better appraisers is better trainers/supervisory appraisers. You want to raise the bar? Raise the requirements to be an appraiser trainer/supervisory appraiser. Now, some might argue that there is already too little incentive to train new appraisers – and I agree. The answer, then, is some kind of increased incentive to be a supervisory appraiser. Want to change the profession for the better? Figure out that problem and then we won’t have to read nonsense like this.
-by Phyllis@closet.com
Why would you believe any study done by the AI? Their whole existence depends upon an abundance of appraisers. Talk about Clintonish propaganda.NO ONE IS GOING INTO APPRAISING BECAUSE from 2007 to 2014 fees were at poverty levels. “Data is always independent and unbiased” its what portions you choose to believe”, John Maynard Keyes.
-by Larry
This a great article and I am in complete agreement with the author. The AMC’s are wanting more appraisers so they can get lower fees and make ridiculous demands like they were in 2008. The reason we don’t have a trainee is none of the lenders will allow them to do the work. The same AMC’s that complain about a shortage do not allow trainees to do their appraisal. If the state would just change the law and demand all lenders and clients allow trainee appraisers. The “problem” would be immediately over.
-by Bill F
dateline Colorado – 2009 there were 5600 Appraisers and 1000 trainees (registered)
-2015 there were almost 2700 Appraisers and no trainees (registered no longer exists). Break down this total to CG’s who won’t/don’t do residential, CR’s that don’t as well as municipal Appraisers (Gov, State, Counties, City, etc) who can’t and your down to around 800-1000 available Appraisers to do the Federally Insured loans in the entire state. Obviously not a shortage…explains why I’m 10+ weeks out and getting high 3 and low 4 figure fees offered from AMC’s for reports. Even higher if I can deliver in less than 30 days.
My Son-in-law would make an excellent Appraiser. He’s logical, detail oriented and methodical. He never went to college so he can’t be one. He doesn’t have the ability to spend $100,000 on an meaningless education that still requires 2500 apprentice hours. Some say the college requirements weed out the ones who don’t belong. Personally, I think this requirement was put in place by lobbyist for higher education…or the banks/AMCs to ultimately get rid of all of us.
by Michael Agnew
Mr. Kline’s article .. Myth of Appraiser Shortage… was scanned but saw no mention of the excessive hours of field work required by the supervising appraiser. This is the primary reason for lack of trainees – financial loss – that I have heard from other appraisers.
-by Stephen Bucknum
Two years ago, I averaged a 2 week turn time from order to submission. One year ago I averaged a 6 week turn time from order to submission. Right now I’m taking appointments for the first week in November, 9 weeks out. The author infers there is no evidence of an Appraiser shortage? Last week I received an email from a national Appraisal Management Company asking me if I would take “any” order “anywhere” I do appraisals for whatever fee and turn time I would accept. That email resulted in three orders where I am going to receive a four figure fee. The entire region where I work, my entire State, and according to the AMC people I talk to my entire three-State corner of the US is in a similar situation.
-by Mike Ford, AGA, SCRREA, GAA, RAA
Let me see if I understand this. You are getting paid ‘reasonable’ fees now and allowed reasonable turn around times so you think there IS a shortage?
When I started appraising in June, 1986 we were quoting a three to four week period before we could even schedule an appointment and about 6 to 8 weeks total turn time barring unforeseen difficulties. Our competition charged $250 for a non complex FNMA SFR appraisal. We charged $275. By 1991 competitor fees were up to $300 and we charged $330. California had about 7,500 appraisers total.
BOTH sets of fees are higher than fees AMCs are trying to get away with paying appraisers today. Try paying ANY other “profession” less than they earned thirty years ago and see what happens to it.
-by George Lumpus
EXACTLY ON POINT Sir.
-by fred vander wal
The Lenders and AMCs might feel there is an appraiser shortage because more and more of us refuse to work for certain lenders and AMCs. Asking if there is oil/gas drilling on a 60×120 city lot is what’s causing a lot of us to say goodbye. Excessive stips, incompetent reviewers all add to the mix. I fired 4 AMCs in August. I refuse to do work for Chase. And Chase uses 20 or more AMCs because they have found out many appraisers simply won’t put up with their excessive stips. They can’t find appraisers anymore. Good Appraisers who argue with Reviewers get blacklisted. I have a wall of “fame”….letters from 5 AMCs that blacklisted me over the past 10 years. Obviously I was doing something right.
