FEATURE
APPR AISALS IN THE NEW WORLD By John Tedesco, Appraisal Nation
T
he appraisal industry has
lenders, and over 6,000 independent
The second biggest generation, Baby
been under a great pressure
mortgage brokers as we perform
Boomers, are starting to downsize.
for
now.
150,000 residential and commercial
Both the selling and buying in their
Increasing demand, shrinking pools
appraisals annually across all 3,143
transactions typically require an
of aging appraisers, evolving data
counties in America. We also work
appraisal; granted large portions of
and technology, growing regulations,
close with federal regulators, state
the selling may overlap with many
and difficult entry barriers into the
licensing boards, numerous industry
of these Millennial home buyers.
profession, are just a few of the
associations, along with institutional
Additionally, interest rates are at an
items that have contributed to the
and private capital investors to
all-time low driving a refi boom and
current climate over the past 10
understand key critical needs and key
requiring valuations in many cases.
years.. Now add the impact from the
touchpoints impacting the industry.
Covid-19 pandemic and the industry
First let us talk supply and demand,
The 2019 Fact Sheet from the
challenges expand even further. The
the key pressure on the industry. With
Appraisal Institute (AI) highlights
impact is being felt by mortgage
Millennials becoming the largest
79,000 active appraisers in America.
lenders and borrowers across the
generation
history,
Less than 50% of those are active
nation and they will need to navigate
housing demands are at an all-time
residential field appraisers; that
these concerns in the new world.
high both for the Single Family and
means many others may work for an
Multi-Family
as
organization like ours doing quality
As one of the premier mortgage
well as first time homeowners. The
control or review work, may serve
service providers in America for real
National
as Chief Appraisers for public and
estate valuations we work with over
is
new
private organizations, work directly
26,000 appraisers, 1,400 national
homeowners over the next 10 years.
on staff for a lending institution, or
26
several
years
in
American
Rental
Association
predicting
12
markets of
Realtors
million
