Fight the Power!

[NC Appraising]

There is no future for residential appraisers unless the fees increased to keep up with costs and inflation which I wouldn't plan on unless I'm missing the bigger picture.

You are right most of the time. Did I just say that out loud? Must have been the kidney stone that I just peed out.

I think you are wrong on this one. It has nothing to do with pay.

The largest lenders need us out. We are in there way. Simple as that. They want a less than a week mortgage, a instant mortgage.

They need a waiver or a avm with a pdc. That is the only way that their plan comes to be.

 

[NC Appraising]

The truth revealed.

13-17 minute mark.

Please teach me how to do 30 appraisals a week. Thanks.

 

[glenn walker]

You are right most of the time. Did I just say that out loud? Must have been the kidney stone that I just peed out.

I think you are wrong on this one. It has nothing to do with pay.

The largest lenders need us out. We are in there way. Simple as that. They want a less than a week mortgage, a instant mortgage.

They need a waiver or a avm with a pdc. That is the only way that their plan comes to be.

Directly or Indirectly the lenders and consumers IE the public are resistant to pay for appraisals and the agencies, banks, and public want a cheaper faster product and Covid-19 proved without doubt that it's the fee paid not their bogus concern about quality or accuracy.

The old timers swore they only did full reports but once offered the same fee for exterior drive byes and deck tops they all jumped on board. The truth was exposed it was always about the fees being paid.

 

[George Hatch]

1. Removal of the College Degree Requirement: The AQB proposes removing all college-course and degree requirements for the Certified Residential and Certified General classifications. This is a major step toward lowering barriers to entry.

I'm opposed to the "removing all college-course" clause of the above. Some of the HS grads really are illiterate. The 2008 criteria required (something like) 15 semester hours in specific courses for the CRs and 21 specific hours for the CGs. I thought that was a reasonable point of balance for what it takes to write an appraisal report. That is, if they're the right courses relative to what we do.

 

[NC Appraising]

1. Removal of the College Degree Requirement: The AQB proposes removing all college-course and degree requirements for the Certified Residential and Certified General classifications. This is a major step toward lowering barriers to entry.

I'm opposed to the "removing all college-course" clause of the above. Some of the HS grads really are illiterate. The 2008 criteria required (something like) 15 semester hours in specific courses for the CRs and 21 specific hours for the CGs. I thought that was a reasonable point of balance for what it takes to write an appraisal report. That is, if they're the right courses relative to what we do.

I agree.

 

[glenn walker]

Glenn, I love you man *BUT* - you are starting to annoy me with these posts. By that logic maybe we should have just stayed home and played video games all our lives.

So I'm adding you to the "Ignore" list for now.

That's okay do what you need to do.

 

[Alsie35]

1. Removal of the College Degree Requirement: The AQB proposes removing all college-course and degree requirements for the Certified Residential and Certified General classifications. This is a major step toward lowering barriers to entry.

I'm opposed to the "removing all college-course" clause of the above. Some of the HS grads really are illiterate. The 2008 criteria required (something like) 15 semester hours in specific courses for the CRs and 21 specific hours for the CGs. I thought that was a reasonable point of balance for what it takes to write an appraisal report. That is, if they're the right courses relative to what we do.

Enter the '300 Appraisal Flying Monkey Circus' that the GSEs and the GSE-captured AMCs are banking on. They don't need to be literate, erudite, or even have a room temperature IQ.

They only have to be taught how to take a bunch of pictures, or how to hit a couple of buttons, without understanding anything as to what they're doing, and *Voila* - Your future appraisal report is complete!

No thinking, analysis, or experience required.

 

[George Hatch]

I also think "lowering requirements" for the sole purpose of increasing the supply is the flip side of "increasing" to limit the supply. Neither of those is an appropriate role of govt.

IIRC the states have the right to add onto the minimums. I might be mistaken but I was under the impression that Puerto Rico had a 4yr requirement for CRs all along.

If the fees aren't sufficient to justify taking on more trainees the govt has no business intervening in that dynamic to effectively supress the fee increases. Let the trend for declining supply take it's course and let the clients compete with each other for the limited number of appraiser hours.

When the appraisers compete, the lenders win
When the lenders compete, the appraisers win

 

[glenn walker]

The theory was as less and less appraisers were in business the increased demand would put higher price pressures on lenders and consumers but that's not happened and that's because the lending and bankers realized it's easier to just use other product's and allow appraisers to retire, quit or die by attrition.

The college degree issues are mute because with or without there's no money to be made running a self employed fee shop.

 

[George Hatch]

They're exercising more of their alternatives. Meanwhile and regardless of the state of the market, it still takes X amount of QE and Y amount of experience in acting in the role to perform appraisals to specs.

IMO "acting in the role" includes more than just technical competency. My read of the work-arounds is that they mostly exclude the ETHICS RULE applications of appraiser conduct that appraisers would normally be exposed to over the course of a couple years of supervised experience with live assignments. My exposure to QE students is that - regardless of how strongly we illustrate the applications - they cannot comprehend the extent to which their objectivity and impartiality is challenged on practically a daily basis. Not before repeatedly experiencing it for themselves. IMO there's no way these "instant appraiser" programs can touch upon that aspect of appraising, whether its in the fee appraisal business or as employed appraisal jobs.

Just because there's no money in the business in 2025 doesn't alter what an appraisal is or the level of technical competency and ethical conduct required to perform it.