Upcoming Changes To Real Property Appraiser Qualifications

[Delta85]

There have always been appraisers that went straight to commercial. It was nothing unusual when I started.

A CG trainee is obviously going to have to work with a CG supervisor. CGs typically don't target AMC work because they don't do it themselves and it not profitable to split the fee.

Then the CG license will become the new CR. Lenders have to close loans and if candidates stop considering CR as an option then either area CG will be pressured to appraise these properties or lenders will invent and approve new ways to close loans without CR appraisers.

I can easily see the CG license sufferring the same over saturation that the CR license has suffered if all residential work begins flowing through CG and there is a rush to get that license.

 

[Delta85]

It's takes time, effort, and focus.



You're arguing for argument's sake. You're saying nobody will come into the business and there will be a flood of CGs. How exactly does that happen?

Pick a coherent train of thought and stick with it.

Time, effort and focus? How many anecdotes do we need to read on this forum alone from appraisers all across the country that the opportunities are little to none when it comes to non lending work.

What I am saying is that if a 4 year degree is required there will little to no interest in CR work. Over time there will be more work than there are CR. Then the lenders either have to have CG perform the work or approve new ways to close loans without those appraisals. If the CR license becomes extinct and CG license becomes the only way to get a residential appraisal then things will get too busy on that end, the supply of CG will overflow, and the same pattern will follow that has happened to CR.

And if CG resist the work and refuse to train candidates then the role of the appraiser will eventually be eliminated.

 

[Delta85]

There is only an over supply of CG appraisers if the CG appraisers train people. Look at the historical number of CG appraisers and you will see a flat line that will start to decline soon. The phone calls used to be numerous:

"Will you help me get my hours to be a CG?" Nope, but thanks for calling.

I agree. But once a 4 year degree is required to get a CR that license will become extinct. Then lenders will look to CG to get the work done. Even if CG agree to do it there will be a mass shortage and lenders will approve other ways to close these loans. The only other option will be to add more CG, then you get an oversupply eventually, and so on and so on.

 

[Michigan CG]

......The only other option will be to add more CG, then you get an oversupply eventually, and so on and so on.

Why do you always seem to wish for an over supply of CG appraisers and low fees? In order for there to be an over supply someone has to train them. Most off us are not willing to train anyone. The only person I can see myself ever training is one of my kids.

 

[Fritz in NY]

I don't know of any CG under 55 years old. Attrition will have a BIG effect (affect?) on our biz. Most of the VA guys in my market are in the 60's. Yes, you could continue to appraise in your 70's but why would you want to?
My 2nd son is a Senior at RIT, he has offers starting at $ 55,000. a year with bennies etc. No way he could make close to that starting out as an appraiser CR or CG.

 

[The Warrior Monk]

Then the CG license will become the new CR. Lenders have to close loans and if candidates stop considering CR as an option then either area CG will be pressured to appraise these properties or lenders will invent and approve new ways to close loans without CR appraisers.

You keep mentioning lenders. Why? Lenders don't have the chokehold on CGs like they do CRs. One of the reasons I am in the process of obtaining my CG is to have the option to never do a lending assignment again...like some of my peers.

I can easily see the CG license sufferring the same over saturation that the CR license has suffered if all residential work begins flowing through CG and there is a rush to get that license.

I you easily see this happening, you might want to get a new set of glasses.

There will be no rush to upgrade en masse. Yes, certain appraisers, like myself, will be sure to upgrade, but we are a rarity. The time to do it was a few years ago. Anyone starting now has major hurdles to cross and would unlikely be able to get it done before January 2015. The number of upgrades will fall well short of the number of retirees in the next 3 years.

 

[Delta85]

Why do you always seem to wish for an over supply of CG appraisers and low fees? In order for there to be an over supply someone has to train them. Most off us are not willing to train anyone. The only person I can see myself ever training is one of my kids.

I'm not wishing for anything. I'm just looking at the options for the future of the business. Once a 4 year degree requirement is implemented the CR license will be on the endangered species list. I can't see anybody new coming into the biz the way things are unless they are the kids of current appraisers getting into a ready made business. I agree with you, most new CG and CR are gonna be the kids of current CG and CR.

However, once the CR side dies off lenders will still need to close loans. There probably will not be enough CG to fill this void and probably not too many that would want to unless fees went up big time. Once they come to a dead end lenders will advocate for and get approved alternate ways to close loans without appraisers.

If it goes the other way and CG take over the residential side they will need increased numbers to handle the workload which will lead to more and more CG and the same problems of supply and demand will infect the CG side.

Either way my point is that requiring a 4 year degree is a great idea in theory but is fantasy land in reality and would lead to drastic overhauls and changes to the industry over the next 10-20 years.

 

[Delta85]

You keep mentioning lenders. Why? Lenders don't have the chokehold on CGs like they do CRs. One of the reasons I am in the process of obtaining my CG is to have the option to never do a lending assignment again...like some of my peers.

Right now you are right. If the CR license becomes extinct lenders will still need to close loans. If CG refuse to take it on lenders will find alternate ways to close loans. This could eventually effect commercial and other CG work.

If CG take this on and the money is great and the numbers grow to meet demand you don't think the same pattern could unfold that has effected CR?

I'm getting off topic. I'm not focused on CG. I was just commenting on the nuttiness of requiring a 4 year degree to get into appraising. They should just come out and admit that they are eliminating the CR side. That will be the result in about 20 years.

 

[The Warrior Monk]

Time, effort and focus? How many anecdotes do we need to read on this forum alone from appraisers all across the country that the opportunities are little to none when it comes to non lending work.

What has happened post-1997/98 is that appraisers have never had to put in the effort to develop relationship. Getting business meant filling out forms and having work dumped on them because there was too much work and too few appraisers. We are now back to a competitive environment where things like experience, qualifications, etc. matter.

Do the business people, attorneys, judges, accountants, chief appraisers, bank officers, assessors, top real estate agents, other experienced appraisers in your market area know you by name? If not, you haven't even begun the rudimentary steps to establishing an appraisal business. A great many appraisers never bothered to do this. Yes, this takes time and effort.

What I am saying is that if a 4 year degree is required there will little to no interest in CR work. Over time there will be more work than there are CR. Then the lenders either have to have CG perform the work or approve new ways to close loans without those appraisals. If the CR license becomes extinct and CG license becomes the only way to get a residential appraisal then things will get too busy on that end, the supply of CG will overflow, and the same pattern will follow that has happened to CR.

Eventually balance will be achieved, but we are a long, long way from that. There is a gigantic difference between doing a cram session for a month to satisfy appraiser education requirements, and an environment where it takes four years + appraisal education. In fact, the current environment with CGs is dire; we are going to need a significant increase in the number of CG candidates just to replace those who are retiring and/or cutting back.

And if CG resist the work and refuse to train candidates then the role of the appraiser will eventually be eliminated.

It is unreasonable to assume that CGs will stand in unison and not train anyone. As workload increases, CG candidates will be hired.

 

[The Warrior Monk]

I was just commenting on the nuttiness of requiring a 4 year degree to get into appraising.

For the CR credential, I agree it is too much. For all I know it could be a backdoor way of solving the AMC issue, since incoming college grads won't be working with them.

But keep in mind in these discussions that this degree is going to dramatically slow down the number of people coming into this business, not increase, on both the CR and CG credentials. What will increase is the number of CGs relative to CRs.