Just curious about trainees

[Bama Bayou]

An AVM can be an excellent tool when used by an appraiser IN THE FIELD who understands how it works along with its strengths and weaknesses.

 

[Marcia Langley]

JTRock,

The way the appraisal trainee system is set up is that it is the qualified appraisers' choice whether or not to take on a trainee. The qualified appraiser needs some sort of incentive to even consider doing it.

The first and most basic incentive is assignment volume. There is no reason for a qualified appraiser to take on a trainee if they don't have enough work for another person. And there is no benefit to a trainee to be taken on by an appraiser that doesn't have work for them.

When the appraisers are all busy, more of them take on trainees. When everyone is slow, they let trainees go. That is simply the way the system is set up.

Appraisers will consider additional incentives only after the assignment volume one.

The hard truth is that right now there is simply not enough work for most appraisers to even consider the question of whether or not to take on a trainee.

 

[rescom]

AVM's have been proven to be unreliable. It will only be a matter of time until investors decide to not use them.

So are skippy appraisers, but that hasn't stopped investors from using them.

 

[Michigan CG]

Commercial also.Just wait..........:new_multi:

Greg, you are constantly saying this, and you have a little validity, but very little. Large lenders who lend on certain property segments could very well use an AVM, of course one would have to exist.

Appraisals of WalGreens or Rite Aid properties could be AVM generated, likewise land leases for McDonald's properties. But after that there is no validity to AVM's for commercial properties because of the lack of multiple sales and properties, especially in areas outside of major metropolitan areas.

 

[Luzette Eaves]

You say that no one is “dealing with trainees” these days. That is most likely true. In my area, there is not enough work for the Certified Residential people, so where are they going to get work to pass on to a trainee? It is not anything against new people or trainees; it is simple supply and demand!

 

[PropertyEconomics]

If I found a very good trainee at the moment, I would take them on in a heart beat. NOW is the time to teach .. what else do you have to do? Now is the time you can have one on one time with a really good trainee and when the work picks up, and it will, they will be ready to produce and make money. Even if it were part time, now is the time to teach.

Sad fact of the matter is there are few very talented trainees out there with the college back ground, the ability to write, with math and analytical skills necessary. The education they have gotten certainly hasnt been good ... and quite frankly it shows.

 

[Stone]

Greg, you are constantly saying this, and you have a little validity, but very little. Large lenders who lend on certain property segments could very well use an AVM, of course one would have to exist.

Appraisals of WalGreens or Rite Aid properties could be AVM generated, likewise land leases for McDonald's properties. But after that there is no validity to AVM's for commercial properties because of the lack of multiple sales and properties, especially in areas outside of major metropolitan areas.

Agreed. It is a bit of a red herring comment, IMO.

 

[Howard Klahr]

Due to the complexity of many commercial assignments/situations AVMs are not likely to capture a large part of the appraisal market. Especially since the majority of commercial assignments for lending purposes are based primarily on the income approach not sales.

However, most commercial lenders and institutional players already know the value prior to placing the order. In the commercial arena most participants have as much if not more experience than those that are performing the appraisals.

In reference to taking on trainees, it has been my personal experience that the majority of those seeking affiliation were not willing to do what is necessary to perform assignments at an acceptable level to meet my standards. As many of you are aware the licensing courses are woefully insuffcient in conveying basic valuation concepts and that properly performing assignments is quite a bit beyond just filling out the form. I have however been more successful working with certified residential appraisers looking to perform commercial work.

 

[hastalavista]

AVM's have been proven to be unreliable. It will only be a matter of time until investors decide to not use them.

(my bold)

JT-

This is news to me?
Who's proven them unreliable and where I can I find this information? :new_smile-l:

 

[hastalavista]

As to the general question about taking on trainees, it is a long-term proposition and I think one must be able to do a few things to be successful at it (in terms of business profitability):
A. Be willing to lose money the first year of training.
B. Be willing to break-even the second year of training.
C. Have a business model set-up that makes it advantageous to the trainee that when he or she upgrades to licensed, they will continue to want to work for the prior (now peer) supervisor.

I've trained a number of appraisers in the last 10-years and most still work for my firm (as well as some of these having developed clients of their own since their upgrades). It has been a definite win-win for me, but the break-even point in the investment usually comes about year two... right before the trainee is ready to upgrade. That's why I think it is important to develop a business model which makes it attractive and beneficial for the trainee to stay with the firm once they upgrade.

On a professional level (no profit consideration) I find the mentor experience is rewarding early in the training process.