Falling Out - More Appraisers Quit

[Terrel L. Shields]

Had a meeting & class last Thursday, attended by one of the state board members. He said that there were approx. 800 appraisers in Arkansas when he took office. It is a 6 yr. term. He is in year 4. They are now down to barely 500. The most losses are in the registered (trainee) class...and they anticipate the fall will continue.

Too bad. There are so few to replace us. Average age is about 60.

There will also be new rules in 2015 that will require a bonafide degree. No more of the taking 20 hr. of college courses to qualify.

Give or take 5 years, we will see a huge crunch in appraisers... as the economy recovers and appraisers retire and/or return to room temperature in droves....who takes our place? With the death of a local CG we are pretty much looking at me as the sole CG on this side of the county...We had 3.

This may become a very good business for someone in about 5 - 10 years. The new rules will prevent any rapid build up of appraisers like happened with licensing was initially started...it could easily be name-your-fee. If I am still able to wheel my electric cart around these properties... hmm

 

[Doug DeMars]

I sure hope so Terrel. Lately I'm inclined to let tomorrow worry about tomorrow.

I do believe there are better days ahead for appraisers. Talk regarding the demise of the residential side of the business is overblown IMO...it's basic supply and demand. I've been blessed and have yet to be down to zero assignments over the past 3 years (I've been down to 1 a few times). I'm looking forward to the slow holiday period...I've had more work than I can handle over the past 10 months and need a break.

 

[Blueprint]

There in no question we are facing a horrible slump.
Do the math. This is not rocket science for anyone appraising.

 

[Blueprint]

We are facing a slew of income exactly as Terrell expressed. What a wonderful world to be an appraiser today.

 

[J Grant]

You'll have to become the bionic man, Terrel, and live forever!

In 10 years we will be able to clone ourselves so not to worry.

 

[DTB]

Had a meeting & class last Thursday, attended by one of the state board members. He said that there were approx. 800 appraisers in Arkansas when he took office. It is a 6 yr. term. He is in year 4. They are now down to barely 500. The most losses are in the registered (trainee) class...and they anticipate the fall will continue.

Too bad. There are so few to replace us. Average age is about 60.

There will also be new rules in 2015 that will require a bonafide degree. No more of the taking 20 hr. of college courses to qualify. That can go away with the stroke of a pen, you know that.

Give or take 5 years, we will see a huge crunch in appraisers... as the economy recovers and appraisers retire and/or return to room temperature in droves....who takes our place? Inspectors along with AVMs. With the death of a local CG we are pretty much looking at me as the sole CG on this side of the county...We had 3.

This may become a very good business for someone in about 5 - 10 years. The new rules will prevent any rapid build up of appraisers like happened with licensing was initially started... again changeable with the stroke of a pen it could easily be name-your-fee.Will never happen. If I am still able to wheel my electric cart around these properties... hmm

While I am known as Mr. Sunshine, there's a lot of wishful thinking in the above scenario.

 

[Joyce Potts]

And that's the goal of the higher-ups. In 1999 we had something like 60,000 appraisers nationwide. By 2005 we had apx 150,000. Too many got into the business seeing easy money with most trained to do nothing but the bidding of the lenders.

 

[stangtime]

Like I've told my son, as long as I can walk, see, and more or less drive, I'll be doing this job.

As a side note, and as mentioned on the AF many times, the "appraisal" fee charged to property owners is still tremendously above what the appraiser sees. My brother-in-law asked me last week how much of the appraisal fee do we get. He was charged $550 for an appraisal of a cookie cutter home in a development with plenty of sales all within a mile or two. Easy report. I told him, that appraiser most likely got around $300 +/- for it; or say, 50 to 60 percent.

Cut out the AMCs, they're not needed, and with the reduction of appraisers over the coming years, and a slowly improving economy (the market will stabilize, it always does), decent fees will return.

Dan

 

[Joyce Potts]

Like I've told my son, as long as I can walk, see, and more or less drive, I'll be doing this job.

As a side note, and as mentioned on the AF many times, the "appraisal" fee charged to property owners is still tremendously above what the appraiser sees. My brother-in-law asked me last week how much of the appraisal fee do we get. He was charged $550 for an appraisal of a cookie cutter home in a development with plenty of sales all within a mile or two. Easy report. I told him, that appraiser most likely got around $300 +/- for it; or say, 50 to 60 percent.

Cut out the AMCs, they're not needed, and with the reduction of appraisers over the coming years, and a slowly improving economy (the market will stabilize, it always does), decent fees will return.

Dan

Do away with Dodd-Frank. Do away with AMC's. But doing away with appraiser independence (and with some serious teeth) is unacceptable.

 

[DTB]

Like I've told my son, as long as I can walk, see, and more or less drive, I'll be doing this job.

As a side note, and as mentioned on the AF many times, the "appraisal" fee charged to property owners is still tremendously above what the appraiser sees. My brother-in-law asked me last week how much of the appraisal fee do we get. He was charged $550 for an appraisal of a cookie cutter home in a development with plenty of sales all within a mile or two. Easy report. I told him, that appraiser most likely got around $300 +/- for it; or say, 50 to 60 percent.

Cut out the AMCs, they're not needed, and with the reduction of appraisers over the coming years, and a slowly improving economy (the market will stabilize, it always does), decent fees will return.

Dan

What will the appraisal profit center look like with $550 charged to consumer, $39 AVM and $25 photo-inspection fee?

That! is why it is going in that direction. What you and Terrel are referencing is a reduction in supply, a reduction in demand will keep fees and the industry sliding downward.

Supply and demand is all there is and demand MUST lead supply.