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Appraiser Shortage Sparks Sales Delays

Appraiser Shortage Sparks Sales Delays

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The number of appraisers is rapidly shrinking, which is causing delays in closings and possibly even costing your buyers and sellers money on their way to settlement, CNBC reports.

Since 2007, the percentage of appraisers has fallen by 22 percent, according to the Appraisal Institute. Further, more than 60 percent of appraisers are over the age of 50, sparking concern that not enough new recruits are joining the ranks to replace those who retire. And it’s having a real, measurable impact on transactions. The percentage of appraisal-related issues delaying closings surged by 50 percent from April to September of this year, according to a tracking survey from Campbell/Inside Mortgage Finance.

“The appraisal shortage is massive. You’re seeing significant delays, you’re seeing cost increases, you’re seeing rate [locks] expire,” Brian Coester, CEO of CoesterVMS, a national appraisal management company based in Rockville, Md., told CNBC.

Some in the industry lay the blame for the the decline in working appraisers on regulations enacted in 2008 by Fannie Mae, Freddie Mac, and the FHA, as the agencies sought to safeguard banks and borrowers.

CNBC notes they changed the rules so that appraiser apprentices must be supervised onsite by a licensed appraiser for full inspections. As a result, many companies no longer see a need to pay apprentices. Apprentices must accumulate 2,500 hours of appraisal experience within two years as an apprentice in order to become an appraiser. Without willing trainees, Coester says appraisers are struggling to keep up.

Source: NAR – Real Estate News
Appraiser Shortage Sparks Sales Delays

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