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Emerging Appraisal Opportunities

Discussion in 'General Appraisal Discussion' started by rijman, Oct 15, 2010.

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  1. rijman

    rijman Junior Member

    0
    Jan 20, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Does anyone have information on good emerging appraisal opportunities or specialties that anticipate a shortage of appraisers over the next decade?

    BTW- I attended a lunch yesterday where Bob Clark the director of the OREA spoke about how far the number of licensees has dropped in CA, from apx 20k to 14k, with few new appraisers trickling in. With few new appraisers coming in and the average age of licensed appraisers 60+ it stands to reason there will be a shortage of appraisers especially in the non residential appraisal fields. The flow of residential appraisers will continue, but where will the commercial and specialty appraiser's come from?

    It seems to me the residential mortgage appraisal industry is the low ground where the majority of appraisers are located. With the aging of appraisers and the difficulty in getting trained for commercial appraisals, coupled with lack of desire, it appears that commercial appraisal, and other non residential specialties, is the high ground where there may be the most opportunities in the next decade if one can get trained and become qualified.

    Are there good paying appraisal fields where there are a shortage of appraisers?

    Does anyone have resource materials to refer on this topic or information to share?
     
  2. normando

    normando Senior Member

    10
    May 2, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    What are you talking about? I along with my fellow appraisers are so busy right now. We don't have time to listen to an OREA spokesman. There is a shortage of appraisers right now! Lenders are calling me everyday! With the low mortgage rates for the next several months, there is no shortage of work!
     
  3. rijman

    rijman Junior Member

    0
    Jan 20, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    That's funny, I'm swamped too and yet 100 or so of my fellow appraisers were with me at that lunch with Bob Clark. You're swamped today, but what about 6 months, 1 year, 5 years from now? Are there better paying appraisal specialties with growth opportunities out there?
     
  4. normando

    normando Senior Member

    10
    May 2, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    As long as rates are low, we will have work. We are in business so there will be ups and down. People have been talking about automated systems taking over appraisals for years and I've never been worried about that because appraising is labor intensive. If business is slow, many appraisers will go into another field which is good for those appraisers staying in the field. Those who can't stomach the business cycle are not ready to go into appraising for themselves. I'm worried that the increase in business now will encourage more wantabee appraisers. However, if I was starting out now and wanted to go into the appraisal business, I would be hesistant because of the challenging few years working for someone.
     
  5. Lloyd Bonafide

    Lloyd Bonafide Senior Member

    0
    Jan 15, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Did he have other things of interest to say? Thanks in advance ~
     
  6. Walter Kirk

    Walter Kirk Senior Member

    17
    Jun 24, 2003
    Professional Status:
    Licensed Appraiser
    State:
    New Jersey
    Thr big banks and AMC's might love to see an appraiser shortage, then they can claim that since there are so few appraisers their new computer programs or BPO's must be accepted.
     
  7. Lakefront boater

    Lakefront boater Member

    0
    Jul 9, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Michigan
    Interesting the appriasers are swamped in CA, yet Vegas is in rough shape. I've thought for a few years CA will be coming into major financial problems and possibly require a FED bailout to operate the state.

    I guess the economy is so big in CA (something like the 4th largest in the world?) that real estate finance stays pretty active.
     
  8. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    451
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    I think that there were many people who were trained in the last decade who are clueless. They were trained by people who were clueless and then left to set up their own shop and then trained even more clueless "appraisers".

    Many of these "appraisers" think they are good and they think they know what they are doing but are actually clueless. I know this from review and litigation work. They are migrating to litigation and have no business in mortgage appraising yet alone that arena.

    The average age of the licensed/certified residential appraiser has most likely dropped in the last few years considering the "mills" and the easy money of the early 2000's. It is correct that the number of Commercial Appraisers has remained stagnant but there is not yet a shortage at least from what I can tell.

    The number of designated appraisers is dropping. Many do not see the value of an SRA considering it is residential and AMCs don't want quality, designations or experience. These folks can move to litigation to discredit the "appraisers" who are clueless but it is not an easy process.

    Commercial fees are not going up in my area, and are actually going down. The best way to survive is to get referral work and recommendations. Lending work for commercial is very competitive. As long as it remains competitive in the current environment many commercial appraisers will not think about training anyone.

    The biggest threat to the commercial world is the dwindling number of MAI appraisers where the estimated 60-year age you state is high. The bar to get the MAI designation is extremely high, and much harder than it was years ago. I predict that the number of MAI appraisers will continue to decline.


    I think there is a huge opportunity in working for municipalities and assessors as many of the clueless appraisers who advocate for their clients file tax appeals. I will have over $12,000 in municipality/assessor work this year.

    I think it is very important to gain an excellent reputation as an honest appraiser and get referral work. My referral work is now consistently 30% of what I do.

    This work does not have endless stips and bull**** like I got today......"please make fireplace adjustment..." WTF????
     
  9. Mike Boyd

    Mike Boyd Elite Member

    0
    Jan 18, 2002
    Professional Status:
    Retired Appraiser
    State:
    California
    ..............and, I suppose they are paying you all of $175 for each 1004
     
  10. normando

    normando Senior Member

    10
    May 2, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    No, I'm getting double that. There is NO REASON why any appraiser should get paid $175! There is a demand for appraisers, and Lenders and AMCs are willing to pay double that. I'm so busy that I now only want to do appraisals no more than 15 minutes drive from my house. Not only that, last week, I had one appraisal the next day where I just appraised similar floor plan the day before. I used same sketch and comps. Life is great!
     
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