A Wakeup Call for the Valuation Industry: Is Anybody Listening?
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On February 13, 2013 the National Association of Home Builders (NAHB) published a fascinating critique on the world of valuation. The document: “A Comprehensive Blueprint for Residential Appraisal Reform” should be read by every appraiser, every user and every client. NAHB is telling us our core systems are not working and to take another look at our process and procedures. Our systems are too inconsistent, too cumbersome, and NAHB is asking us to improve our efficiency which impacts their and our profitability. NAHB is asking the industry to provide them a uniform, consistent, quality product utilizing well trained staff. These exact same issues exist in the certified general/commercial valuation industry as well.
The concept they are presenting has significant merit in my opinion. The streamlining of regulatory
frame work and improved oversight is easy to say but a challenge to achieve. The NAHB proposed data system is essential for all forms of valuation and the more data the better. The development will change everything and is needed to improve efficiency, accuracy and timeliness of delivery. Costar/Loopnet sales data have improved a lot and for me working nationally this information is of great value. I see great value in nationwide reciprocity or a national appraiser’s driver’s license with state fees. I do this now with temporary licenses in states where I am working.
The training and development of competent people is imperative for the valuation industry to meet the needs of our clients. NAHB wants one standard for education, training, and mentoring. The clients of our services want and need consistent products to be delivered efficiently effectively and profitably.
A unified group of professional appraisal organizations should be doing this now but can’t get it together. The valuation industry should not have to be told this by one our biggest customers. Remember you as a customer shop where and when you want and if you don’t get what you want you go elsewhere! Our clients and users of our services will do the same thing if we do not provide them with efficient, effective, accurate delivery of valuation services. Is anybody listening?
The appraisal industry looks like this today. (Directly from the ASC’s appraiser credentials summary as of April 7, 2013 was Certified General 37%)
|Certified General||38,020||37%||Residential Combined||Residential Combined #|
So when over 60 percent of us are very dependent on residential real estate we should probably be listening carefully to one of our biggest customers.
By Richard Gilmore, ARA