Real Estate by Debbie Reynolds: September 2016

Is the Future for Appraisers at a Crisis Level?

The Future for Appraisers and Real Estate

AppraisersI had a robust conversation with a long time appraiser about the future for the appraisers in the real estate industry. The appraiser has been appraising for many years and plans to continue another dozen years or so. He serves on the state appraisal board. He loves what he does. He sees the industry nearing a crissi level.

There is a current trend where appraisers are declining assignments and picking and choosing what work they will do. That is leaving a big void where some appraisals are being declined and ignored. The appraisals opportunities are so plentiful because of the good real estate market that the appraisers can decide which assignments they want.

I am experiencing this first-hand on many of my sales where it is taking 3 to 4 weeks to get an appraisal back to the lender. I can see that it will get worse. Ultimately, this is hurting the consumers both buyers and sellers.

The appraiser identified several reasons that the future is muddled and that the industry needs to change. I think these reasons are valid and if free enterprise is not allowed to reign, then we will see even more serious consequences in the coming years.

  • Appraisers are aging and retiring creating fewer doing the work.
  • There are not as many entering the business as in years past.
  • It takes a college degree to enter into the business. This means that the field is competing with many other fields but without the advantage of a corporate benefits package behind it.
  • Many are graduating college with huge education debt and they need a high paying job to help to make the student loan payments.
  • An appraiser has to apprentice for 2 years before they can go out on their own. Experience appraisers that are training the newbies cannot pay but a limited amount for this inexperienced help. Paying $10-15 an hour is all they think the service of this apprentice is worth at this stage of the game. It is hard for a newbie to live on this.
  • Some experienced appraisers do not want to spend their time training a new recruit. It bogs them down.
  • After a trainee completes the 2 years of apprenticeship, they still have years ahead trying to establish a client base and earn a reputation to be able to make a good living.
  • Meantime,  professional fees, operating expenses, continuing education all have to be invested in. 
  • Management companies are taking a percentage of the appraisers fees because of the arms length separation from lenders.
  • FHA and VA appraisal fees are fixed. They have not increased in response to demand in the marketplace.
  • Conventional and commercial appraisal work allows the appraiser to bid on the project. This creates a realistic fee based on supply and demand.

What does the future hold for the appraisal industry? I think it will sort itself out but in the meantime we will see some shortages especially if the real estate market stays vibrant. Now if if should go into decline, then the pressure is off and the appraisers will have less work and be glad to get as much of it as they can. It will forestall the crisis of the lack of new appraisers coming into the business but it is not a long term solution.

The Future for Appraisers and the Real Estate Industry. Are We Nearing a Crisis Level?


 Centruy 21 Platinum Properties2130 Wilma Rudolph Blvd.

Clarksville, TN 37040

When you need Real Estate services in Clarksville TN

                  it would be my pleasure to assist you!                             

Debbie Reynolds
"The Real Debbie Reynolds"

Check out all Clarksville TN Real Estate on My Website

931-771-9070 Office | 931-320-6730 Cell

Clarksville TN Homes 


 Google Plus       Follow me on YouTube       


Comment balloon 54 commentsDebbie Reynolds, C21 Platinum Properties • September 28 2016 08:02PM
Is the Future for Appraisers at a Crisis Level?
The Future for Appraisers and Real Estate I had a robust conversation with a long time appraiser about the future for the appraisers in the real estate industry. The appraiser has been appraising for many years and plans to continue another dozen… more
What's My Stones Manor, Clarksville Home Worth? September 2016
Stones Manor Clarksville TN Home Values - September 2016 Stones Manor has been busy with homes sales and several homes have sold and others are under contract. The active listings are decreasing. There is one custom home being built and other new… more
New on Market 123 Vivian Dr. Clarksville, TN
Now Available 123 Vivian Dr. Clarksville TN 37042 The seller has the finishing touches on this home and boy does it look like new. Just wait until you see the gray-tone finishes and on-site finished hardwood floor and new carpet in the bedrooms… more
Another Foreclosed Home is Now Sold in Clarksville, TN
2401 Green Acres Dr. Clarksville Now Closed This HUD home has closed and the buyer got a great deal. The house was in fairly good shape with a remodeled kitchen and hardwood floors. It has a good roof and new windows. It sits on a big corner lot… more
What Is My Meadows of Hearthstone Home Worth? September 2016
Meadows of Hearthstone Clarksville TN September Market Report Why Do Folks Like Living in Meadows of Hearthstone? Meadows of Hearthstone has one of the best location being about 5 minutes from Governors Square Mall and I-24 at Exit 4. Plus in just a… more
Serendipity Sundays - I See Stars
While doing some window shopping on a recent trip, I found these stars in a storefront window. Unfortunately the store was closed and I couldn't go inside to get a closer look. These stars were lit inside and it made them even more beautiful and… more
Do You Know Who Your Neighbors Are?
Many of Us Don't Know Their Names and Only Recognize The Vehicles They Drive Coming up on September 28 is National Good Neighbor Day The busy lives we lead keep us from getting to know our neighbors like we should. In this day and time it is more… more
Benefits of Attending a State Convention
The Tennessee Association of REALTORS® had their state convention last of week in Charleston, SC. It was a beautiful venue and because it was out of state at a historic place with a beach, the attendance was the best it has been in several years… more
Is There Such a Thing as a Perfect House?
On the Search for the Perfect House When meeting many first time home buyers they tell me they want to get it right. They want ot find the perfect house. The buying process is somewhat intimidating but these excited buyers are out to find the… more
122 Bogard Ln. Clarksville TN Now Closed
! 22 Bogard Ln. in City Condos Is Sold This quality condo has now closed and the buyer was happy to be gaining so much more space and an excellent location. These pretty townhomes sit high above the Cumberland River near the Downtown area of… more