Appraiser shortage could spring from education requirements

by Kelli Rogers22 May 2013

The barriers to becoming a certified appraiser could lead to shortages in the field, an industry professional has claimed.

“If a young professional is changing careers and looking to get into the real estate industry, the mortgage industry or the appraisal industry, there is a vast variance in requirements,” said Roger Beane, president and CEO of LRES Corp., an appraisal management company. “The strictest of those requirements is to become an appraiser.”
 
He foresees a possible shortage in appraisers in the future, which could eventually create a smaller pool of appraisers to call on for a valuation.
 
Employment of appraisers and assessors of real estate is expected to grow 7% from 2010 to 2020, slower than the average for all occupations, according to the U.S. Department of Labor and Statistics. 
 
Beane says certification generally requires college-level education and extensive apprenticeship work. 
 
The Appraiser Qualifications Board (AQB) of The Appraisal Foundation establishes the minimum education, experience and examination requirements for real property appraisers to obtain a state license. Currently, experience requirements for the Certified Residential and Certified General Classifications are 2,500 hours and 3,000 hours of apprenticeship, respectively.
 
Those who complete the education have fulfilled rigorous education and experience requirements and must adhere to strict standards and professional ethics, Beane said, but whether enough people are completing the education remains to be seen.
 
“My concern is what the industry is doing to encourage and create opportunity for young people or for people looking to get into the business,” Beane said.

COMMENTS

  • by Dan Peterson | 5/29/2013 4:04:48 PM

    The article implies decreasing the competency standards of the appraiser as the solution. That seems like it would only be a good idea from a AMC perspective where the more appraisers there are chasing after work the smaller the fee the AMC has to pay the appraiser. Perhaps instead of dumbing down the appraisal profession a more sustainable system would be to remove the AMC price shopping incentive that ensures the AMC brings the lender the cheapest appraiser in town. I would suggest doing that by paying the AMC a fixed rate based upon what he brings to the table. AMCs are the cause of what ails the appraisal profession, not that appraisers need less training.

  • by Facts | 7/9/2013 11:16:17 AM

    The AMCs are the only ones complaing about the increasing standards to become a appraiser which is a good thing. The AMCs want as many appraisers in the business as possible. The AMCs send out appraisals for 275 and want as many appraisers in the business so some one with low srandards will bite. THIS IS A PROFESSION. The higher standards would have helped prevent the real estate melt down. The authors of most of the articles complaing about College standards have positions at AMCs google their names or their make money in some type of way on appraisers back. The author Greg Stepbens has a serious conflict of interest!!!!!!

  • by Facts | 7/9/2013 11:48:37 AM

    The author actually said that we need to open up ways for more appraisers to become Certified faster and lenders should allow trainee appraisers to do the work That sounds like AMC talk to me!! Reverse the rules when fees are rising. FEES IN NY HAVE RISEN OVER THE LAST YEAR TO RESPECTABLE LEVELS. Now they want to change the rules. This is a profession.

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