Special offer

What is the biggest shortage we should be concerned about?

By
Real Estate Agent with Berkshire Hathaway HomeServices California Properties 01238708

Most Realtors across the country have been complaining about shortage of inventory. Needless to say I have been part of this group. Hard to sell a property when there are 20 plus buyers fighting over the one listing, of course unless you are the listing agent.

 Now with that said, we used to complain about Appraisers. When the government got involved we could not talk to them, then they were in a pool and some were knowledgeable others were not. Some decided to retire it was not worth the aggravation and not making enough money because of the “pool” situation.

Then there were the dedicated ones, who hung in there until the climate, or lay of the land loosened up.

Now here is a new twist I would like to share with you:

The fact is we are on the verge of a major appraiser shortage unlike any I have seen in my 20 + years in the business. At a time when the average age of today's residential appraiser is in the late 50s and growing older, the total number of residential appraisers is falling even as mortgage origination volume grows.

This is clearly a bigger problem than most people realize, something must be done. The Appraiser Qualifications Board (AQB), the leading body responsible for establishing credentials in the mortgage industry, agrees, and is proposing changes to its Property Appraiser Qualification Criteria.

These changes include eliminating the requirement for graduation from a four-year college and cutting in half the length of time a new professional needs to spend being mentored by a certified appraiser.

 

By far their biggest frustration is finding a committed mentor to work with the new professional appraisers. Since most appraisers work alone, there is little motivation for an experienced appraiser to take on a mentee as they will more likely than not become a competitor down the road.

 

Even if they were motivated, what time does a certified appraiser have to train someone?

 

Let's suppose for a moment that certified appraisers had the time and desire to train new candidates. Is mentoring truly the best way to learn the business? This may seem like a silly question, but the reality is that not all mentoring experiences are the same.

 

So what can be done? It is clear to me that a broad classroom experience that includes simulated lessons and perhaps even virtual reality can provide a more complete learning experience than the current, limited appraiser career path.

 

The appraisal industry could adopt many techniques-in fact, virtual reality and gaming systems can replicate almost every situation and experience an appraisal may confront on the job. Such training could incorporate real world scenarios, the latest technology tools and case studies designed to touch on primary appraisal principles and include frequent exams to test for proficiency.

 

 There is always value to gain from experienced professionals. So what are your thoughts about this subject?

 

If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at  http://www.endrebarath.com.  I am a Pet Friendly Realtor and I contribute a portion of my commission to local animal rescue organizations.

 www.endrebarath.com

George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Endre appraisers are facing the same problem we are seeing in the mortgage industry as well since licensing became a requirement in 2010.  Licensing was very much needed and I am all for it, but there is very few new LO's coming into the business.  Something needs to be done to recruit more LO's and maintain the standards in our industry.

Sep 21, 2016 10:14 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

This very subject came up last year in our continueing ed class.   What would be appraiser wants to earn such a small stipend for two or three years and what experience appraiser wants to give up part of their pay? It is not a good situation at all!

Sep 21, 2016 11:05 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Endre

Property appraisers have been over regulated just about out of business.

Good luck and success.

Lou Ludwig

Sep 21, 2016 12:50 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Yes Endre Barath, Jr. something must be done...get the government out of things they are clueless about.  Oh wait, that's just about everything to do with our day-to-day lives, isn't it? 

Sep 21, 2016 01:10 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Roy Kelley  you should be glad you are retired:), Endre

Sep 21, 2016 04:38 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dianne Goode  my point exactly, Endre

Sep 21, 2016 04:39 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Wayne Martin  indeed it is already high time....Endre

Sep 21, 2016 04:39 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kathleen Daniels  I was thinking Zestimates:))) just kidding,Endre

Sep 21, 2016 04:41 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Patricia Feager  that is part of the  problem, they have been fixing it....Endre

Sep 21, 2016 04:41 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dick Greenberg  appreciate to vote of confidence, Endre

Sep 21, 2016 04:42 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I am seeing it on almost every deal. The appraisers are overloaded and need a couple of weeks more over their usual time. It is causing delays in closing.

Sep 22, 2016 01:18 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Endre -- you're spot on with identifying "the lack of appraisers" as a concern. I'm not sure of the answer but it is certainly something that will need to be addressed in our industry.  Sooner than later.   

Sep 22, 2016 08:30 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

I just remembered -- last Friday, I met an appraiser -- he called the day before.  I had comps highlighted with important information versus the subject, a list of updates/dates of completion, a floor plan of the unit, HOA information and the purchase agreement(he didn't need).  He told me of the process and not to expect to see it quickly.  That Monday -- I received word that the appraisal was in --- just another reason why it's good to under-promise and over-deliver.   That certainly hasn't been the case this year but I do love these "nice" surprises.   

Sep 22, 2016 08:35 AM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Endre I was having this converstion a couple weeks ago with another Realtor.  This shortage will certainly hold up transactions.

Your suggest of adopting technology to replace some of the mentorship make sense.

Sep 22, 2016 02:49 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Hello Endre Barath, Jr.  Sorry I missed this one found it on a re-blog by Debbie Reynolds .  I have a closing in 12 days and no appraisal . I have been calling the selling agent and mortgage company for weeks complaining . The agent threw in an addendum making the sale contingent on the appraisal ... There are $2400 of repairs that also need to be done .. If the appraisal does not come in soon we will not be closing on time as I have stopped the repairs ...  I do not believe in our area there is a shortage of appraisers -- That is of yet      You are usually ahead of us .

Good post my friend surprised it was not Featured

Sep 25, 2016 10:21 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Endre, I closed on a transaction last month where it took three weeks to get an appraiser out. She was a no-show with the first attempt and once she inspected the house, it took two weeks for her to complete the report. It was pretty bad!
Your suggestions are great ones, something has to change because appraisals are becoming a great challenge.
This post should be featured!

Sep 25, 2016 10:54 PM
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

You are so right... and something needs to be done.... we are lucky to get a 2 week inspection time and report done by the end of the thrid week.  we are also having a shortage of surveyors and other vendors too

Sep 26, 2016 05:15 PM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I suspect the brokers, realtors will be ending up doing appraisers very soon. Needing a few hours of training, a sheep skin and ability to make a sketch.

Waive the apprentiseship and there will be 1,000,000 willing appraisers-realtors.

Oct 16, 2016 02:48 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

The realtors have been doing pmi removal, heloc, shortsale, reo  so why not use them to do what they have been doing? Never had regulation for loan before.

Oct 16, 2016 02:49 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

In rural areas of Oklahoma, getting a VA appraiser out may not even be possible.

Oct 18, 2016 09:57 PM