PAREA Update

[George Hatch]

I ain't touching that one

 

[Non Sequitur]

I ain't touching that one

And I hate to point it out, but……

Anyway, this is what I’ve been posting about for years. The residential side will be flooded with certified noobs desperate for work. In the not to distant future it will resemble real estate sales with education providers pumping out a constant flow of noobs with no real world skills thinking they can make it big if they can survive through working for peanuts.

 

[George Hatch]

PAREA applies to the CG side, too, so that might enable some CRs to move up.

 

[Non Sequitur]

PAREA applies to the CG side, too, so that might enable some CRs to move up.

Sorta’, residential experience usually can be included but not all. There isn’t a PAREA classroom to certified path for CG in any jurisdiction.

 

[Highlander416]

And I hate to point it out, but……

Anyway, this is what I’ve been posting about for years. The residential side will be flooded with certified noobs desperate for work. In the not to distant future it will resemble real estate sales with education providers pumping out a constant flow of noobs with no real world skills thinking they can make it big if they can survive through working for peanuts.

I actually think PAREA might have worked many years ago. At this point, the PAREA program seems to be too little too late. It appears to me, straight forward appraisals for lending purposes would be the work an appraiser completing the PAREA program would be best suited to do. That is work is largely gone, now falling into the alternative/waiver programs. I don't think many would be ready to jump into many areas of private appraisal work after completing the program. What does that leave. Different types of desktop review work at low pay? I think it is good to have an alt path for someone that really wants to do this job. I just think no matter the path you take, PAREA or traditional, the profession wont be able to absorb many new appraisers either way going forward.

 

[Non Sequitur]

I actually think PAREA might have worked many years ago. At this point, the PAREA program seems to be too little too late. It appears to me, straight forward appraisals for lending purposes would be the work an appraiser completing the PAREA program would be best suited to do. That is work is largely gone, now falling into the alternative/waiver programs. I don't think many would be ready to jump into many areas of private appraisal work after completing the program. What does that leave. Different types of desktop review work at low pay? I think it is good to have an alt path for someone that really wants to do this job. I just think no matter the path you take, PAREA or traditional, the profession wont be able to absorb many new appraisers either way going forward.

I agree that PAREA was designed to feed the AMC & mortgage lending machine. But I disagree with the idea that PAREA will not affect private appraisal work. There will be more than a few PAREA grads who are sharp enough and have the connections to make a dent in private appraisal work when they're either laid off or get tired of the corporate side.

I'm still disappointed that Louisiana adopted PAREA in its full glory. As of now, anyone who wants to be a real estate broker in La. has to work under another broker for 4 years before they can apply. In contrast, starting next year anyone who wants to become a certified appraiser doesn't have to work a single day under a certified appraiser. Let this sink in: The requirements for real estate brokerage in La. are higher than a certified residential real estate appraisal credential.

 

[Joe Flacco]

PAREA is for training the hybrid inspectors and appraisers.

 

[Non Sequitur]

PAREA is for training the hybrid inspectors and appraisers.

Problem is the license/certification is the same as ours. Good luck with demanding they stay in their lane.

 

[Highlander416]

Problem is the license/certification is the same as ours. Good luck with demanding they stay in their lane.

I agree with this point. That said, I still have serious doubts about how this program will work outside of the virtual world. I can't imagine starting my own appraisal business with no supervision after completing a program like this one. It took me several years of full time work to feel confident enough to work without a safety net. Maybe the program is so intense that it can pack several years of experience into several months and away we go. Without completing the program, it is unfair of me to say it cant be done. And, the new appraisers going through the program might pick up things that much faster than I did. My gut feeling is that PAREA will not work as it is currently designed and will need to be modified once the virtual world and real life collide. Now, I can see the scenario where someone finishes this and goes to work for an AMC for a couple years receiving some guidance from a chief appraiser or some kind of mentoring program. But, in the end, the kind of people attracted to this business are usually people trying to escape the corporate culture, not join it. At any rate, PAREA is here and will be interesting to see if it works or will be one of these programs that looks good on paper but does not perform well in real life.

 

[Non Sequitur]

I agree with this point. That said, I still have serious doubts about how this program will work outside of the virtual world. I can't imagine starting my own appraisal business with no supervision after completing a program like this one. It took me several years of full time work to feel confident enough to work without a safety net. Maybe the program is so intense that it can pack several years of experience into several months and away we go. Without completing the program, it is unfair of me to say it cant be done. And, the new appraisers going through the program might pick up things that much faster than I did. My gut feeling is that PAREA will not work as it is currently designed and will need to be modified once the virtual world and real life collide. Now, I can see the scenario where someone finishes this and goes to work for an AMC for a couple years receiving some guidance from a chief appraiser or some kind of mentoring program. But, in the end, the kind of people attracted to this business are usually people trying to escape the corporate culture, not join it. At any rate, PAREA is here and will be interesting to see if it works or will be one of these programs that looks good on paper but does not perform well in real life.

You make more than a few good points.

We definitely live in interesting times. As far as being modified later, I do agree this is a moving goal post given that we're almost 3 decades in and still messing around with licensing qualifications. But to that point, once PAREA starts pumping out noobs there ain't no turning back, they have their certification and will be let lose. While you felt you needed more experience I highly doubt the PAREA courses/program will instill that into their "graduates." Those noobs won't know what they don't know, and this business is all about connections. Don't think that the groups PAREA is supposed to bring in to "diversify" us will be left hanging with nothing to do. They will have work, at least in the beginning.

It is here, but we aren't doing the noobs who will jump into this without any experience any favors by pretending field experience doesn't matter. Classroom to certification is a mistake that the residential side of the industry will live to regret.