PAREA: Darn the torpedoes / 3 Sheets to the Wind

[George Hatch]

Yeah, I saw it. Even if true, #whocares

 

[J Grant]

If only the most complex, rural assignments remain, what work do they see a PAREA grad doing in the coming years? It would seem they are creating a training program for assignments that will no longer exists.

Why do appraisers assume only the most complex and rural assignments remain ?

There is no proof of that. Unless waivers take a big hold of the industry, but would interest rates rise if that happened? Remember a waiver is not just waiving the appraisal, it is waiving the warranties and relief ( liability for the value ) for bank or lender-and putting it back on the tax payer. That means, if a loan goes bad, teh lender is absolved for the value, and taxpayers alone are stuck. Too much of that and the investors buying the loans might not want to keep their confidence wrt lower rates or down payment terms.

Idk, just speculating like everyone else is, but those are my 2 cents - four cents now with inflation.

 

[shrubberyvaluation]

So basically you will have new certified appraisers that are trainees but without the trainee restrictions.

 

[J Grant]

So basically you will have new certified appraisers that are trainees but without the trainee restrictions.

No, it sounds like they have to finish the 1000 PAREA hours ( doing mock reports?) pass the exam, get certified. The amount of hours and minimum of a year has been reduced. I think the advantage is consistent training wrt PAREA. The disadvantage is the newbies will have very little field experience and might have culture shock when they start doing real appraisal assignments.

I don't think the field will be flooded with newbies, who the heck will want to do it considering the payoff on residential side is so uncertain. Those that want to become appraisers though, at least it gives them the opportunity. How well they will fare in actual working conditions with client pressure and all the scrutiny on reports is the unknown. The people in charge thinking they can ask for even faster turn time are out of touch with reality, unless they want a real piece of garbage report and want to sacrifice all the newbies who will have short careers if their reports are so bad.

 

[Highlander416]

No, it sounds like they have to finish the 1000 PAREA hours ( doing mock reports?) pass the exam, get certified. The amount of hours and minimum of a year has been reduced. I think the advantage is consistent training wrt PAREA. The disadvantage is the newbies will have very little field experience and might have culture shock when they start doing real appraisal assignments.

I don't think the field will be flooded with newbies, who the heck will want to do it considering the payoff on residential side is so uncertain. Those that want to become appraisers though, at least it gives them the opportunity. How well they will fare in actual working conditions with client pressure and all the scrutiny on reports is the unknown. The people in charge thinking they can ask for even faster turn time are out of touch with reality, unless they want a real piece of garbage report and want to sacrifice all the newbies who will have short careers if their reports are so b

Why do appraisers assume only the most complex and rural assignments remain ?

There is no proof of that. Unless waivers take a big hold of the industry, but would interest rates rise if that happened? Remember a waiver is not just waiving the appraisal, it is waiving the warranties and relief ( liability for the value ) for bank or lender-and putting it back on the tax payer. That means, if a loan goes bad, teh lender is absolved for the value, and taxpayers alone are stuck. Too much of that and the investors buying the loans might not want to keep their confidence wrt lower rates or down payment terms.

Idk, just speculating like everyone else is, but those are my 2 cents - four cents now with inflation.

You are right of course. I think that many of us simply assume the worst. I do love working as an appraiser. One thing that I always remind myself of when worrying about the future, is that there are no guarantees in life. For example, I am in my late 40s and worry a lot about possible appraisal business changes leaving me in a tough spot in my mid to late 50s. One of my parents was laid off from a management position at 56 and never really recovered, eventually taking a big pay cut to work retail the final 8 or 9 years until retirement. That has always stuck with me. But, what is the guarantee that whatever new thing I jumped to now would get me to retirement? There is none. Perhaps the highest probability is a govt position, but still no guarantee. Just helps to try to keep things in perspective.

 

[The Bob]

There is no way to 100% replace what real world experience teaches. Especially in a field like appraising. It's not like engineering where a piece of 1" steel at 70 degrees will always support x weight. Its' called "practice" for a reason.

 

[George Hatch]

I think what a lot of people miss on the issue is that operating as an appraiser includes operating in the ROLE of an appraiser. There's a lot more to being competent at the job than simply figuring out how to fill the form out correctly. How we need to interact with people, what it takes to use all these different databases, how to identify the right questions to ask and so forth. The various ways and extent to which our impartiality is constantly challenged by both sides of these transactions.

There are 1000 little details that no structured course curriculum will ever be able to *illustrate* in terms that a student will be compelled to take seriously. For students it's all abstracts until they run into them IRL. All those contrived appraisal problems where the details contribute to the neat and uncluttered outcome. Conclusive vs inconclusive. How to predict and answer questions in advance and how to respond to stips after the fact. Etc.

The development of appraiser competency is at least partially a contact sport. IMO

 

[RustyTapeMeasure]

View attachment 61838

Wow, thanks for uploading this as I had not seen it.

 

[Non Sequitur]

So basically you will have new certified appraisers that are trainees but without the trainee restrictions.

Yes. After finishing a PAREA course they can apply for certification, and they may or may not have a mentor to guide them through their first live assignment. Beyond crazy, but just read some of these posts. Even now some appraisers are still debating the merits of PAREA.

 

[alebrewer]

Consider this: the current system of gaining experience hours is one where the 'supervisory' appraiser is required to be credentialed for 3 years - and then is somehow qualified to teach someone else how to be an appraiser. The proposed PAREA system is one where folks who are SPECIFICALLY TRAINED in training others how to be appraisers are the ones providing the training. It seems to me the 'newbie' PAREA folks just may be more qualified to produce a live assignment than those who were trained by people who don't even know the difference between extraction and allocation.