[google6082a909354c0682.html]

Real Estate Analysis and Commentary in WINTER HAVEN

Discussion Draft Regarding Changes to the Real Property Appraiser Qualification Criteria
March 22nd, 2016 9:08 AM

Here are the comments that I sent to Appraisal Qualification Board recently.

I like to provide some comments regarding changes in RE appraiser qualifications for entry into the profession that are being considered by the AQB.  I’ve been in the business almost 37 years.  We have continually heard of the pending doom with the coming of a shortage of appraisers.  It has never happened.  And indeed it has been just the opposite.  The ease by which someone can enter the business has provided many unqualified and unskilled individuals.  This in part has helped to drive down fees and make most of the residential appraisal business a cottage industry.  Here in Florida, the market is just beginning to recover from the oversupply of these “wanabee” appraisers which developed in the middle 2000’s.

 

The AQB needs to keep the requirement for entry bar at a high level so that only those who are truly qualified can gain entry to the business.  The economics of the business can only improve when the supply of appraisers is at a level that supports a profitable operation when trainees are included in the mix.  That is, when it is the profitable for the trainee and the supervising appraiser do business.  As it is today, the appraisal fees for many and requirements of the clients do not support a trainee/supervisor operation.  Now, I know that AMC’s enjoy being able to take a portion of the appraisal fee paid by the borrower for their operation.  That has to change if the appraisal business ever going to be viable in the future.  And it is only going to change when the number of appraisers is reduced to a level that forces full payment for the cost of doing business in a professional manner and includes the profitable use of trainees.


Posted in:General
Posted by Dave Hohman, ASA on March 22nd, 2016 9:08 AMPost a Comment

Subscribe to this blog

My Favorite Blogs:

Sites That Link to This Blog: