DOES REAL ESTATE APPRAISAL HAVE A FUTURE?

Does real estate appraisal have a future?  This question comes in to me all the time.  And it’s important! We’ve invested a lot of time and money to become appraisers.  Did we waste all that?  There are some who say yes to that question.  Generally, they point out the changes that are coming to real estate appraisal (or have come).  Then they point out the sacrifices to keep up with these changes are just too big.  Those changes are coming at us just too fast.  The learning curve is just too long.  These appraisers should transition out of the business

So, does real estate appraisal have a future?  Of course it does.  It will be different than it is now, though.  Because UAD 3.6 demands greater reporting, it also demands more thorough appraisals.  More attention to details.  Less boilerplate.  Fewer unsupported assumptions about adjustments, market trends, and effective age.  Yet the professional education and training behind those demands will make those who stay in the business better appraisers.  How is that a bad thing?  It is also likely appraisers will need to make some transitions.  This means transitions to commercial work, non-lender work, court work, divorce work, tax appeal work, etc.

Yes, all things considered, real estate appraisal has a future.  But the hallmark of that future is one of change.  Is what you read on the appraiser-oriented websites, etc. accurate?  If it is, then within 24-months of this podcast, there likely will be fifteen percent fewer appraisers than there are now.  There likely will be fewer folks getting into the business.  And those who stay are likely to be better trained.  Why?  Because the cookie-cutter house in the cookie-cutter subdivision will be an assignment of the past.  Make sure you have proper E&O insurance and proper legal counsel.  Those requirements will not change.