Falling Out - More Appraisers Quit

[J Grant]

My take on this for whatever it is worth, is that the appraisal profession could benefit from additional license levels, or specialities that have accompnaying license clearance.

1) A modified CG license that would allow res appraisers to complete additional training in order to do limited commercial work. The res appraisrers would need to have a certain number of years appraising, take additional course work, pass a tenst, etc. They could be allowed to complete under a certain $ amount, or limited complexity commercial assignments, such as smaller # of unit number hotels/motels, farms under a certain acreage,, small apartment buildings/renatl buildings under 20 uints.

This would expand the training and knowledge of the residential appraisers to a certain threshold, after which a full CG license is needed.

2) Reviewing should have its own license and training/education/qualification and exams . Right now, any appraiser can do it and many lack the experience and their own work would not hold up to review.

These additional license levels would allow for more specializaion and accompanying compensation within the field.

 

[Dale Smalley]

The shortage is a long way off. But the regulators could just as easily relax the rules to become an appraiser. Probally after they stop ordering appraisals all together.

 

[George Hatch]

By licensure the scope of practice for commercial appraisers includes *everything* else in addition to residential properties. We're not talking about adding just one or two additional property types to the appraiser's competency.

By property type there's almost no such thing as "limited commercial" properties. Once you step outside of appraising fee simple residential property interests these situations can all grow extra legs and arms in no time flat. That doesn't just apply to the subject properties, either; it also applies to all the comps.

Sure, there are property types that usually get bought and sold by owner-users, but there are enough exceptions to those to require a reasonable understanding of yield capitalization, lease encumbrances and other complicating factors.

I think a breakdown involving apartment properties could work so long as it was limited to fee simple interests in properties that don't include non-residential uses onsite. That wouldn't necessarily lead to a competency for appraising other types of non-res use properties, though.

 

[George Hatch]

I'm not worried about it.

Personally, I think the market solve the problem on its own. Appraisers aren't taking on trainees because the fee structure doesn't justify the time and effort to do it. Client groups aren't currently accepting "did not inspect" appraisal reports because the oversupply of appraiser talent gives them the option to decline.

A real shortage of appraisers will first translate into significantly higher fees as clients compete with each other; and then to reduced expectations for supervisory "did inspect" and report content. That's what happens during a bull run. The past predicts the future.

 

[DTB]

I'm not worried about it.

Personally, I think the market solve the problem on its own. Appraisers aren't taking on trainees because the fee structure doesn't justify the time and effort to do it. Client groups aren't currently accepting "did not inspect" appraisal reports because the oversupply of appraiser talent gives them the option to decline.

A real shortage of appraisers will first translate into significantly higher fees as clients compete with each other; and then to reduced expectations for supervisory "did inspect" and report content. That's what happens during a bull run. The past predicts the future.

What were fees before the bubble? During the bubble and now?

 

[The Warrior Monk]

The shortage is a long way off.

It depends. For the residential appraiser in a very oversupplied market, this is true. When it comes to CGs, though, the shortage is already starting to become acute.

But the regulators could just as easily relax the rules to become an appraiser. Probally after they stop ordering appraisals all together.

It's true they could change the regulations. But it adds risk, which means higher interest rates. The government can't afford to continue to buy down the additional risk forever. What's worth more, pay a few hundred extra for a highly competent appraiser, or a higher rate for 30 years?

 

[Pine Tree]

I've long held that to qualify at the CG level.. which indicates competency in all property types, CG's should demonstrate residential property competency. Otherwise.. I say re-scope the license level. T

 

[Michigan CG]

1) A modified CG license that would allow res appraisers to complete additional training in order to do limited commercial work. The res appraisrers would need to have a certain number of years appraising, take additional course work, pass a tenst, etc. They could be allowed to complete under a certain $ amount, or limited complexity commercial assignments, such as smaller # of unit number hotels/motels, farms under a certain acreage,, small apartment buildings/renatl buildings under 20 uints.....

Won't work. Either you know the theories and practices or you don't.

 

[The Warrior Monk]

I've long held that to qualify at the CG level.. which indicates competency in all property types, CG's should demonstrate residential property competency. Otherwise.. I say re-scope the license level. T

This is completely unreasonable. Using this line of reasoning, CGs would also have to display competency in appraising nuclear power plants, national parks, skyscrapers, etc.

Breaking it down simply, it has to do with methodology. The CG has learned the concepts behind the methodology necessary to appraise all property types, whereas the residential appraiser has not.

 

[Mile High Trout]

Yearly figures will be here soon.... Can't wait!

I'm not quitting, but on the other hand, I'm not full timing it either. At 35, I've got plenty of time to watch them come and go.