Issue link: http://viewer.e-digitaledition.com/i/958269
What Does It Take to Become an Appraiser? ONE CLEAR SOLUTION TO the appraiser shortage is to recruit and train new talent. But what does it take to get there, and is the process one that entices people to the industry? To start a career as an appraiser, one must begin as a trainee — but to become a trainee, a minimum of 75 hours of education is required. Set by the Appraiser Qualifi cations Board, this course work covers principles and procedures, universal standards, and the basics of a trainee/mentor relationship. From there, trainees must: » Have or acquire an associate's degree, or complete 30 hours of college-level education » Complete 75 additional hours of course work » Complete 2,000 hours of work experi- ence supervised by a licensed appraiser » Pass a state real property appraiser exam » Submit a license application to the real estate appraiser's board in the state they wish to practice Eventually, many licensed appraisers will also choose to become certifi ed residential appraisers, which requires further course work and hours of work experience. Under s tand this indus tr y problem before it becomes a deal-breaker. A LTHOUGH THE DECLINE in appra isers ha s just recently beg un to receive widespread attention, many experts trace the problem back to the housing and fi nancial crisis that began in 2007. In 2016, Diana Olick, CNBC's real estate correspondent, reported that the shortage we're seeing now is the result of federal regulations established in 2008 to increase scrutiny of the mortgage-banking industry. Specifi cally, as part of an eŠ ort to increase oversight, a new rule prohibited apprentices from performing inspections without a licensed appraiser present. This meant veteran appraisers could no longer delegate their jobs, which in essence removed their incentive to train and pay apprentices. Without the ability to receive mentoring and compensation, young trainees confronted a serious barrier to entry as they sought to complete the 2,000 hours of experience necessary to acquire a license. According to the Appraisal Institute, a prominent industry association, the number of appraisers has decreased more than 20 percent since 2007 — a statistic that is growing more problematic as existing appraisers approach retirement. More than 60 percent of appraisers are over the age of 50, the Appraisal Institute claims, while only 13 percent are 35 or younger. The decline in appraisers means that it is taking longer for appraisals to get completed, which can jeopardize homebuyers' ability to secure fi nancing, delay closings and, in some cases, scotch deals altogether, according to real estate magazine The Real Deal. As a result, the price of appraisals has risen in some areas — and some appraisers are adding exorbitant surcharges in exchange for expedience. While government agencies are taking steps to address the issue, there are no surefi re solutions at the moment, which means builders and homeowners should be cautious and factor the potential for a delay into their closing schedules. ■ Appraiser Shortage THE CO$T OF AN BOSTON.BUILDERARCHITECT.COM Builder+Architect Greater Boston |