Why The Long Appraisal Time? (What You Want To Know Wednesdays)

Currently, we are experiencing an appraiser shortage, meaning there aren’t enough appraisers to meet the demand for appraisals. The housing market is hot right now, but the appraiser pool is cooling down. As a result we are experiencing long turnover times and higher fees. Some appraisals can take up to 21 days to complete!

The numbers of appraisers decrease yearly, especially because most of the appraisal field is composed of 51- 65 year olds. Several appraisers are heading on to retirement. According to Mortgage Orb, “One statistic from the Appraisal Institute seems to strongly indicate that the industry is now set up to experience a shortage: About 62% of appraisers are age 51 or older, while 24% are between 36 and 50, and only 13% are 35 or younger. “ Regulations are making it hard for anyone to enter the appraisal field. To become a certified appraiser you must:

• Have a bachelor degree. It takes two years of college to become a licensed appraiser, but that limits the properties that you can evaluate.

• An appraiser trainee, under direct supervision of a certified residential or certified general real estate appraiser, is permitted to appraise any property type the supervising appraiser can. To qualify for a trainee license, 75 hours of education are required, and the trainee must work under the supervision of a certified residential or certified general appraiser in good standing.
• Licensed real property appraisers are permitted to appraise non-complex one- to four-unit properties with a value under $1,000,000 and complex one- to four-unit residential properties with a value under $250,000. To qualify as a licensed real property appraiser, 150 hours of education are required - and each is given credit for up to 2,000 hours of experience per 12 months. Certified residential real estate appraisers are permitted to appraise both non-complex and complex one- to four-unit properties regardless of their values. To become a certified residential real estate appraiser, 200 hours of education are required, as well as 2,500 hours of experience in a 24-month period.

• Licensed real property appraisers are permitted to appraise non-complex one- to four-unit properties with a value under $1,000,000 and complex one- to four-unit residential properties with a value under $250,000. To qualify as a licensed real property appraiser, 150 hours of education are required - and each is given credit for up to 2,000 hours of experience per 12 months. Certified residential real estate appraisers are permitted to appraise both non-complex and complex one- to four-unit properties regardless of their values. To become a certified residential real estate appraiser, 200 hours of education are required, as well as 2,500 hours of experience in a 24-month period.
• Certified general real property appraisers are permitted to appraise all types of real property regardless of value. To earn a certified general real property appraiser title, one must complete 300 hours of education, as well as 3,000 hours of experience during a 30-month period.

 

Lenders are also hesitant to work with appraisal trainees as the regulations do not explicitly say that Lenders can accept their work. These are just some of the requirements.   There are also rumors of full automation; using drones for appraisals. Some could say that going into the appraisal field would be a bad career move.

As your Lender we are trying our hardest to combat the long appraisal time frames and keep providing our clients the exceptional service that we are dedicated to providing, but unfortunately some situations are just out of our hands.

For more information read this article that Mortgage Works AMC Staff Review Appraiser, Danielle Chavez, wrote about the changes in the appraisal industry.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.