Their numbers are dwindling.

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?