It takes a longer time period to get one done.
The costs have increased while appraiser compensation has decreased.
So, what’s happening and why is there a shortage of appraisers?
The National Association of Realtors recently took a survey and this is what was reported:
“Among the contracts that had a delay to settlement, 22 percent were from appraisal issues. Survey respondents blamed appraisal-centered delays on the shortage of appraisers, valuations that were not in line with market conditions, and “out-of-town” appraisers who were not familiar with local conditions.”
While there is no quick fix, here are some reasons why we are seeing fewer appraisers:
- Training. It’s expensive, and an appraiser trainee must have 2000 hours of apprentice training (that’s almost one year based on 40 hours per week) with a fully licensed appraiser.
- Fully licensed appraisers can’t make any money if they have to split the appraisal fee with a trainee.
- Trainees make very little money—an average of $27,000—during their training period.
- Appraisers get lower compensation if the appraisal is ordered through a management company.
- Appraisers will turn down assignments if REQUIRED to provide a quick turn-around time
- The average tenure of an appraiser is 22 years and they are not being replaced by younger appraisers.
- The average tenure of a NEW appraiser is 5 years.
- Appraisers have the added expense of keeping up with new regulations.
What types of appraisal issues have you been experiencing?