Is this the truth? You can decide for yourself.

[Elliott]

A couple of observations on Cindy and PAREA:

Let the market figure out the demand for appraisers. If there is demand for appraisers and there is not enough supply, the market will figure out a solution. Possibly increase fees so the 'rural' appraiser will decide they can train someone and increase supply. It was working until the "stakeholders" decided there was a shortage (which happens because 'guess what' real estate and mortgage demand has cycles) for reasons that benefit them (like lower fees so AMCs can make more profit).

I know how I got to be an appraiser. I was a real estate salesman, I worked in an assessors office as a residential appraiser for 8-years, where I got experience and education.

Has anyone actually become a PAREA appraiser and 'hung out their shingle' and gotten work? Is the PAREA appraiser suppose to solve the 'rural' appraiser shortage or the 'minority' appraiser shortage? And that gets back to letting the market figure it out, it seems to have worked just fine for the last 30-years until the false narrative of 'shortage' was pushed by AMCs.

Milton Friedman would probably tell you, 'if you artificially increase the supply of appraisers, it will result in appraisers being paid less, and that will then result in there being fewer appraisers, not more, until the demand increases again and fees rise.' Milton famously observed when visiting China that they were using shovels on a road project, not machinery, and was told it was to increase the number of people having jobs, and his response was, "If you want to increase jobs, then they should be using spoons." It would be better to improve the 'productivity' of appraisers than make more appraisers who have less experience and training.

 

[Whtwhale]

I do rural appraisals and I couldn't take on a trainee for the simple reason they couldn't make money. The fees have been suppressed for a battery of reasons, AMCs, oversupply of appraisers etc. If they want to see trainees then get rid of waivers/AVMs. These more simple assignments are the ones new people learn on. The way the industry is going my workload is all complex, acreage, of off-the-wall assignments that I can't give to a trainee even after a year of training.

 

[Carnivore]

I posted over at facebook appraiser forum a comment about how to make more money as an independent appraiser business. I suggested they become multi-licensed. i.e RE Broker ; Licensed Home Inspector etc. I even suggested they get a part time position at a local business. retail store. Number of them viciously attacked me!! Accusing me of suggesting others to not be professional !!! Some others questioned my motive , accusing me of trying to get my competition to quit appraising so that it would result in my business growing. That was not my motive at all. All I was suggesting were ways to break the chains of bondage between you and the AMC's aka Slave Owners! Advertising your appraisal business is more difficult and cost more now. I suggested they give out their professionally designed business card to everyone you meet. Join civic groups like the Lions or other non-profits. It's all about exposure of your business. Again making yourself scarce to the AMC's Slave Owner. Here was something that surprised me. I suggested they continue to work towards getting their CG License. There is no doubt in my mind that this residential appraisal profession need is going to decrease considerably. That did not go over well. I think I bought on more anxiety. It was becoming more apparent to me , that they are thinking about the uncertainty of their future. Fear is a powerful emotion. So lets go back to the beginning of the post. One must think in the future. Why I advocate so much now the need for a college education is because the data is clear. Those who have a college degree lifetime earnings is higher than those who don't have that education. The link is as of 2022

So Res Appraisers should be planning for the future decline of boots on the ground appraiser.

Median household income by education U.S. 2023 | Statista

U.S.

www.statista.com

This quote is from an earlier members post


"Milton Friedman would probably tell you, 'if you artificially increase the supply of appraisers, it will result in appraisers being paid less, and that will then result in there being fewer appraisers, not more, until the demand increases again and fees rise.' Milton famously observed when visiting China that they were using shovels on a road project, not machinery, and was told it was to increase the number of people having jobs, and his response was, "If you want to increase jobs, then they should be using spoons." It would be better to improve the 'productivity' of appraisers than make more appraisers who have less experience and training.

In effect boots on the ground appraisers are Dinosaurs

What is odd is the ASC Count of appraisers has increased. What the ASC Count doesn't say: How many of that number are actively working in the profession!
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
I don't recall when NC Appraisal Board did this, but the board created an in-active licensed status. In effect they copied NC Real Estate Broker inactive status which only cost the RE Agent $40 per year. Re-entry to active status only required taking a USPAP 14 hour class. So NC recognised the old system was not adequate to serve the future needs of the public.

 

[Mark K]

I am in no way disparaging or casting shade on AI. They are a fine organization.




Why has this not been brought up in AI? Simple answer is Power and Control and money.

I agree with your second statement, not the first. They look after themselves and if some appraisers benefit...that's purely coincidental. And if some appraisers get hurt, that's acceptable collateral damage.

 

[Terrel L. Shields]

Is the PAREA appraiser suppose to solve the 'rural' appraiser shortage or the 'minority' appraiser shortage?

Under Clinton's Jobs program -Workforce Investment Act, and the earlier Job Training and Partnership Act, an act introduced by Dan Quayle, the government pushed jobless to retrain under these funded programs. I attended a number of training classes in Little Rock where the instructor was associated with Ark. State Univ. We usually had the same three blacks in the class as well as a few whites who said they were on these programs. The classes qualified under these jobs' programs because of its association with ASU. One guy said he came out of the Army without work and could only find work at a fast-food joint, so he signed up and had taken a number of classes in various fields just to see if he liked it. So, when the state test came time to take, only one of the bunch showed up. They were only taking the class to get the check from the government and probably found a job thru the jobs program in another field. That makes sense. Probably most other professions paid better even then.

The only reason there is a "rural" shortage is lenders only want to pay the same as they would in a cookie cutter subdivision and they want a 3 day turn time. Pay a $1,000 and 10 day turn time, and all that will be covered. Then you can afford to go back twice if comps are not going to cut it. You can take the time to analyze the land value better. etc.

 

[Elliott]

Carnivore said, "In effect boots on the ground appraisers are Dinosaurs."

Appraisers are pretty good at evolving. I remember when the MC became required. I went to my MLS programmers and said, "All the information is available from your data bases, but it requires that I make 5 separate data searches, can you consolidate the searches?" And I'm sure other appraisers asked the same and in a few months most MLSs produced the data to be used in the MC (some even form filled). So what would have been a 45-minute chore became a 15-minute one.

I remember going to a VA appraiser meeting in the 90's and one of the old guys said, "I'm still doing VAs because they accept pencil." Fair to say appraisers have spent considerably in software and technology to improve their productivity.