-by Mike Ford, AGA, SCRREA, GAA, RAA
AGREE!
-by Scott
OMG! you are so out of touch with reality. Come into the field where I live, in Washington, Colorado, Nevada, California, etc etc. Even my lowly populated mostly rural state of SC has a shortage, trainees have dropped by 90% since 2008. In my rural county, the percentage of working appraisers has dropped over 70% since 2008. I have been so busy since Jan I have turned down half the work offered to me, My fees have doubled. Every client who calls me tells me they cant find appraisers in my county or the surrounding counties. Where is this supply of appraisers you tout. I don’t see it, and honestly I don’t think you really believe it. The fact you stated about the increase in certified appraisers is directly due to the fact during the time around 2004 the educational requirements to be upgraded to Certified Residential was increased and a huge number of licensed appraisers quickly upgraded to avoid boing back to school for a degree. Lets be honest on that fact. You even stated yourself in the article that the total number of appraiser’s is down. You also stated number of Certified General appraisers was up. again this was directly due to educational requirements changing, not because there were more appraisers. Why is it that turn times are up to 8 weeks in many states and areas across the country? Even my own state where I have never had turn times over 2 to 3 days I now have 2 weeks turn time before I will accept an assignment and that is with a much higher fee. Remember in the housing market if there is no housing supply and prices are rising that indicates a shortage, right? So why does the same theory not apply to appraisers. Fees are up, turns times are very high and no new applicants for appraisal trainee licenses, sounds like a shortage to me. I think you may want to do a state by state reevaluation of your facts. thanks.
-by Mike Ford, AGA, SCRREA, GAA, RAA
Scott your logic is correct albeit based on superficial ‘evidence’. Frankly you sound like you are shilling for AMCs. If your fees have doubled it makes me wonder how much you were charging before they did.
Scott, in 1991 when California actually implemented licensing we had 7,500 appraisers. I t was so lucrative that by 2006 we were up to over 25,000. FAR too many! You cited the principle of supply and demand but you overlooked another axiom. “With reasonable profits comes healthy competition. With excessive profits comes ruinous competition.”
Unless you are simply being a contrarian, your argument and fee claims are suspicious. I KNOW SC is not getting double national customary and reasonable fees.
-by Rocky.A@gillop.com
THERE IS NO APPRAISER SHORTAGE! Just a shortage of appraisers who
-will work for peanuts. It’s a shame when your accountant tells you when you hand him your paperwork and he tells you that your paper-boy earned more.
by mdbrown@islc.net
There is no shortage of appraisers. The only shortage is discount appraisers, most of these are out of business. Pay a fair fee and there are plenty appraisers available.
-Mark
by Cobblestone Appraisals, Inc.
In Colorado, we definitely have a shortage of appraisers currently. The tables have turned and I no longer have to put up with rude, disrespectful unprofessional AMC’s who pay me too little. I now have a good client roster and in some cases, they will accept any fee I want, particularly for rural homes or custom high value properties. Its a very good situation and I hope it lasts for a few more years or indefinitely. I have increased my fees in the past 3 years and the work continues to pour in each day.
-by Mike Ford, AGA, SCRREA, GAA, RAA
Sounds like a healthy state of equilibrium rather than shortage.
-by George
This sounds like the ‘fallacy of sample”. Why are you comparing 2004 to 2014? If you compare say, 2009 to 2014, you may get a radically different result. 2004 was the early/middle boom, with many many trainees flooding the market. Most of those would have completed their training by the time the boom crested…2006-2007. So your 2008/2009 numbers should reflect the flood into the market, and your 2010-2014 would probably represent your ‘bust’. Naturally, there is a flow from ‘licensed’ to ‘certified’ due to regulatory changes. The ongoing appraiser ‘bust’ is real… and perhaps the most salient metric is numbers of trainees and conversions of trainees to certified.
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