The Difficulty of becoming an Appraiser Today

[alavalue]

You didn't say what level license you currently hold. If you want to share that with us I believe it would help narrow the feed back.

 

[George Hatch]

If you can, try and find a reputable fee shop with a high quality supervisor who will help you advance in your career. It's all about building the solid foundation and establishing a good reputation. A 30+yr career is a marathon, not a sprint.

 

[Tom4value]

Being an aviation buff, the OP's post sounds like, "I just got my private pilot's license. I want to fly jets for American airlines. How do I get them to hire me?".

Never mind getting clients for a new business now. You don't have the experience. At this point, the only thing you can do is critique your supervisor. If he/she is giving you no guidance on how to be a better appraiser, find another one. I worked for 3 appraisal companies for 8 years before I hung out my shingle. Some do it sooner if they are fast learners but I have also seen appraisers who after a year or two go out on their own and crash and burn. Like almost all professions, experience/time is crucial.

One thing you can do now is get your certification. Lenders, by and large, ignore licensed appraisers. They want certified appraisers. This will also open you up to FHA/VA and high end appraisals. Take the time, keep asking questions! Good luck!

 

[RCA]

I would like to see that 55+ group broken down more. 55-65 and 65+.

I just downloaded the latest lists of AG and AR "ACTIVE" appraisers in California. There are 2646 active AG and 4,536 active AR. These appraisers are keeping up on their CE and paying an expensive license fee every 2 years. So, it would make sense to assume most are working as appraisers in one capacity or another. A random selection indicates the majority are indeed in their 50's or 60's. We might assume most will be active for another 10-15 years.

But, the robots are coming. And one robot with AI backup can probably replace 50 appraisers easily. And do that with nearly error free advanced reports, delivered within a day. With the current progression of AI and robotic technology, there is no way the current profession of traditional appraisers can carry on for more than 10-15 years.

So:

1. Traditional appraisal is not a viable career for young people. And we see that in the number or Licensed and Trainee appraisers in California: Only about 800 Licensed Appraisers and 400 Trainees.

2. The future belongs to a higher level appraiser, let's say "Valuation Engineer" with a good knowledge of Advanced Statistics, AI, Programming, etc.. And California will probably not need more than 200 for real estate appraisal. In fact they most likely won't limit themselves to real estate appraisal - they will take on equipment, business and other types of appraisal. - Well, then the number could probably increase quite a bit.

 

[J Grant]

Working for other appraisers is difficult because the Fee Appraiser has seen volume drop and is less willing or able to hand off extra if it exist for their business. Some are always scared that you will steal clients as well. I need to go to an AI or a local appraiser meet up to market myself but those meeting are two times a year at most.

The other thing is the education. I need proficiency in more tools than Compared Sales Analysis to handle more complicated appraisals. Conventional loans seem to be something more complicated in one way or another. I would love to know the tricks of the trade to build efficiency using spreadsheets. I am willing to put in the work to be a more advanced and effective appraiser but the education thing is difficult without guidance. I dropped over $1,000 on AI text books recently.

Why in the world do you want to do this, when all indications is that it is a bad investment....if you paid 1k for books ? (why?) then try re-selling them or consider it an education if you ever invest in RE. Unless you itned to go for a commercial license or are willing to re located to a very remote area ( Alaska?) where there are few appraisers and teh weather /location see a better fee, do something else - something that is in demand that has a future, , where the education and first few years at lower pay might end up in a rewarding, real , viable career.

Being a fee appariserf in res used to be good, but between the AMC;s having a large share of volume and taking a fee split , the recent changes from Fannie and Freddie that allow a non appraiser to inspect for hybrids and that use waivers (no appraisal ) for a portion of loans, no matter how many retire or quit, there will never be enough of a shortage within th next decade plus to matter.

Look into health care, electrical or plumbing, or urban planning (high-paid govt jobs ) , teaching, and even being a corrections officer pays better than apparel now ( how sad is that, but look at the salaries and benefits they get and it is true. Seek advice from a career counselor or the online sites that compare fields and demand and pay - or go for a job that has some other reward like fun or social or doing good for humanity or animals - it is not always about the pay only, ( though that is important )

Teachers are always benching, but every teacher I know retires comfortably, and they have lots of vacation time and benefits and room to advance if they choose. A fee appraiser gets no benefits, no paid health insurance, nothing, and the cheap pay AMC jobs offer the bare min in 401k or partly paid insurance and low pay.

If you intend to pursue a career in commercial appraisal, be open to relocating to get trained - the Appraisal Institute has a job board that used to be searchable online ( might still be ) that indicated firms hiring, and they may not be in your area.

 

[ucbruin]

"If you can, try and find a reputable fee shop with a high quality supervisor who will help you advance in your career."

With today's appraisal volume....
The "new" appraiser to the fee shop will become the Caitlin Clark of the office....

 

[Fernando]

I just downloaded the latest lists of AG and AR "ACTIVE" appraisers in California. There are 2646 active AG and 4,536 active AR. These appraisers are keeping up on their CE and paying an expensive license fee every 2 years. So, it would make sense to assume most are working as appraisers in one capacity or another. A random selection indicates the majority are indeed in their 50's or 60's. We might assume most will be active for another 10-15 years.

But, the robots are coming. And one robot with AI backup can probably replace 50 appraisers easily. And do that with nearly error free advanced reports, delivered within a day. With the current progression of AI and robotic technology, there is no way the current profession of traditional appraisers can carry on for more than 10-15 years.

So:

1. Traditional appraisal is not a viable career for young people. And we see that in the number or Licensed and Trainee appraisers in California: Only about 800 Licensed Appraisers and 400 Trainees.

2. The future belongs to a higher level appraiser, let's say "Valuation Engineer" with a good knowledge of Advanced Statistics, AI, Programming, etc.. And California will probably not need more than 200 for real estate appraisal. In fact they most likely won't limit themselves to real estate appraisal - they will take on equipment, business and other types of appraisal. - Well, then the number could probably increase quite a bit.

AI will replace many jobs. Not just AI, but entry computer jobs are replaced in US with hiring of cheaper foreign techies.
I can see AI initially doing valuations for cookie cutters.
I love the easy money doing cookie cutters but many appraisals in Bay Area are unique in appeal, location, views, etc which I can't foresee computers replacing me in near future.
It will take more experienced appraisers like me to appraise those types of homes.

 

[David S]

Very interesting, one side current appraisers are complaining about low volume and low income, another side new folks are keeping jump in. From last year, I saw more posts for new coming appraiser than before. Does public don't know this is a dying business?

 

[J Grant]

AI will replace many jobs. Not just AI, but entry computer jobs are replaced in US with hiring of cheaper foreign techies.
I can see AI initially doing valuations for cookie cutters.
I love the easy money doing cookie cutters but many appraisals in Bay Area are unique in appeal, location, views, etc which I can't foresee computers replacing me in near future.
It will take more experienced appraisers like me to appraise those types of homes.

AI is vastly over rated. I don;t think AI will take as many jobs as people think, however the decisions have already been made at Fannie and Freddie to divert a portion of valuations away from appraisals and the profiteers will just one to increase that trend - and that will cut into volume even in a busy cycle.

 

[Fernando]

Very interesting, one side current appraisers are complaining about low volume and low income, another side new folks are keeping jump in. From last year, I saw more posts for new coming appraiser than before. Does public don't know this is a dying business?

I have a fellow appraiser who is younger (in 40s) and he has the mojo in appraising which I have lost.
He's willing to go further and probably lower fees in getting more appraisal work. When young, they have more energy and drive to succeed. Good for them.