Photo credit: Sirenz Lorraine
The Allterra Group, whose holdings include Appraisal Buzz, Collateral Risk Network, Valuation Expo and Allterra Online, released the 2015 National Appraiser Survey earlier this year. The survey was filled out by over 2,000 appraisal industry professionals and represented their views on the constantly changing profession and its future.
Who are you?
The surveyed appraisers reported that 80.2 percent of them conducted residential appraisals, compared to only 4 percent doing commercial appraisals. The appraiser with the longest tenure started working in 1949, while the appraiser newest to the profession started in 2014. The average start year for the surveyed appraisers was 1991 and 1986 was the most reported start year. The majority, 65.5 percent of surveyed appraisers do not belong to a professional organization.
When asked how many appraisals were completed in the past 12 months, the least amount reported was 40, while the most amount was 659. The average amount of appraisals completed in the past year was 231 and 200 appraisals was the most reported number.
Approximated annual gross income varied from $15,000 to $500,000, with the average being $83,000 and the most reported income figure being $100,000.
When asked how much they would charge in an ideal world for an average 1004 MC appraisal based on the amount of work required and time consumed, the amounts varied widely, from $200 to $2,000. The average amount the appraisers would charge is $448 and the amounted cited the most, was $400.
Over half of appraisers, 51.3 percent, reported that their revenue decreased over the past 12 months, while 13.3 percent cited that revenue increased and 35.7 percent reported that their appraisal revenue stayed the same.
The pressure to change the condition of the subject property was reported by only 4.2 percent of surveyed appraisers, while 20.5 percent reported that they were sometimes pressured and 75.3 percent said that they did not experience pressure to change the condition of the subject property. The pressure to inflate values was reported by 11.8 percent of surveyed appraisers, 31 percent were sometimes pressured and 57.2 percent did not experience pressure to inflate values.
A majority of appraisers did not find the USPAP to be well-written and easy to comprehend, 61.1 percent versus 38.9 percent.
When asked if they’ve been placed on a blacklist without being notified since the advent of HVCC/AIR, 8.3 percent said they were blacklisted, 38.5 percent said they were not and 53.2 percent said they were not sure.
Nearly 60 percent of surveyed appraisers would contribute to a shared property database if they were compensated for the data, 37.8 percent would not and 7.4 percent was not sure.
A majority of surveyed appraisers, 58.2 percent, find their primary client’s Reconsideration of Value (ROV) process fair, while 41.8 percent do not.
A little over ninety-seven percent of surveyed appraisers personally measure the subject property and do not rely on public records or plans, while 2.7 percent don’t, citing that they don’t have time. A majority, 91 percent, drive by their comparables and take photos, while 9 percent do not, relying instead on MLS or aerial photos.
When asked if their clients provided appraisers with a copy of their policies and guidelines, 82.5 percent report yes and 17.5 percent said no.
Regulation and compliance
The idea of increased regulation and enforcement was met with an overwhelming “no”. 38.3 percent said, “no, we have plenty of regulation”, 19.3 percent said, “no, we need less of both”, 35 percent reported “no, we need better enforcement”. Only a total of 7.5 percent of surveyed appraisers reported being in favor of increased regulation and enforcement, with 2.4 percent saying, “yes, we need more regulation and 5.1 percent reporting “yes, we need more of both”.
A clear majority, 60.6 percent, do not think the HVCC and subsequent Appraisal Independence reforms have been positive for the appraisal profession. 20 percent say yes and 19.4 percent are unsure.
State appraisal boards get high marks among surveyed appraisers, with 60.9 percent reporting that their state board does a good job of enforcement, while 39.1 percent do not think so.
The appraisal profession and its future
A majority, 63.6 percent, think Dodd-Frank has negatively impacted the profession, 27.6 percent feel it’s had a neutral impact and 8.8 percent think Dodd-Frank has had a positive impact on the appraisal profession.
When asked about being optimistic on the future of appraising, 74.6 percent reported they were not optimistic, while 25.4 percent were.
Most surveyed appraisers would not train and mentor someone joining the profession, with 75 percent saying they would not, 22.2 percent saying they would and 2.8 percent was not sure.
Whether competency exams would help lenders and AMCs differentiate surveyed appraisers from their competitors, 69 percent didn’t think it would matter, 25.7 percent believed it would and 5.3 percent was not sure.
Industry leading valuations services
PEMCO Limited is poised to provide the highest level in valuation services and appraisal process management. PEMCO Limited’s team of reviewers respond to ROVs before sending them to the appraiser, making it unlikely that the appraiser would have to respond. PEMCO Limited pays reasonable fees to its appraisers, which invariably results in a higher standard of appraiser and appraisal product.
For Lenders and Appraisers:
Allterra Group, LLC. National Appraiser Survey 2015