AQB Update On Proposed Changes To Appraiser Qualifications

[The Warrior Monk]

the absolute minimum time frame is 2 years to obtain a license.

Straight from the AQB for a Licensed Residential Real Property Appraiser:

IV. Experience
Two thousand (2,000) hours of experience are required to be obtained in no fewer than 12 months.

If that was the case why are so many complaining about low fees daily on here? how many posts refer to fees being the same for 5-20 years? how long has the degree requirement been in effect and why haven't fees gone up to support that theory?

The effect of the college-degree requirement will take years to realize. It was implemented in a very oversupplied market. Previously, people would work for peanuts or pay to train. Anyone coming into the market now expects the compensation level to be at least an average wage for a four-year college grad. That's one of the reasons AMCs are making noise. People coming into the business aren't willing to work for a split fee of a split fee. The effect will be magnified over time as people retire.

there are also MANY bad appraisers who have a college degree. it's basic human nature, and at this point all assumptions since no one can provide proof of their statement.

There are also many bad doctors, accountants, attorneys, etc. that are also unethical, yet nobody is arguing that degree requirements should be tossed out for them. What the college degree requirement does it cut out the opportunists that are here only to make a quick buck, and don't care about appraising or improving themselves.

 

[TRESinc]

Straight from the AQB for a Licensed Residential Real Property Appraiser:

IV. Experience
Two thousand (2,000) hours of experience are required to be obtained in no fewer than 12 months.

i guess we have higher standards in ohio.


What do I need before applying to become an Ohio Registered Appraiser Assistant?
Education:
 Fair Housing Course
 Appraiser Supervisor-Trainee Course
 15 Hours of USPAP
 30 Hours of Basic Appraisal Procedures
 30 Hours of Basic Appraisal Principles
Experience:
 None
I am an Ohio Registered Appraiser Assistant wanting to upgrade to:
Licensed Residential Appraiser
 Associate Degree or higher OR in lieu of required degree, thirty (30) semester credit hours of college-level education with a minimum of three (3) semester hours per course, from an accredited college, junior college, community college, or university. Additional Education:
 15 Hours of Residential Market Analysis and Highest and Best Use
 15 Hours of Residential Appraiser Site Valuation and Cost Approach
 30 Hours of Residential Sales Comparison and Income Approach
 15 Hours of Residential Report Writing and Case Studies
Experience:
 2,000 experience hours in no less than 24 months preceding application. A supervisory appraiser shall be in good standing in the jurisdiction in which the registrant practices for a period of at least three years. A supervisory appraiser shall not have been subject to any disciplinary action within any jurisdiction within the last three years that affects the supervisory appraiser's legal eligibility to engage in appraisal practice. A supervisory appraiser subject to a disciplinary action would not be considered to be in good standing until three years after the successful completion or termination of the sanction imposed against the supervisory
appraiser. A supervisory appraiser shall have been a state certified appraiser for a minimum of three years prior to being eligible to become a supervisory appraiser. Up to 50% of the experience hours may be obtained for hours worked on non-client appraisals, provided the experience is obtained as part of a case study or practicum course that has been AQB approved, or a state-approved mentorship program.

 

[The Warrior Monk]

if that was the case why are so many complaining about low fees daily on here? how many posts refer to fees being the same for 5-20 years?

BTW, there are many not complaining about here regarding fees daily. I, and many others, are also charging much higher fees than AMCs are paying appraisers, and much higher fees than we were a decade ago.

If that weren't the case, I'd find something else to do. After all, my college degree is marketable.

 

[TRESinc]

BTW, there are many not complaining about here regarding fees daily.

have you been reading the GB&U forum? there are at lest 5-7 threads on the main page talking about low fees.

 

[The Warrior Monk]

i guess we have higher standards in ohio.

When referring to credentials, I refer to the AQB. State can impose additional requirements.

Additionally, states only had to adopt the minimum requirements for CRs and CGs. The minimum requirements for trainees and the Licensed credential did not have to be adopted by states. That was an issue in NY (recently changed) because Licensed credential holders could supervise.

 

[Meandering]

If that weren't the case, I'd find something else to do. After all, my college degree is marketable.

And look how many CRs have college degrees, for the lowest certification and are not CGs. Seems college has made too many of them under achievers, because they could wave their degree around at a time when no degree was required, so they were the "big" toads in the pond, where they still sit, dictating how much better they are with their degree, yet only a CR.




Lots of puffery and blow hard noise.

 

[hastalavista]

if that was the case why are so many complaining about low fees daily on here? how many posts refer to fees being the same for 5-20 years? how long has the degree requirement been in effect and why haven't fees gone up to support that theory?

Hey, Tres-

I agree with Timd's response. Also, a more important (IMO) factor of fees is supply and demand.
In the COW states, fees have gone up regardless of a college degree. In other states, not so much.
As the supply of appraisers dwindle, and assuming no significant shifts in demand, fees would be expected to go up.
A college degree requirement is an entry-barrier to the profession (and, as I said, I generally don't like unnecessary entry barriers). So, the degree-requirement should reduce the potential pool of entrants; that will reduce the potential supply and as the supply dwindles, fees will go up and (in theory) reach a point where the college degree requirement is financially feasible for an entrant to obtain. It will still be an entry-barrier but it won't be financially unfeasible to obtain when measured against the income potential of the appraiser.

But, like I said, that isn't my argument (i.e., have the degree requirement to raise fees); it is just a consequence of my argument (keep the degree requirement because its merits on our profession as a whole outweigh the counter-argument of the necessity of the degree for a specific individual).

I definitely like Rex's idea of having an alternative path for existing appraisers that would be weighted on experience; the alternative path would be in lieu of the degree. There may be some course requirements (and not necessarily college) but the emphasis is on experience and a demonstration of competence.
This alternative would benefit a single class of existing appraisers: Licensed residential appraisers who want to move up to Certified residential appraiser. I think a practicing, licensed appraiser who demonstrates sufficient competence and has the experience shouldn't need a college degree to move up to certified residential. I'm sure I'm not alone in that opinion.

 

[TRESinc]

When referring to credentials, I refer to the AQB. State can impose additional requirements.

Additionally, states only had to adopt the minimum requirements for CRs and CGs. The minimum requirements for trainees and the Licensed credential did not have to be adopted by states. That was an issue in NY (recently changed) because Licensed credential holders could supervise.

since i am licensed and only work in ohio that is all that i am familiar with, and refer too. chalk it up to locational differences.

 

[The Warrior Monk]

have you been reading the GB&U forum? there are at lest 5-7 threads on the main page talking about low fees.

Sure. I am aware of all this.

There are many factors in play.

• Surveys taken that tend to rely heavily on residential appraisers working with AMCs indicate that have the lowest percent of 4-year degrees relative to other surveys (random samples of the appraiser population, etc.). Something like only 50% of the aforementioned group have their college degrees, while a random sample of the overall population is 70%+. Given that the later survey includes the former group, excluding the former group would result in an even higher percentage of appraisers having degrees.
• Not every appraiser is a good businessperson (true for any profession).
• People don't like change, and many won't change even if it adversely affects them financially (true of any profession).

Examining who is complaining. Those working with AMCs, versus those not working with AMCs.

 

[The Warrior Monk]

since i am licensed and only work in ohio that is all that i am familiar with, and refer too. chalk it up to locational differences.

Local differences give a local view.

AQB minimums give a better view of what's going on in the overall population of appraisers.

The "one-year in the business and then supervising" that was allowed in the past did not work out well and was thus changed. IMHO, the college degree requirement was another backlash against very, very ill trained and uninformed appraisers.