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The coming appraiser shortage

By
Real Estate Broker/Owner with UNcommon Homes

Sales are slow now and appraisers are keeping up with the business.  What happens in 2,3,5 years?  Becoming an appraiser is now more difficult that ever.  165 hours of specialized education, plus many states now have an Associates degree requirement, 2000 hours of experience, licensing fees, low pay, etc... make it less desirable to enter the business and the current appraisers population is shrinking and aging.

In 2013, 2015... when sales take off again - pent up demand will outweigh the fear of buying - appraisers will be overwhelmed with requests and the system will bog down.

Be prepared.

Be ready to help your appraiser - anyway you can to expedite your appraisal.

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You’ve sold the home.  You got the price your sellers wanted.  Now what?  The appraiser calls, don’t panic, you’re prepared – or are you?

Here are a few tips for you to assist the appraiser and ensure a smooth path to closing.

Make every effort to be available to the appraiser for the requested inspection date or make sure he has convenient access.

If you attend the inspection do not distract the appraiser during the inspection.

Advise the appraiser of all the homes, you, your office and competitors have sold in the neighborhood.  Let him know YOU are the expert in the neighborhood [even if your not].

Appraisers want statistics and FACTS regarding values, amenities, neighborhood and market area data.  Provide a highlight sheet of all pertinent patent and latent information about the house, i.e. furnace updated, roof replaced, electric upgraded etc…

Provide the sales contract with all addenda and agreements.  Appraisers must consider ALL value-influencing factors.  Undisclosed terms or conditions could adversely influence the reliability of the appraisal report.

Provide a copy of the current deed.  The appraiser needs to know the exact legal description, how title is held and any encumbrances, restrictions, covenants and easements that may affect value.

Providing a site drawing with location and house dimensions is also very useful.  With the site plan, the appraiser can confirm the legal description, lot size, location in or near flood zones and the square footage of the dwelling.

Provide a recent tax bill.  Again, this document will corroborate the legal description, states the annual taxes and occasionally provides the site size.

Provide the appraiser at least three relevant sales – don’t just give him the highest sales you can find.  Remember, he has access to all the data and can corroborate whatever you give him.  If your sales aren’t relevant you lose credibility and the appraiser may not rely on your expertise.  Try to find relevant sales less than 90 days old; you can still supply sales up to six months old.  You should also provide any pending sales and several active listings.  Sold, Pending and Active listings are ALL valuable tools to the experienced appraiser.

Any other information you have floor plans, condominium documents, local developer plans, home inspection reports etc…  all help the appraiser reach accurate conclusions and enhances the opinion of value.

Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

There are still appraisers exiting the industry.  With all of the added requirements, many are choosing to pursue opportunities other fields.

Nov 23, 2010 12:42 PM