3.6 The promises, the predictions, the panic and the fight for the dwindling appraiser dollars

[Carnivore]

"Resistance is futile" s ay eth GSE Borg

 

[George Hatch]

If enough appraisers quit it will probably affect the supply of appraiser hours.

 

[Non Sequitur]

If enough appraisers quit it will probably affect the supply of appraiser hours.

Will it matter considering 80 to 90% of GSE pipeline qualifies for something less than a “traditional” appraisal?

 

[gregb]

delete

 

[Highlander416]

I have not yet completed a UAD 3.6 report, and I’m not certain that I will. That’s not because I believe it will be impossible to adapt—our profession has always adjusted to change. My hesitation is more about what the long-term landscape may look like. There is a possibility that, over time, appraisal work could evolve into a model where the traditional, more routine assignments are reduced, leaving primarily the most complex and challenging cases. If that becomes the norm, the role could begin to resemble other professions where practitioners are consistently operating under high complexity, high scrutiny, and elevated stress. Some professionals thrive in that environment. However, it does raise a broader question: can the income structure and workflow realistically support a model where the majority of assignments require that level of intensity? I don’t have that answer, and I’m keeping an open mind as the rollout continues.

Right now, much of what we are seeing is limited to testing environments and early adopters. Eventually, this will scale to live production across millions of loans. How that transition performs in practice—both operationally and economically—remains to be seen. In a prior profession, we often referenced concepts like Murphy’s Law, the law of unintended consequences, and the idea that “everyone has a plan until they get hit.” Those weren’t cynical perspectives—just reminders that implementation in the real world often reveals things that planning alone cannot. I’ve made a genuine effort to stay neutral and objective about these changes. While I haven’t completed a 3.6 report yet, I remain open to learning how it works in practice. At the same time, if the future of lending appraisals becomes centered primarily on complex, high-intensity assignments, I may choose to step away from that segment of the profession.

That would be a personal decision—based on stage of life, family priorities, and a desire for a more balanced pace—not a criticism of the direction itself.

 

[Sandra Koutsopoulos]

In my area, the cookie-cutter appraisals have been gone for years. It makes my heart go pitter-patter when I get a SFR on a normal subdivision size lot under 2500 sf. EZ, PZ, 123-Z.
This week I've had a 600 sf 1 BR with no smaller bracketing comps within 2 miles; a vacant/vandalized rural house pre-foreclosure with a series of 'special use' buildings, apparently a previous pot-grow on 2.5 acres; one "normal" house; a condo being foreclosed on by the HOA; a new construction monster; a huge 3 story SFR with elevators in a guard-gated community; a refi for property with lake frontage & pier; a rural mfg house on acreage; and one "normal" refi.
'Back in the day', I'd get some Long Beach, 815 sf SFR Ranch, 1 car garage.... and find all my comps within 1/2 mile! Yes, those were the happy times.

 

[Carnivore]

I found this using AI just a thought and trying to be helpful I am not trying to get you to quit Im already retired

Post for an Appraiser Forum: HUD Inspection as a Career Pivot​

A lot of appraisers are looking for exit paths right now, and one option that doesn’t get talked about enough is HUD inspection work. It’s actually one of the most natural transitions for someone with a residential appraisal background

Did you notice what it said above? A lot of appraisers are looking for exit paths right now

So maybe it is time to hold steady as the over supply begins to shrink then again consider this
A lot of appraisers are looking for stable alternatives right now, and one option that fits surprisingly well is HUD property inspection work — especially the roles that are federal positions with full benefits

 

[Sandra Koutsopoulos]

I found this using AI just a thought and trying to be helpful I am not trying to get you to quit Im already retired

Post for an Appraiser Forum: HUD Inspection as a Career Pivot​

A lot of appraisers are looking for exit paths right now, and one option that doesn’t get talked about enough is HUD inspection work. It’s actually one of the most natural transitions for someone with a residential appraisal background

Did you notice what it said above? A lot of appraisers are looking for exit paths right now

So maybe it is time to hold steady as the over supply begins to shrink then again consider this
A lot of appraisers are looking for stable alternatives right now, and one option that fits surprisingly well is HUD property inspection work — especially the roles that are federal positions with full benefits

That's an interesting post. I'm wondering how much expertise the HUD inspectors are expected to have.
Reason is, 2 weeks ago I did an pre-F/C appraisal on mfg house, and was given the report from the HUD inspector, who might also be the listing agent... I'm not sure. Anyhow, their PCR Property Condition Report sheet showed everything OK except for the missing water heater. Roof-OK. Siding-OK. Structure-OK. Kitchen, baths cabinetry, floors etc, all OK. ...really???...

As I approached the house I saw missing and raised shingles on the roof. NOT OK.
The stairs, ramp to back porch were so rotted, there wasn't a smooth or intact surface anywhere on it. Structurally unsound. NOT OK.
All the interior flooring was bad. Carpeted areas had fatal stains & dirt; the vinyl flooring was wrinkled up, missing or had holes in it a man could drop through into the crawlspace underneath. NOT OK.
Kitchen single arm faucet was missing the handle. NOT OK.
ALL the cabinetry was damaged and/or had missing doors and drawers. NOT OK.
The partially covered outlets had soot? where there had been an electrical fire in the box. NOT OK.
The exterior was no better: the siding had become smooshed in and paper thin where termites had eaten away the board-&-battan-look plywood exterior EVERYWHERE above the skirting. NOT OK.
I was surprised that even a foot-long chunk of wood laying at the opening of the crawlspace, which was absolutely riddled with termite grooves had not clued the "HUD Inspector" in that there were problems there.

How the heck did this inspector come to his written conclusions that everything was OK except for the missing HWH? Boggles the mind. What's the criteria to become a HUD Inspector? From what I have seen, the barrier must be extremely low.

 

[Carnivore]

So I ask AI how did it know res appraisers were looking for employment in a related industry below is the reply


Appraiser Facebook groups have constant discussions about exit strategies.

• The average age of appraisers is high, so many are naturally thinking about second careers.
• The market slowdown pushed a lot of people to look for stability. Well that makes sense

HUD inspector pay

Most HUD inspection jobs pay between $50,000 and $60,000 per year nationally, with some local housing authorities paying hourly rates in the $19–$27/hr range depending on the role and location


So you ain't getting rich Some money is better than no money. Plus you get rid of all the fee's and cost of being an independent fee appraiser

 

[Surf Cat]

How the heck did this inspector come to his written conclusions that everything was OK except for the missing HWH? Boggles the mind. What's the criteria to become a HUD Inspector? From what I have seen, the barrier must be extremely low.

Maybe got a couple Benjamins slid to them under the table? Double Bubble....