Will there be an appraisal shortage in the future?

www.appraisalport.com poll

With few new people currently entering the appraisal profession, do you foresee a shortage of appraisers at some point?

Yes, in the next few years. 2,705 votes 47%
Yes, but it’s probably years down the road. 1,603 votes 28%
No, I don’t think we will see a chronic shortage. 1,137 votes 20%
Not sure. 253 votes 4%

Total Votes: 5,698

Until appraiser licensing 20 years ago, most residential appraisers worked for lenders. When it was busy they hired armies of trainees. When work slowed down many were laid off. With the cyclical fees in AMC work and many lenders not allowing trainees to sign appraisals, it is not financially feasible for fee appraisers to train.

I assume that lenders will allow trainees to sign at some time as the inevitable cycle of weak vs. strong regulations shift. I have no idea when this will happen. This is the easiest way to fix the problem. Low AMC fees when business is slow is more complicated as it reduces the financial incentive for fee appraisers to hire trainees and give them part of the fee.

Beer can house in Houston, TX

Excerpt from article:
At first, all John Milkovisch wanted in 1968 was a covered patio where he could drink his beer at the end of the day. But a bigger idea was brewing. For years, he had been saving his empty beer cans.

“While I was building the patio I was drinking the beer,” in an interview in 1983. “I knew I was going to do something with them aluminum cans because that was what I was looking for … but I didn’t know what I was going to do.” (Milkovisch died in 1988.)

Over time, Milkovisch’s love of beer and work with his hands — he was an upholsterer — fused into one project. In his retirement, he covered his entire home with beer cans — all different parts, in various shapes and functions. It’s that more than 50,000 cans were used.

http://www.npr.org/blogs/thesalt/2013/07/31/207384768/for-the-love-of-beer-how-empty-cans-made-a-house-a-home?utm_source=npr&utm_medium=facebook&utm_campaign=20130731

My comment: This would be a tough appraisal!!!

New Fannie Mae Guidelines 7-30-13

New Fannie Mae Guidelines – 7/30/13

Announcement
https://www.fanniemae.com/content/announcement/sel1305.pdf

Selling guide
https://www.fanniemae.com/content/guide/sel073013.pdf

Many thanks to Montana appraiser Doug Smith for this info. Here’s what Doug says:
“Not much new but lenders have to put in QC steps that may increase the review situation. Fannie Mae stated that they have a right to exclude appraisers from appraisals sold to them. I think this is the first time they have put this in writing.”

My comment: It is always good to refer to the most recent version of th Fannie Mae Guidelines. The Announcement has a summary of the changes. I remember back in the “Stone Age” prior to HVCC in 5/09 when all we had to worry about was Fannie Mae Guidelines. Now, every lender seems to have lots of changing requirements that dramatically extend what appraisers have to do.

Appraisal Today newsletter

Do your appraisal fees reflect the value of your work product?

www.appraisalport.com survey

Do you think the fees you currently accept are indicative of what your work product is actually worth?

Yes, at least in most cases. (15.2%) 826 votes
Not yet, but they seem to be headed in the right direction. (33.6%) 1,821 votes
No, they would have to increase dramatically to meet the current scope of work. (51.2%) 2,774 votes

Total Votes: 5,421

My comment: My fees have always been too low and I don’t even do any AMC work! I just can’t seem to get my billings up to my $100 per hour minimum. Darn!!!

Appraisal Today newsletter

How much vacation time do self employed appraisers usually take per year?

www.appraisalport.com Poll Results, June 17, 2013

How much vacation time do you usually take per year?
None 893 votes 15%
1 week or less 2,251 votes 39%
2 weeks 1,624 votes 28%
3-4 weeks 712 votes 12%
5-6 weeks 128 votes 2%
More than 6 weeks 107 votes 2%
I’m partially retired 128 votes 2%

Total Votes: 5,843

My comment: I remember 26 years ago, when I was a corporate employee with 3 weeks vacation, plus sick leave. Of course, I was not a good employee. I am just not suited for working for someone else. But, I do miss those regular paychecks, vacation, benefits, etc. etc.