Upcoming Changes To Real Property Appraiser Qualifications

[The Warrior Monk]

Where will they work if not with AMC?

Most of the AMC work is related to GSE assignments. There is a ridiculous amount of nonGSE work out there.

If there is this wide open field of non AMC work why are the majority of appraisers working NOW, many with 5, 10, 15 years or more experience taking those jobs and shunning AMC work?

Generally, appraisers that have done only form work will need to seriously upgrade their skills. They will also need to completely redo their business models, since accessing this work takes a whole lot more than filling out a form, as it done with AMCs. Even with that, residential appraisers won't have access to many of these jobs, because many projects involve residential and commercial properties, and the firm must be able to handle both.

And I don't see a rush to CG either.

There won't be a rush. What will occur is the percentage of CGs relative to CRs for those entering the business will increase since both will require a college degree. It's simple economics. Why do assignments for a three-figure fees when you can do four/five figure fees for just a few more courses?

Once that side of the biz gets flooded with too many looking for work you will see the same competition results that you see on the CR side.

This won't happen, because of the high barrier that is being set. The reason there are so many appraisers in the business is because of the incredibly low barrier to entry in the past, along with the guarantee of quick money. If there was no flood of CGs in when barriers were set incredibly low, it is completely unreasonable to assume there will be a big flood when barriers are set very high.

It's a matter of where the incoming appraisers will go. I see no reason to get a CR when a CG provides access to much higher fees will little extra education.

It will be a nightmare.

The nightmare will be not enough appraisers to handle the amount of work. It's already started.

 

[J Grant]

I don't know where some of you are meeting all these supposedly stupid college grads who can't even remember what major they took? I agree, a college grad can be of average or less than average intelligence, but I don't recall meeting so many idiots...but, one has to keep in mind, the type of person being described, who partied their way through school and barely graduated, I doubt this type of person will be drawn to appraisal. There is too much work invloved in it, the training period is tough, I don't see it attracting the lazy party boy/girl element . They would tend to be attracted to either glamour jobs or fast money jobs such as the financial sector...appraising takes smarts but is also a high work ethic type career.

 

[Pittsburgh Pete]

And I completely Agree with you. I was going to say the same thing until I saw you had said it. I know tons of people who barely got their degree by stumbling through college and are dumb as a box of rocks. Half of them can't tell you what classes they took and some can't even remembered what they studied when they were in college, Majors or Minors. So this notion that there will be a better grade of applicants who will become appraisers just because they have a college degree is idiotic. Thats the same thinking that the world and colleges want people to believe. So many people fall into the trap sold by colleges that someone with a degree is better that someone without one. Just completely a ridiculous stereotype.

It's a ridiculous stereotype that the market at large embraces. Ever see the variance between life time earnings of college grads vs. high school grads?

 

[TC]

My township police force requires college grads, is it too much to ask that we as professionals have one?

 

[Delta85]

I don't think the commercial side will be "flooded" with appraisers, but I believe that by the time new people are coming into the field, the low pay and lack of options in having only a res license will be well known (which wasnt' the case when most of us started out), thererore, the majority of those who do become appraisers will seek the cert gen license.

Eventually that would lead to an oversupply much like we see on the CR side and the same situation will develop on the CG side. People are not gonna spend 4 years in college and then even more time getting their CG and then hold out for certain fees with college debt and other bills piling up. If that was the case we would not be seeing college grads bagging groceries so often today. Lack of work and piling debt. will make anyone accept a less than c/r fee.

 

[Delta85]

Most of the AMC work is related to GSE assignments. There is a ridiculous amount of nonGSE work out there.

Where is this so called non GSE work and how come SO many appraisers of various experience and knowledge can't seem to find enough of it to make a living?

And I'm to believe a college grad newbie is gonna sidestep the AMC headache and leapfrog right into this land of milk and honey?

 

[Delta85]

This won't happen, because of the high barrier that is being set. The reason there are so many appraisers in the business is because of the incredibly low barrier to entry in the past, along with the guarantee of quick money. If there was no flood of CGs in when barriers were set incredibly low, it is completely unreasonable to assume there will be a big flood when barriers are set very high.

Cart before the horse IMO. People will not spend 4 years in college to get into this racket until things change top-bottom. We'll have to wait until the CR is extinct and the business changes.

 

[The Warrior Monk]

And I'm to believe a college grad newbie is gonna sidestep the AMC headache and leapfrog right into this land of milk and honey?

There have always been appraisers that went straight to commercial. It was nothing unusual when I started.

A CG trainee is obviously going to have to work with a CG supervisor. CGs typically don't target AMC work because they don't do it themselves and it not profitable to split the fee.

 

[The Warrior Monk]

Where is this so called non GSE work and how come SO many appraisers of various experience and knowledge can't seem to find enough of it to make a living?

It's takes time, effort, and focus.

Cart before the horse IMO. People will not spend 4 years in college to get into this racket until things change top-bottom. We'll have to wait until the CR is extinct and the business changes.

You're arguing for argument's sake. You're saying nobody will come into the business and there will be a flood of CGs. How exactly does that happen?

Pick a coherent train of thought and stick with it.

 

[Michigan CG]

Eventually that would lead to an oversupply much like we see on the CR side and the same situation will develop on the CG side. .....................Lack of work and piling debt. will make anyone accept a less than c/r fee.

There is only an over supply of CG appraisers if the CG appraisers train people. Look at the historical number of CG appraisers and you will see a flat line that will start to decline soon. The phone calls used to be numerous:

"Will you help me get my hours to be a CG?" Nope, but thanks for calling.