The Value of Designations for Certified Residential Appraisers

[TallRedd]

As you likely suspect by the title, I have a question for those who are independent appraisers and the actual value of designation (SRA in this case).

Back story: I transitioned into the profession in 2017 after working in another profession for 7 years. I received all of my qualifying education through the Appraisal Institute, which was definitely high quality learning with awesome instructors. I only lack taking the exam for my SRA designation. The only reason I have procrastinated to now is I am finding it extremely difficult to stomach the $900 annual dues for designated members. This profession has been good to me and my family and while I do want to stand out among others in the profession, I want to do so within reason. $900 over the next 30 years (assuming the dues remain the same) is a lot of dough. If I were to invest that with a 5-9% return over the same amount of time the amount is substantial to me.

Question 1: For anyone on this forum as a Certified Residential Appraiser with the SRA designation, have you found this credential to be truly worth the cost?

Question 2: What kind of clients, if any, care to see designation and give preference to appraisers with designation status? In my area, I have found it difficult to find any clients (including attorneys) that really care. Lender clients, I have found, certainly do not.

Thank you for any consideration and responses on this. In a way I want to go through with this because I am so close to achieving it. At the same time, the cost over time is great and I am finding that most of my potential clients really do not have a preference for such. Am I missing something?

 

[Webbed Feet]

I will say this, I have seen "designated" appraisers that have written and signed appraisal reports that amply demonstrated they should be summarily kicked out of the designation club (I use "club" intentionally) they belonged to and then as far as being real estate appraisers also immediately have their state licenses revoked. Just like the medical profession having licensed and designated incompetent individuals within it, so does real estate appraising and the damage these folks do to the worth of "designations." Then you have the marketing of yourself and your own business. If that is done poorly, does a designation make up for it by garnering more business? Let me ask you this, the last five times you selected a doctor for anything, what were your parameters for the selection? Personal referrals? Location? Professional referrals? Did you inquire about their high school and college grades? Designations? Why did you select who you selected? Last I was active as a residential appraiser, about the ONLY three parameters that seemed to matter to the bulk of lender work was how fast can you turn around a report; how cheap will you work; and do you give us the values we want? If any residential "appraiser" was always willing to ring the bell on all three of those, they had LOTS of work! They did not need any designation, experience, honesty, or ethics at all.

 

[George Hatch]

I'm an outsider but from what I've seen over the years much of the return will be primarily dependent on how good your marketing is, and how above-average your work quality is. How well you pay attention to the details and how easy you make it for the users to accept and use your reports without having to go back-n-forth a lot for revisions.

 

[Tom4value]

I am “old school”. My first appraisal was the second day of 1992. That was before licensing. At that time, they said, “get your designation of SRA from the Appraisal Institute if you want any clients.” I think I took a USPAP course and one other with AI. Then they came out with licensing. I took my required classes to get my Certification with another school. I then found out that all they cared about was my state Certification. Never went after my SRA after that.

I have had my own shingle since 2001. No one has even heard of an SRA, let alone asked if I had it. Not saying don’t get it. Never been one to refuse bettering oneself. Just saying don’t fret it.

 

[Terrel L. Shields]

Absolutely the only designation I've ever been asked about is the MAI. So, I recommend you get your certified GENERAL license and then think about getting the MAI. Don't stop at CR. Residential work is mostly lending work and lending work is feast and famine with an onerous layer of FNMA/FHA bureaucracy on top.

 

[Mark K]

In the past 10-15 years I've only known appraisers that dropped their AI affiliation, none that spent the time and MONEY to join the club.

And in 34 years of appraising, I've never been asked if I had an SRA or any other letters after my name. All they want is a license.

 

[sputnam]

I am “old school”. My first appraisal was the second day of 1992. That was before licensing. At that time, they said, “get your designation of SRA from the Appraisal Institute if you want any clients.” I think I took a USPAP course and one other with AI. Then they came out with licensing. I took my required classes to get my Certification with another school. I then found out that all they cared about was my state Certification. Never went after my SRA after that.

I have had my own shingle since 2001. No one has even heard of an SRA, let alone asked if I had it. Not saying don’t get it. Never been one to refuse bettering oneself. Just saying don’t fret it.

Yep. When licensing became the rule, Lenders mostly stopped caring about designations. They migrated (again mostly) to the minimum requirements. The lender's job isn't really to have the best appraisers (though it should be), the lender's job is to close loans.

 

[TallRedd]

Thank you all for the replies. The fact that no-one has spoken to any benefits of it is quite telling. I too have reviewed reports that were produced by designated appraisers and I was appalled at some of the things I saw (or did not see). So far, I have not been able to find alternative clients (i.e. attorneys, title companies, etc) that seem to care or have preference either.

 

[Tom D]

I gave mine up long ago with certification. The institute cares not about residential appraisers. It is a total waste of money.

Congrats on doing your demo report. It was also the hardest, longest, test that i ever took. Long, long ago, out of a class of 100 students, i think only 4 of us got the SRA. I think the demo report killed everyone else. When i got it, it was the only way to get work at that time.

 

[Essexfenwick]

I get legal work and small bank internal work and the SRA helps. They want credentials. Its especially useful in slow periods not much during booms. If you are committed to being a residential appraiser and plan a long career you should get an SRA. It makes marketing easier. The credentials for licensing are being watered down and the Institute is strategizing the increasing importance of the SRA credentials