Quality Vs Quantity-Appraiser Glut
Here's a question for the SRA's on this forum. Does having the SRA designation open more doors for non-lender work such as divorce, estate planning, tax appeal, litigation, etc.? I would think so but I don't appraise houses so I don't know first hand.
The reason I say this is that I've read countless comments of appraisers saying they are going to chase after non-lender work now that the mortgage work has dried up. I would think having an SRA would set you apart from the other appraisers who are chasing this type of work. Any thoughts?
One test of the worth of the AI Designation is to grab your phone book and look up Real Estate Appraisers in the Yellow Pages. The Appraisal Institute will likely be listed with all the designated appraisers noted. I would be interested in feed back if you find this is the case. Some local AI Chapters are actively advertising. Our Montana Chapter advertises in some trade association newsletters. My point is that the AI is out there marketing for their appraisers. Yellow Pages are still used by those looking for trust work, divorce work and other personal type assignments.
I am getting redundant about this subject but this is my take, take it or leave it:
Think of the residential lender market as being fully homogenized. Lenders or their agents were not discerning about credentials above those of mandated licensing or certification. Most lenders did not even distinguish between licensed or certified appraisers.
The world outside residential lending is like regular milk where the cream rises to the top. However, interpreting quality is often relative. Lawyers often associate quality with designations. They like meaty resumes that will intimidate the opposition.
There are proven statistics that indicate that an appraiser with an SRA will make at least 1/3 more income than an appraiser without. There seems to be a disconnect, however, because the SRA appraiser has little extra education over an appraiser with the same license. Some will argue that the SRA is not that well recognized and does not bring a lot of business. Why then, does a person with a SRA designation make more money. The answer is obvious. A person with a SRA believes they are worthy of better assignments and seeks them out. An appraiser with a SRA believes they are worthy of greater fees. The SRA has more an effect on the holder than on potential clients and that is why it pays off.
No matter what happens in January 1909, the appraisal world is more than residential lending and for clients outside of the residential lending community, quality or the perception of quality counts. Let the cream rise to the top.
It is too soon to tell but by January 1, 2009 there may still be too many residential appraisers. With so many appraisers out there, there will be some lenders who will seek out better appraisers. Local banks, for instance, want the best and for that reason may prefer a designated appraiser. The reason to start thinking locally is that the public is slowly learning that loan brokers were getting paid on selling loans with higher interest rates and companies like Countrywide, while they advertised no appraisal fees and no closing costs, were making up the difference in higher interest rates. Consumers are learning a lot about mortgages and are now taking a look at more traditional lenders like the bank where they have their checking and saving account. All these Internet lenders are getting a bad rap but a well deserved one.
There is no down side except the carrying cost of higher membership fees but I think this cost can be quickly recovered.
