The number of Arizona real estate appraisers could decrease at a rate of 3% per year over the next decade.
According to the Appraisal Institute, the pool of real estate appraisers in the United States is shrinking and aging. Sixty-two percent of appraisers are 51 and older while 24% are between 36 and 50. Only 13% are 35 and younger. The Appraisal Institute believes the number of appraisers could fall 3% per year over the next decade
Below is information and statistics which will give insight into the real estate appraisal industry and some of the factors causing the number of appraisers to decrease.
Are there different types of real estate appraisers?
Certified Residential Appraiser
The State of Arizona permits Certified Residential Appraisers to appraise one to four residential units (single family residence, duplex, threeplex or fourplex) without regard to value or complexity of the appraisal, but does not allow them to appraise residential subdivisions.
Certified General Real Estate Appraiser
The State of Arizona permits Certified General Real Estate Appraisers to appraise all types of real property.
Licensed Residential Real Estate Appraiser
The State of Arizona permits Licensed Residential Real Estate Appraisers to appraise non-complex one to four residential units having a transaction value of less than $1,000,000 but does not allow them to appraise residential subdivisions.
What factors are causing the number of real estate appraisers to shrink?
According to industry experts, the following dynamics are contributing to the decreased number of appraisers:
- Appraisal fees are decreasing or stagnant. Since many appraisers are employees and split commissions with their employers, they are apprehensive about the ability to increase their earnings in the future.
- Prior to 1991, when Arizona state licensing began, anyone could hold themselves out to be a qualified real estate appraiser. The licensing process is considered by some to be too rigorous and time consuming.
- Entry level employees are sometimes reluctant to pursue a career in an industry that requires 2,000 to 3,000 training hours.
- Owners of real estate appraisal firms are sometimes reluctant to hire new employees because the training process mitigates their productivity.
Gary Ringel, CGREA
(1) Thirty semester hours of college-level education from an accredited college, junior college, community college or an Associate’s degree or higher (in any field).
(2) 1,500 of the 3,000 hours must be nonresidential appraisals.
(3) According to the Department of Financial Institutions Real Estate Appraisal Division (formerly the Arizona Board of Appraisal), the length of the state examinations may change sometime in 2016.
(4) Source is https://boa.az.gov/sites/default/files/documents/files/APPRAISER%20LIST%205-9-16.pdf. Numbers are as of May 9, 2016.