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How to Level Up as an Appraiser

By Conrad Meertins Jr.

Excerpts: The key is not the letters but the competency or skill. For example, are you competent to prepare an entire appraisal from start to finish? You might answer, “Absolutely!” But what if the appraisal form was completely blank with no boilerplate text? Do you still feel the same level of assuredness? What if you could not use the URAR form at all, but still had to produce an appraisal report that could stand up in court? Are your legs shaking? These questions help us to start to gauge our current level.

The three levels that we are going to discuss are “Beginner,” “Intermediate,” and “Pro.” Now, we could go deep and say that there are levels within the levels, but for now we will keep it simple and explore these three main levels. Some view each level as a stepping stone, and some view each level as a permanent parking space. It’s your choice which level you choose to pursue. The goal here is for us to evaluate which level we are at and determine which level we want to achieve.

Level 1 – Beginner

This is where we all start. There is no shame in this level. Depending on how you were trained, at the beginner level you typically view appraisals as forms — forms with checkboxes to be checked or left blank. If all the right boxes are checked and your report is signed with a value, mission accomplished!

Level 2 – Intermediate

At the intermediate level, you realize there is more to appraising real estate than checking boxes. Here is where you provide more explanations. If you say the market is stable, perhaps you add a sentence or two to expound on that. If you say that comp #1 was the best comp, you add a sentence explaining why. If you don’t adjust for the subject being on a busy road, you add a sentence about the neutral impact of the busy road and a comparable to support that conclusion—before being prompted to do so by the underwriter.

Level 3 – Pro

There is a subtle difference between Level 2 and Level 3. But one indicator that you have crossed the line from intermediate to pro is understanding how all the pieces fit together. For example, you understand that you do not need a form to produce an appraisal.

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My comments: Hybrid Appraisals are coming fast for lender appraisals, when any “human” appraisals are done. Full appraisals that Level 1 and most Level 2 appraisers cannot do will be done by Level 3 appraisers. I am writing two long articles for the November issue about Hybrid Desktops and Property Data Collectors. Both positive and negative sides for appraisers. If you want to continue to do AMC appraisals, this is an option.

What if you don’t want to do either one? If you have done AMC lender appraising only, you only appraise homes that conform to GSE requirements. You have a low skill level.

If I did lender work now, I would be in the “top tier” to be called when other appraisers said no. For as long as I have been appraising, lenders had special lists for the tough ones, or for a valuable bank client that borrows money from the bank and has large deposits.

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NOTE: Please scroll down to read the other topics in this long blog post on  retirement, USPAP 2024 Changes, school district app, unusual homes, mortgage origination and more!

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