CA Appraisers 50% Decline & Fees Up 76%
97 37 10
The Number of CA appraisers drops from 20,120 to 9,987. Renewal fees up 76% for 2020.
Excerpt: It’s time to assess and reflect on the numbers as the decade ends. It’s noteworthy that the total population of Bureau of Real Estate Appraisers (BREA) licensees has now fallen below 10,000 for the first time since the Bureau began keeping records. The numbers reflect some interesting trends.
Licensee population counts vary daily as licenses are granted and others expire, so this data is a recent snapshot in time. Also, approximately 7% of licensees are trainees, 8% report out-of-state addresses, and some percent are not actively practicing. Therefore, it’s likely that the number of active working appraisers in California is somewhere around 8,000.
More surprising are the numbers that show how the population of appraisers in California is aging and how few young people are entering the profession. Nearly 70% of licensees are over 50, almost 40% are over 60, and less than 12% are under 40. When trainees are removed from the count, there are more licensees from ages 80–89 (109) than there are from ages 20–29 (88).
My comments: Of course, as we all know, first FHA required certified appraisers, then AMCs did, even though some of their lender clients did not. Who is going to keep trainees for the years required to become certified plus have a few years experience after being certified? Plus, inspect with them. Very few appraisers will do this. I would have not hired trainees in my business if this was required.
Lowering licensing requirements won’t help if there is no one to train appraisers.
CA is on a 4 year full CE cycle. Every 2 years USPAP is required. Every 4 years all CE is required. The annual renewal fee for certified is $462.5 starting 1/1/20. In 2019 it was $262.50, an increase of 76%. In 2006 it was $150. In 1994 it was $202.50.
What will this mean? As more appraisers retire or quit and give up their licenses, there will be more work for the appraisers that are left. Many baby boomers, including myself, are cutting back on appraisal work, making it harder to justify the fixed costs, including licensing and CE.
To read more and see tables and graphs, click here.
My comment: CA is useful for comparison as it has a large number of appraisers in a wide geographic area.
NOTE: To subscribe to Appraisal Today monthly newsletter click here.