Are Appraisers Going Extinct?

Is the real estate appraisal business in jeopardy of going extinct? With all of the changes over the last few years, including appraisal management companies, tighter lender guidelines and increased education requirements to receive appraiser certification, many in the industry believe the answer is yes. Many long-time appraisers have left the industry, leaving fewer qualified to apprentice incoming trainee appraisers. Many real estate appraisal management companies and lenders will not accept an appraisal report with a trainee’s signature. This may eventually lead to rising costs to the borrower. With a scarce number of appraisers to choose from, borrowers, lenders and AMCs will be at their mercy. Aside from higher fees to borrowers, there is a fear of having no choice but to utilize appraisers who complete sub-par work in areas where there are no other options. Maybe it’s time for lenders to allow appraisal management companies and appraisers to utilize trainees, so the profession has a better chance at thriving and remaining competent.