Are you finding it hard to hire an appraiser in Pennsylvania? You are not alone. Most appraisers are booked for three weeks in advance and are busy working for higher-paying assignments and clients. There is a shortage of New Jersey appraisers, too; in fact, seems to be a nationwide concern.
The number of professional and appraisers has been on the decline since the real estate market collapse in 2007, and it hasn’t recovered. The Appraisal Institute Research Department says that the population of active appraisers in the US has continued to drop by around 3% yearly. Appraisers are also getting old, with 62% of them now over the age of 50. Younger appraisers—those under the age of 25—make up only 1%.
The strong demand for appraisers because of the active real estate market and low interest rates is also contributing to the shortage of professional talent. Despite this, however, appraisal fees have failed to keep pace with inflation. You would think the high demand and low supply would increase appraisal prices to balance the market, this hasn’t happened. Many lenders and AMC clients still prefer to pay the rates they did 10 years ago.
Reportorial requirements in the real estate appraisal industry have also increased following the most recent market collapse. Reports these days are twice as long (at least) as the same reports prior to 2007, despite advancements in technology. Appraisal liability has likewise escalated since 2007. Real estate appraisers have, sadly, increasingly become targets for lawsuits when homeowners fail to pay their mortgages.
And then there’s the fact that it is now more difficult to become a real estate appraiser than ever before. To make money in this profession, one must at least be Certified Residential and possess a bachelor’s degree plus 2,500 hours of experience over at least two years. Those who want to become professional appraisers have to work as a low-paid appraiser’s assistants for a couple of years—a difficult hurdle for fresh graduates who are paying off student loans.
Hiring an Appraiser
All this said, it is still possible to hire appraisers from firms that specialize in providing commercial real estate valuations to private clients, lending institutions, law firms, and developers. The best companies have been providing full-service appraisal and valuation services to multi-industry clients for decades. You can count on them for commercial and residential real estate appraisals, as well as valuation of machinery assets, independent business valuations, and even settlement valuations for estates and divorce. Choose real estate appraisers that value personalized service. They should be committed to providing professional and efficient services. The best New Jersey appraisers consistently rank highest in the industry.