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McKissock dumps PAREA

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It isn’t surprising that McKissock tabled PAREA. AI seems to have had a head start on them and will likely suck up what little demand there is before McK could launch.

I am somewhat relieved McK halted implementation of PAREA. The AQB set up a structurally unsound system for PAREA. Once the AQB approves a Vendor’s PAREA program there is virtually no oversight by the AQB except to respond to complaints or (optional) audits. By then a rogue Vendor could have done considerable damage (think how an AMC could abuse this to staff an army of newbies).

As it stands now, the Vendor hires the Mentor. The qualifications to be a Mentor are the same as those of a Supervisor. In other words, a very low standard. The AQB should have modeled Mentor qualifications like those to be an USPAP Instructor. Besides standardization of the training done by the AQB, this would better align the interests of the Mentor with the AQB rather than with the needs (greed) of the Vendor.
 
One of the primary factors contributing to the cancellation is the substantial resource cost required to provide a product of the quality we envisioned. In our pursuit to deliver a premium solution, the associated costs exceeded initial estimates, resulting in a higher-end price to our customers.

In other words, cannot provide quality training needed in a manner that is economically viable for our business. Same thing appraisers have been saying for decades. Makes you wonder whether AI can do it either.
 
^^^
The AI could run PAREA as a loss leader in the hope of hooking the PAREA grad into an AI class devotee or AI designation. Get them to be dues paying members at the beginning of their career.
 
Does AI allow PAREA replace the experience requirement for designation? Doubt it.
 
With the sped-up PAREA process, you, too, can more easily enter the rewarding field of residential appraisal!

Here are some of the exciting things the profession has to offer the elite people who obtain a residential license:

1) Uneven income: Real estate is cyclical, so you can expect periods of low demand when your expenses exceed your income, which gives you the opportunity to expand and explore other interests.

2) Limited demand for your services: The bulk of residential work is mortgage lending work, which has contracted due to Fannie and Freddie initiatives; you can bask in the knowledge that their affiliated AMCs are profiting from nonlicensed people inspecting - your income is reduced but your car will have lower mileage on it.

3) Third-party fee gouging: A large portion of residential mortgage work goes through AMC's who are paid out of a split of the appraisal fee,giving you the opportunity to participate in capitalism by having to submit humiliating and not profitable low $ bids in order to "win" an order:

4) Everybody is an expert: After you submit your opinion of market value, it will be subject to scrutiny from an array of people or data programs -if they disagree with your value, they submit a reconsideration of value and can tie you up for days of having to respond, gratis, to them. This keeps your skill level up ! Stock up on Prozac.

5) Anybody can review your appraisal and file a complaint: A non-standard appraisal review can be done by anybody! Or by a computer! Thus, you can look forward to the intellectual challenge of days of revision requests from laypeople and even the amazing experience of having to hire an attorney to defend your appraisal from a board complaint due to a minor USPAP error.

6) Your clients can drop you for doing your job: You will get to experience having clients drop you for "coming in low" ( a market value opinion that is under a sale contract for example ) and they will never tell you why, they will simply stop sending you work. Thus, every day is a new opportunity to "adapt" to the ever-changing dynamic of this fast-moving industry.

Sound exciting? It is ! Unless you take a very low-paid, grueling AMC staff job, the above is what you can look forward to along with no health insurance, no benefits, and high expenses. The profession is an equal opportunity one, which welcomes anybody with a pulse! Or even those who no longer have a pulse! Apply today and start your journey on this exciting career path.
 
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One of the factors that could come into play is the fact that we are in a low volume environment for the foreseeable future, coupled with the fact that over the next 5 years artificial intelligence will make great strides toward making valuation more efficient. Given deflationary headwinds we all face, there might not be any need (or market) to train new appraisers at all. We could be among the last. Future analysts might not very much resemble present day appraisers, and so the curriculum will rapidly evolve too, which is not ideal for educators. Not only is appraisal as we know it dying, appraisal education and professional associations are dying.
 
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A post in a similar FB thread-

"The only "barrier to entry" into the appraisal profession is the continued degradation of the pay and ability to do our work from the very people complaining about it - GSEs and government agencies. How do they think appraisers were trained for licensure from 1991 forward for 30 years? "Magic" that suddenly stopped working? They act like it's a big mystery that needs a "new and innovative solution". No, it does not. It needs them to fix what they broke, period. Pay appraisers appropriately and stop screwing with their independence and suddenly you'll find it an attractive career people want to go into and there will be enough financial incentive for supervisors to train people appropriately and competently."
 
J Grant said:
With the sped-up PAREA process, you, too, can more easily enter the rewarding field of residential appraisal!

Here are some of the exciting things the profession has to offer the elite people who obtain a residential license:

1) Uneven income: Real estate is cyclical, so you can expect periods of low demand when your expenses exceed your income, which gives you the opportunity to expand and explore other interests.

2) Limited demand for your services: The bulk of residential work is mortgage lending work, which has contracted due to Fannie and Freddie initiatives; you can bask in the knowledge that their affiliated AMCs are profiting from nonlicensed people inspecting while reducing your income means your car will have lower mileage put on it.

3) Third-party fee gouging: Since a large portion of what residential volume remains goes through AMC who are paid out of a split of the appraisal fee, you will have an ongoing opportunity to participate in capitalism by having to submit humiliating and not profitable low bids in order to "win" an order:

4) Everybody is an expert: After you submit your opinion of market value, it will be subject to scrutiny from a host os individuals and computers, who if they disagree with your value, can send in a reconsideration of value and tie you up for days of having to respond, gratis, to respond to what their idea of the value is.

5) Anybody can review your appraisal and file a complaint: A non-standard appraisal review can be done by anybody! Or by a computer! Thus, you can look forward to the intellectual challenge of days of revision requests from laypeople and even the amazing experience of having to hire an attorney to defend your appraisal from a board complaint due to a minor USPAP error.

6) Your clients can drop you for doing your job: You will get to experience having clients drop you for "coming in low" ( a market value opinion that is under a sale contract for example ) and they will never tell you why, they will simply stop sending you work. Thus, every day is a new opportunity to seek out other clients or side jobs and "adapt" to the ever-changing dynamic of this fast-moving industry.

Sound exciting? It is ! Unless you take a very low-paid, grueling AMC staff job, the above is what you can look forward to along with no health insurance, no benefits, and high expenses. The profession is an equal opportunity one that and welcomes anybody with a pulse! Or even those who no longer have a pulse! Apply today and start your journey on this exciting career path.
Click to expand...
Nice, you should submit that as an article to "Working RE", "Appraisal Today", or heck, Linked In. The general public should hear from a minority appraiser actually in the field already. Break some hearts!
 
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