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Certified vs. Licensed

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JTip

Thread Starter
Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
A post in another thread has brought up some questions in my mind.

I know the limitations of being licensed compared to certified by looking at other states definitions, Pennsylvania has no license designation, and wondered why someone would choose one over the other.

Besides the value cap, why is there even a licensed designation? Is there a reason not to become certified and stay licensed? :shrug: I think it would be like having a RE sales license for 10 years, you have the experience, take the test and get your brokers/associate brokers license. You can still sell and future options are available. Why not go for the top designation?

Discuss. ( I like how teachers say that in class):laugh:

j
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
J ... originally I think many states instituted licenses as a means of grandfathering in those that did not have all the requirements to become certified. In many instances as their work load did not suffer they saw no reason to become certified. Face it some people are quite lazy and have no motivation to go beyond that which they have now.
Its a sad fact about life.

I would suspect many of those licensed will soon see without a certification and experience their work erode even more than it has now as I think certification will be a requirement for many lenders and secondary market participants.

Doubtful many will get by on good looks alone any longer.
 
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Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
A post in another thread has brought up some questions in my mind.

I know the limitations of being licensed compared to certified by looking at other states definitions, Pennsylvania has no license designation, and wondered why someone would choose one over the other.

Besides the value cap, why is there even a licensed designation? Is there a reason not to become certified and stay licensed? :shrug: I think it would be like having a RE sales license for 10 years, you have the experience, take the test and get your brokers/associate brokers license. You can still sell and future options are available. Why not go for the top designation?

Discuss. ( I like how teachers say that in class):laugh:

j
For appraisers, there is a definite reason to become certified, if lenders actually follow FIRREA. It not only involves the limitation of $1 million transaction value but more seriously and critically "complex" appraisals.

Complex can be market conditions, property rights other than fee simple, highest and best use issues, location, unique physical features, over improvement or under improvement, and other types of appraisal assignments that are substantially different SOW other than market value for a mortgage.

However, lenders are use to the Skippy type appraisals where complex issues are over looked until the loan goes into default or their examiners tell them they are deficient on the loan valuation for a complex appraisal.
 

JTip

Thread Starter
Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
but more seriously and critically "complex" appraisals.

Complex can be market conditions, property rights other than fee simple, highest and best use issues, location, unique physical features, over improvement or under improvement, and other types of appraisal assignments that are substantially different SOW other than market value for a mortgage.

Ah...interesting. Thank you.
 

Michigander

Senior Member
Joined
Oct 23, 2003
Professional Status
Certified Residential Appraiser
State
Michigan
I am in Michigan. In Michigan we have had licensed appraisers since 1991 and certified residential was added in either in 2000 or 2001. Many people gaining their license after that time skipped straight to certified as it was pretty easy to put in the minimal amount of extra course and logged hours, while those who had been appraising for some time didn't upgrade (many still are not upgraded) until recently. I think in MI, only 20% or so of the residential appraisers are certified at this point. It is increasing significantly now due to the changes and everyone trying to upgrade under the old statutes, but by and large MI still is much more heavy in licensed versus certified.

It is so state dependent. Not all have treated the initial move over the same.
 

Kevin Keck

Junior Member
Joined
Jun 2, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
J ... originally I think many states instituted licenses as a means of grandfathering in those that did not have all the requirements to become certified. In many instances as their work load did not suffer they saw no reason to become certified. Face it some people are quite lazy and have no motivation to go beyond that which they have now.
Its a sad fact about life.

I would suspect many of those licensed will soon see without a certification and experience their work erode even more than it has now as I think certification will be a requirement for many lenders and secondary market participants.

Doubtful many will get by on good looks alone any longer.

True, I am lazy and unmotivated but I take exception with the good looks remark. I am still good looking. Just ask my mom.
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
Ceritfied wannabe

I have passed both the CR and CG exams, and taken all the necessary education, all I lack is the experience.

Will I ever get it? Who knows, but I am poised to further my qualifications if the chance comes. Heck, I even have a commercial appraiser that will work with me on a fee split basis. I am just waiting for the opportunity.

I have always wanted to take this thing as far as I can take it. I just don't know how far that will be or how long it will take.

So, just b/c you are licensed doesn't mean you plan to stay that way forever.
 

Mary Tiernan

Senior Member
Joined
Dec 16, 2003
Professional Status
Retired Appraiser
State
Michigan
Although some may refer to my way of thinking as lazy, I consider myself content as a State Licensed Appraiser.

Here in Michigan we don't have $1M houses on every corner, not even on some corners. We may not even have typical $100,000 houses on every corner as a result of the great depression we are in. (And yes, we are in a depression here in my opinion. Everybody is depressed LOL.) Walmart had tons of open parking spaces today, and I think that is a bad omen.

I am a rural appraiser, and was trained as a rural appraiser. What some of you city slickers might consider "complex" is run of the mill for me. It is not easy, and the dialogue included in each report gets longer every day, but it is my market and I like it.

When an order comes to me which will make my overworked mind boggle, I prefer to send it back to the client and suggest a certified with experience - but, we have a really mixed housing market, and I can pretty surely state that some of the properties I have recommended a Certified with experience probably does not have the experience in this type of property because it is soooooooo unique.

So, call me lazy. I don't really care. I am happy with my license level and content to stay here until I am told upgrade or lose it, but, if our four tier license structure is phased out (limited, state licensed, certified and general) to a three tier system, I don't think they can take away that which was earned, they would have to auto-promote.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
The difference? You get an R after your name as opposed to an L

I think the Licensed appraisers are going to disappear...but so may most appraisers.
 
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