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The Appraiser Shortage Myth Destroyed In The First 12 Minutes

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DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
So, if I posted national housing stats, that would disprove the notion that there is a housing shortage in Nashville right now? :)

The biggest problem I have in this whole "Is there a shortage" debate is that it has become like national politics. People take extreme views and then belittle and scoff at those "on the other side" who have views that are just as extreme.

Anyone who works on a national level knows that there are areas where the number of appraisers is not sufficient to provide the level of service most users are accustomed to. Does that mean there is a shortage? - well, like it or not, that is how users view it.

I am VERY concerned that the circumstances that exist in a limited number of market areas will pressure regulators into making changes that are more sweeping than is really necessary. At least that is the cautionary view that I have shared with the AQB, FHFA, and anyone else who would listen.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Appraisers know if they are busy or not, just like a person will know they are unemployed or not because they have no job.

Some are busy, some are not, all in the same area.

Presenting a narrative that there are shortages of appraisers is silly because it is driven by an agenda, not reality.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
The reason there is a shortage of appraisers in a "limited number of markets" is those markets have a group of appraisers who don't put up with overly demanding, aggressive AMCs who have frustrating report checkers or are just difficult to work with or demand low fees.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
Presenting a narrative that there are shortages of appraisers is silly because it is driven by an agenda, not reality.

The agenda is typically just to get appraisals done faster. :) There are tons of areas where getting appraisals done in one to two weeks is no big deal. There are other markets where it takes 30 days or longer. In rural areas longer turn times have long been the norm, and folks are used to that,. What lenders are not accustomed to (at least not in today's world) is waiting 30 days or more to get appraisals done when the subject is in a urban/.suburban area, and there are areas like that.

I have shared this example before - my Nashville landlord just bought a home. It was three weeks before an appraiser even called him. He used a local lender that does direct engagement. That is just where the market is right now, and it is not what lenders/agents/buyers are accustomed to. I share this because I know will say - "Well, the appraisers just don't want to work for AMCs." In areas where there is a perceived issue, it is NOT just AMC orders that are affected.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
The reason there is a shortage of appraisers in a "limited number of markets" is those markets have a group of appraisers who don't put up with overly demanding, aggressive AMCs who have frustrating report checkers or are just difficult to work with or demand low fees.
As you can see from my last post, I accurately guessed that this response was forthcoming. Call any direct-engagement lender you want to in Portland, Seattle, Denver or Nashville and ask them how they view the market. :) It is NOT an AMC issue, it is simply an issue of their being so many appraisals being ordered that the appraisers in the market cannot complete them in the time frame that has been viewed as "normal."
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
.............there are areas where the number of appraisers is not sufficient to provide the level of service most users are accustomed to.

We heard about the shortage last year, all year but not so much this year.

The COW states were in the industry news last year, not so much this year.

Take a step back and look at what some AMCs might be going through now that it is slower than last year. If I am in a COW state and business is still pretty good what clients am I going to turn down when choosing work? Would it be rational to assume that appraisers are saying no to AMCs but saying yes to local lenders, direct engagement clients, Mercury Network clients and private work?

This year it appears that many of the AMCs have turned to the blast requests of fee and turn time, I know I get them all the time and simply delete them. I am guessing many others are doing the same. Why "bid" on two assignments per day when we all know it is the fastest and cheapest will get the work? Why waste time looking up a property when the chances of getting the job are slim to none?

Supply and demand will fix the COW states while people in Atlanta and S Florida are asked to complete $250 assignments.
 
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