Number of Certified Appraisers on the Rise
Source: Appraisal Buzz
Excerpt: “Even with the myriad challenges in today's residential and commercial real estate markets, the percentage of appraisers with a certification is at an all-time high, according to Appraisal Institute research. However, because more than half of appraisers in the U.S. are age 51-65, and since many have left the industry in recent times, there needs to be a concerted and strategic effort to attract younger individuals into the profession.
The Appraisal Institute has analyzed the Appraisal Subcommittee National Registry data since 2006 using a consistent methodology, and the long-term trend is now clearer:
The number of appraisers continues to decrease at a rate of about 3 percent per year; Appraisal firms decreased the number of trainees dramatically over past two to three years; and The appraiser population could decrease 25 to 35 percent over the next 10 years due to age attrition and fewer new entrants....While the overall number of appraisers is decreasing, the number of certified general and residential appraisers is on the upswing.”
Comment: Interesting analysis. Well worth reading. Don't be “put off" by the AI promoting itself towards the end of the article. To read the article in full, click here.
I am now considering up grading from a Certified Residential Appraiser to General Certified Appraiser. I get different answers from different people on several of the requirements. For example some people tell me my upgrade work must be supervised by a General Certified Appraisers. Others tell me it is unnecessary. My state appraisal board says it depends what is required by the Appraisal Foundation. I have tried to real all their voluminous requirement but can not find a definitive answer to the question. What do you think.
You are correct when you say there is no direct definitive answer to this question in the USPAP. There is an answer in the just released Appraisal Qualification Board Q & A Vol.4, No.1 dated June 2012.
This is a summary of what it says:
1. Some states have specific requirements that cover this situation. Therefore the first then than any appraiser who is considering getting a Residential or General Certification is to check with your state to see what their specific requirements are. The simplest way to do this is to send them a letter asking what if any requirement you state has. I always prefer a letter to a verbal request as if some time in the future what you have done is questioned you can fall back on the letter to explain what you did or did not do. The only problem with this communication method is that some states take a very, very long time to answer appraiser inquiry letters. If this apply to you state you should make a verbal inquiry and when you get someone who will talk to you ask them if they have anything in writing that they can send to you.
The entire AQB Q & A Vol.4, No.1, June 2012 is available to download by clicking here.
Dear Mr. Harrison:
This is my first question for you. I'm a Certified Residential appraiser in MA and N.H. Can I just go to the govt. website to become FHA approved? Is it that simple? Could you advise me please? I enjoy your Revmag emails I receive.
Thank you in advance for your help.
John D. Devereaux
The FHA website: http://www.hud.gov/offices/hsg/sfh/appr/eligibility.cfm tells you in detail what you need to do to get on the FHA Roster of Approved Appraisers.
If that doesn't work, go to Google and enter the phrase "FHA Appraiser Roster". There is an application but is cannot be completed online. Your completed application must be submitted online, which means that you have to download the application and save it as a PDF, sign it and then scan it and send it back via email to the FHA.
Here are the highlights of the current FHA requirements:
1. You must be a residential certified appraiser or general certified appraiser.
2. You must NOT be listed on GSA's Excluded Parties List System (EPLS),
HUD's Limited Denial of Participation (LDP) list, or HUD's Credit Alert System (CAIVRS).
3. You must scan your state issued certification and send it with your complete online application.
4. Make sure that the ASC National Registry contains the correct information about your certification.
The $64-thousand dollar question is what happens next! Hopefully some of our readers will share their experience -- especially how long it took them to get on the FHA roster once they had applied.
Dear Mr Harrison:
Thanks for sharing the wealth of your knowledge and experience with all of us; we look forward to your publication!
My question: I am completing over forty years of successful activity as a Realtor. Now, at 87 years, the body is getting weary and many daily showings are tiring -- but the brain loves the business. I think I'd like to be a certified appraiser in the State of Ohio -- but at my age I'm not sure I could satisfy the apprenticeship requirement in a timely manner.
Your advice would be appreciated!
Name and email withheld by request
I am 80 myself, and will be happy if I make it to 87 and still can continue working! Frankly, I think it is a little late for you to be starting out as an appraisal trainee. However, with your background, have you ever thought of becoming a real estate consultant? You might start by offering your services to give some home buying advice, perhaps in a free seminar at your local library or civic center? There are also good opportunities for "seniors" like us in the Service Corp of Retired Executives (SCORE), where your expertise in real estate might be very welcome. SCORE is a national non-profit organization that counsels business owners and aspiring entrepreneurs. There are nearly 400 SCORE chapters throughout the United States offering counseling services to small businesses in all areas -- at no charge to the client. Find out more about volunteering for S.C.O.R.E. here: http://www.score.org/volunteer.html
Good luck -- and let me know what you decide to do.
I am a certified residential appraiser, and I, along with a couple other appraisal firms, would like to start up an appraisal management company. Being appraisers, and never having gone down this road before, we are not sure where to begin. Where do we find the information that is necessary to create an appraisal management company in order to meet all of the necessary requirements, and to be legitimate? Do you have any resources pertaining to this?
Thank you for any help you may be able to offer.
Each state has its own requirements for AMCs. You should start by asking someone on the staff of your state's appraisal commission how to proceed. I think you should also hire a lawyer to advise you.