PAREA Update: Alternative path to finding a supervisor

[Jacob Coleman]

If you are unsure what is PAREA, it was proposed to be used a replacement (or at least a partial replacement) for the supervisor/trainee work hours requirement.

For those interested in the PAREA program, here are some updates I just read from the Appraisal Institute. There are 15 states that have already adopted the PAREA (i.e., Arizona, Iowa, Louisiana, Michigan, Minnesota, Mississippi, Montana...)

Although some of them can fully use the PAREA as a replacement for the supervisor/trainee work hours requirement, some only recognize 50% or less. CG will recognize even less (i.e., the PAREA can only account for 15% of the CG work hours in Pennsylvania)

Here's a post with the updates. Just thought it would be helpful to share.

 

[sputnam]

PAREA reminds me of what a bank CEO said when the Feds forcred the bail outs on the banks... even on those that didn't want or need the help. The comment was something like, 'They just keep thinking of new ways for us to lose money.' PAREA is the same. It will make the path to certification easier. In no way will it make better appraisers.... or even appraisers who are just as good.

 

[Jacob Coleman]

PAREA reminds me of what a bank CEO said when the Feds forcred the bail outs on the banks... even on those that didn't want or need the help. The comment was something like, 'They just keep thinking of new ways for us to lose money.' PAREA is the same. It will make the path to certification easier. In no way will it make better appraisers.... or even appraisers who are just as good.

I take your point. But for people who really cannot find a supervisor, perhaps, PAREA could be worth considering. But PAREA is still at a very early stage. I look forward to see how it will develop.

Also, I was reading an article, (I think it should be from Appraisal Buzz), the author suggested using a grant as an incentive for appraisers to take on trainees. Perhaps, there could be another way to encourage new people joining the industry.

 

[George Hatch]

They literally could not pay me enough to take in more heads while the long term market for services is in decline. Only a fool would take the short dollar at the expense of the long dollar.

 

[sputnam]

I take your point. But for people who really cannot find a supervisor, perhaps, PAREA could be worth considering. But PAREA is still at a very early stage. I look forward to see how it will develop.

Also, I was reading an article, (I think it should be from Appraisal Buzz), the author suggested using a grant as an incentive for appraisers to take on trainees. Perhaps, there could be another way to encourage new people joining the industry.

PAREA is an answer for who? (or should that be 'whom). It's certainly not the way to produce better appraisers. If the industry really wanted better appraisers, it would make it more lucrative to train appraisers. Pay fees that would allow the trainee to earn a living AND justly compensate the mentor for the time spent. I personally think that a hybrid approach... with no more than half of the required experience being fufilled by PAREA... might work..

 

[alebrewer]

Remember too that, even though it's been adopted by some of the states, there is no viable program to join as of yet. AI keeps saying they're close, but no one knows how close they area. To GH's point, they're a dime short and a day late... if it was in place 5 years ago, it would have been welcome relief for the appraisal bottlenecks. There are no bottlenecks any longer.

 

[ucbruin]

"Pay fees that would allow the trainee to earn a living AND justly compensate the mentor for the time spent."

Doesn't sound like a free market suggestion...

I'm just messing around....

 

[alebrewer]

I'm not opposed to PAREA at all - read back through some of my posts. My point was that the timing couldn't have been worse.

 

[JTip]

I like the idea of partial credit. Nothing beats boots on the ground learning though.

The biggest hurdle for me (and my trainee) is getting clients/AMC to accept or get them in their 'trainee program' so they can be recognized in the report.

 

[George Hatch]

I like the idea of partial credit. Nothing beats boots on the ground learning though.

The biggest hurdle for me (and my trainee) is getting clients/AMC to accept or get them in their 'trainee program' so they can be recognized in the report.

Easier than that - all the lenders have to do is to change their internal policies and accept appraisal reports that are countersigned "did not inspect". They could even offer those assignments at a reduced fee when compared to the assignments they required the supervisor to personally inspect. The market would respond accordingly and the long term supply of appraisers would balance itself out. There are easily enough shortsighted appraisers who would jump at that deal.

Accepting "did not inspect" countersignatures would render PAREA economically obsolete. And it would ensure that the supply of appraisers would always be in excess of the demand for services. The lenders would never have to pay another $400 appraisal fee ever again. The lenders hold all the cards on the "we're running out of appraisers" issue. They always have.