- Joined
- Feb 14, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Louisiana
The problem I have with most of this discussion (especially the ASC Fall Roundtable) is the bias issue is predetermined by people who have zero appraisal methodology knowledge and the predetermined conclusions aren't challenged by anyone in our industry because they don't want to be run over by the politics of it (can't say I blame them).
Not long ago the hot topic was gentrification, minorities were being priced out of majority minority neighborhoods. Now the complaint is values aren't high enough in those neighborhoods. None of this stuff happens in a vacuum. Nearly all buyers require financing and they buy what they can afford. If there isn't a corresponding raise in wages we'll be back to the gentrification issues all over again. In short, if minorities are priced out of minority neighborhoods due to changes in appraisal methodology how is that helping?
I have no doubt we're in for big change sooner than later. And I called this from the beginning: The first shot in the war to change how residential appraisers value property will be through PAREA. Several national AMCs are developing their PAREA education and actively recruiting mentors. PAREA was mentioned in the *ASC roundtable discussion, mentioned in several other similar discussions, mentioned in several chief appraiser blog posts, etc. This will be a win-win for AMCs. Cloaked in a social justice costume they will be able to staff with newly minted PAREA drones who know only what they were trained to know. Jump neighborhoods for value, base value on cost, done - whatever it takes to satisfy the issue de-jure.
In all honesty, I'm not sure we can get out of the way of this train. With AMCs dominating the market via market share, the only way we can slow it down is to rally for a VA style system. In that way staff appraisers will have to wait for orders like indie appraisers. That will all but put a stop to staff since AMCs will not be able to capture lender clients and assign multiple reports a day to their staff. As much as I would love to see this, it isn't going to happen. To many billion dollar companies hired people for influence, we're all but cooked.
*It was mentioned that 12 states have adopted PAREA (I'm not sure if that's accurate), but here's the big kicker - the idea of federal standards or forcing states to adopt PAREA was discussed. Given the big sticks in the conversation I wouldn't dismiss the idea and how serious they are in their belief that appraiser demographics and methodology must be changed, via mandates if necessary.
Not long ago the hot topic was gentrification, minorities were being priced out of majority minority neighborhoods. Now the complaint is values aren't high enough in those neighborhoods. None of this stuff happens in a vacuum. Nearly all buyers require financing and they buy what they can afford. If there isn't a corresponding raise in wages we'll be back to the gentrification issues all over again. In short, if minorities are priced out of minority neighborhoods due to changes in appraisal methodology how is that helping?
I have no doubt we're in for big change sooner than later. And I called this from the beginning: The first shot in the war to change how residential appraisers value property will be through PAREA. Several national AMCs are developing their PAREA education and actively recruiting mentors. PAREA was mentioned in the *ASC roundtable discussion, mentioned in several other similar discussions, mentioned in several chief appraiser blog posts, etc. This will be a win-win for AMCs. Cloaked in a social justice costume they will be able to staff with newly minted PAREA drones who know only what they were trained to know. Jump neighborhoods for value, base value on cost, done - whatever it takes to satisfy the issue de-jure.
In all honesty, I'm not sure we can get out of the way of this train. With AMCs dominating the market via market share, the only way we can slow it down is to rally for a VA style system. In that way staff appraisers will have to wait for orders like indie appraisers. That will all but put a stop to staff since AMCs will not be able to capture lender clients and assign multiple reports a day to their staff. As much as I would love to see this, it isn't going to happen. To many billion dollar companies hired people for influence, we're all but cooked.
*It was mentioned that 12 states have adopted PAREA (I'm not sure if that's accurate), but here's the big kicker - the idea of federal standards or forcing states to adopt PAREA was discussed. Given the big sticks in the conversation I wouldn't dismiss the idea and how serious they are in their belief that appraiser demographics and methodology must be changed, via mandates if necessary.
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