Upcoming Changes To Real Property Appraiser Qualifications

[J Grant]

AMC's do not have a problem yet in populated areas and states with many appraisers. In about 2-3 years, they might have problems as some appraisers burn out or lose their license. If res appraisers can survive the next few years in these areas, things will get better, but the AMC's that control any volume will not give an inch on fees till they have to. The field imo will change for the better but still a lot of pain to go around, the degree req 10 years ago could have prevented the steep decline of the res end of the field, now it will be an uphill climb.

 

[Ariba]

This tells me you don't understand supply and demand. When the economy gets better appraisers make more once the supply and demand is in equilibrium. When fees get back to where they are good there will be trainees.

There will never be a shortage of appraisers. The Real Estate lobby is to strong and Congress will just pass laws that will except BPO's from agents for all types of mortgage transactions.

 

[J Grant]

There will never be a shortage of appraisers. The Real Estate lobby is to strong and Congress will just pass laws that will except BPO's from agents for all types of mortgage transactions.

Seriously? I don't think so.

 

[NorthTexValuation]

There will never be a shortage of appraisers. The Real Estate lobby is to strong and Congress will just pass laws that will except BPO's from agents for all types of mortgage transactions.

I would not be surprised to see something like a combination of AVM + BPO or some other very limited appraisal product for a high percentage of residential mortgage loans in the future. The way to limit foreclosures has always been based on minimizing credit risk as opposed to being all concerned about collateral based risk, i.e. FHA's horrible model.

Any residential appraiser that appraises in a medium to large homogenous market area of "typical" SFR properties that thinks fees are going to rise substantially in the future is kidding themselves.

 

[nm505]

Not sure they will go to Congress, however, they (RANM and NAR) have been lobbying NM for a couple of years. They brought in Clear Capital last year to make all their presentations. Luckily, the clock ran out on the legislation. This year they came back with fewer restrictions and were including commercial "valuations". We never really got to see the proposed bill. Our NMAC lobbyist and legislative chairman rejected it and appraisers called/emailed. It did not get on the calendar (short session) thanks to their efforts. But...as the Terminator says......

 

[Michigan CG]

You folks forget that Fannie and Freddie will be downsized significantly, both parties want it, it will happen. That leaves investors, and they will demand more than a BPO or a two week experienced Realtor.

 

[Roy Courtney]

You folks forget that Fannie and Freddie will be downsized significantly, both parties want it, it will happen. That leaves investors, and they will demand more than a BPO or a two week experienced Realtor.

Totally agree! Some also forget that residential mortgage lending is only a part of the appraisal business. I have said it before but again, the city needs to extend a water line, a sewer line, widen an existing road, build a new road, build a new fire station, police station, expand the water treatment plant, the sewer treatment plant, the school district plans to expand or build a new school campus, the state highway department is building or expanding, the Federal government is building or expanding, there are folks with tax problems, there are folks that have too much oil/gas/timber/lignite, etc. on their land and need an appraisal. Barbie and Ken are getting a divorce, on and on and on. There is more business than any of us can take care of if you just look! AMCs suck....no need to look there ! LOL

 

[The Warrior Monk]

There will never be a shortage of appraisers. The Real Estate lobby is to strong and Congress will just pass laws that will except BPO's from agents for all types of mortgage transactions.

Could that happen? Sure. But the government can't print money forever, and eventually rates will have to reflect risk. Would you rather pay a few hundred extra for an appraisal and get a loan at 6%, or buy a $50 BPO and land a 30 year loan at 15% to reflect the risk?

 

[The Warrior Monk]

A couple weeks ago a non lending client needed an appraisal on a complex residential property. I quoted them a month and $900. Another non lender called me last week and I told them two weeks. Today an AMC called me about a property that no one would take and they wanted it in four days. Two appraisers had actually been to the property and decided no go. I told them 10 days and there was no hesitation.

I had the same thing happen to me. A client needed a church on the National Register of Historic Places appraised. The were very specific on requiring a local expert with experience in appraising atypical properties. However, their turn-time requirements were to restrictive, so I passed. A week after the report was reputedly due, they called me again. By that time I was booked up for about two months, so I wouldn't accept it under any circumstances.

 

[Ariba]

Could that happen? Sure. But the government can't print money forever, and eventually rates will have to reflect risk. Would you rather pay a few hundred extra for an appraisal and get a loan at 6%, or buy a $50 BPO and land a 30 year loan at 15% to reflect the risk?

What risk? There is no risk. The government will always be there to bail us out. :new_snipersmilie: