NAR Appraisal Survey

NAR Appraisal Survey... Impact of Appraisals on the Current Market

The results of the NAR appraisal survey show more than half of appraisers reported AMCs to be the greatest challenge in their business with 40% reporting not being compensated fairly. Only 3% of members witnessed or experienced discrimination in an appraisal…

NAR Research conducted a survey of all 9,700 appraiser members and 50,000 randomly-selected non-appraiser members to determine the level of impact of appraisals on the current market and member business in terms of cost, turn-around times, and other challenges and to measure member experiences with bias and discrimination in the appraisal process.

Highlights of the NAR Appraisal Survey

The typical respondent has 15 years of experience in real estate. The typical appraiser is significantly more experienced than the typical non-appraiser member: 25 years vs. 14 years.

  • 66% of non-appraiser members cite lack of inventory as their greatest challenge. Other top challenges are rising prices/declining affordability (47%), finding sellers (38%), and navigating multiple offer situations (28%). Only 15% cite appraisal issues.
  • Virtually all appraiser respondents (97%) have conducted an in-person appraisal, and 79% have done so by desktop/drive-by appraisal. 11% cite evaluations (non-appraisal opinions of value). The 8% who cite other valuation methods most often explained that they use a hybrid approach or mostly an exterior appraisal.
  • 54% of appraisers report that appraisal management companies (AMCs) have been among the greatest challenges in their businesses in the past year; 30% cite expanding regulations; 27% cite pressure from real estate agents/brokers and fee pressures, respectively and 12% cite allegations of bias/discrimination in appraisal.
  • The typical appraiser reports a 40-mile radius in which they conduct appraisals. 68% report practicing within a radius of 20–59 miles.
  • More than half (54%) of appraisers feel fairly compensated for each appraisal; 40% do not feel compensated fairly.
  • 3% of members overall report witnessing or experiencing discrimination in an appraisal, most likely based on race or color (2% each). 92% of all respondents have never witnessed or experienced discrimination in an appraisal. 16% say they have not witnessed or experienced it but believe discrimination in appraisals exists; 5% are not sure.
  • 23% of respondents were not practicing prior to 2010. Among those who were, 32% report that the process is worse since Dodd/Frank, and 35% are not sure. Appraisers are significantly more likely than other members to say the process is worse: 49% of appraisers overall report this, vs. 16% of non-appraiser members.

2022 NAR Appraisal Survey

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6 Responses

  1. Avatar Coach says:

    “Only 3% of members witnessed or experienced discrimination in an appraisal”

    Interesting! With all the recent negative press about appraisals, one would think that appraisal bias is systemic.

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  2. Avatar PJTMC says:

    With regard to racism, quite frankly I’m taken back by the respondents. Race & color are 2% while Maxine Waters is beating the drum that all white appraisers are guilty of racism. It is rampant and out of control. Keep in mind this is a generic question so the 2% can include any race. All racism, not just white, has no place in our industry and society. I find it appalling our elected officials are spending exorbitant amounts of time, money and energy making it appears as if this is Armageddon when in fact it does not appear to be a major problem in the appraisal industry. This is proof positive there is an agenda at work in Washington. The NAR really needs to be proactive for their dues paying members with equal representation and that is not being done. By letting our elected officials get away with this appraiser persecution they need to ask themselves, who is in the waiting room? The other spineless appraiser organizations who, through their knee-jerk reaction to the word racism, also need to speak up and stop cowering in the wings. No wonder there is no unity in this industry.

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    • Baggins Baggins says:

      “This is proof positive there is an agenda at work in Washington.” Yep, always been that way, always will be too. Politicians follow the money and big tech companies are throwing a lot of money around in an effort to gain market share within the real property services industry. Politicians in coordination with media and corporations simply tap into whatever public frenzy is present at the time to keep that donation money flowing.

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  3. The 3% who answered the discrimination question were 3% of National Association of Realtors (NAR) members and not independent appraisers. They are obviously talking about appraisals related to their own sales transactions where they had a vested financial interest.

    I bet all the appraisals which they felt were “discriminatory” were below their own contract price. I also bet they have been reading the many misleading media articles with the false narrative of the “racist appraiser.” In years past appraisers were called “deal killers” if we came in low. Now we’re automatically called “racists” yet our appraisals have not changed. They’re still market value. Only politics, social media and other things have changed.

    “NAR Research conducted a survey of all 9,700 appraiser members and 50,000 randomly-selected non-appraiser members.”

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    • Baggins Baggins says:

      Thank you Mary. Some of the pages and statement quotes are cherry picked and quite frankly, should not have been taken seriously, much less repeated, one in a million give me a break. While pg 39 was quite redeeming, more truth about the destructive nature of amc’s and brushing off accusations of bias. I observe more racism at the grocery store and bias on regular syndicated media. Can’t even turn on the television or cross the street without being reminded of the biased nature of society in general.

      When it comes down to it, the appraiser is the last person many people see, if not the only person in refinance scenarios, before closing. If people wait till the closing table to sort out any concerns, already too late. My last closing agent was a foreigner whom was a part time yoga instructor and notary, and she will forever if she did not follow the rules, have a complete data set of all our personal income, address, contact, and SS# information. Which she printed at home before taking that in her car to the bank, and likely had ten other peoples complete closing data left in her car while inside, these people may do 10 closings a day. She walked in and was visibly upset she was dealing with us, refused to even shake our hands and attempted to run closing without even taking her sun glasses off. Refused to provide a business card or any contact information. Could not answer any questions about the documents we were supposed to sign. This supposed attention to lending reform needing to revolve around appraisers and appraisers alone is a joke. There are gaps in informational security and process reliance the size of the grand canyon. Pointing the finger at appraisers is an utterly pointless exercise. They’re hiring closing agents from temp agencies, so please.

      It’s all phone based, automated, perhaps a walk through. What the appraiser brings to the table is intangible quite often, but you’ll notice it if we’re gone. We keep them honest because we’re not part of the commission based back patting circle or paperwork mule team. If we’re subbed out with third party inspectors, reduced requirements, or flooded with people whom just bought in or were gifted their way in via alternative licensing avenues, the industry at large will experience brand new problems they never thought possible. The appraisers mere in person presence as accountable individually licensed and insured non advocates quite often results in an effective limitation of how far predatory agents, lenders, and other ancillary participants are willing to go. This can not be measured in statistical analysis, the deterrent factor associated with honest and truly independent, in person, appraiser persons involvement. One does not have to speculate very much why they’d want us gone and no longer there in person. Hint, it has nothing to do with efficiency or demand.

      Being an appraiser is an incredibly challenging position and the only reward is the paycheck and independent nature of the job. If realty agents want appraisers to be more accountable, they should look in the mirror because if agents knew what they were doing, and did so honestly, it makes the appraisers job quite simple and straight forward. It’s always the incompetent or aggressive agents whom run us around then complain we’re not doing something properly. Anyone can simply buy their way into a realty license, it’s very easy to acquire. The same can not be said about the appraisers license which is occupational and necessarily so. Lowering the barrier of entry to be an appraiser will merely result in similar lack luster unreliable activities we so routinely observe elsewhere.

      There are some very good agents and appraisers out there, others find a way with less scrupulous methods. This can not be regulated away, there is no solution other than retro active enforcement. Increasing automation on the valuation side is a recipe for disaster. The problem is bias, but has more to do with human beings than any specific occupational choice. Who’s actually buying this bullshit theory that appraisers are biased and racist, yet no one else is? It’s an intelligence test and people are surprisingly, failing to comprehend something so simple. The utopian dream of imposing a perfect system through regulatory efforts or increased automation or outsourcing has been and will always be unobtainable. Good consumer protection has nothing to do with race, and everything to do with professionalism and smart decision making processes. It comes down to the individuals, and individual choices they make. Increased automation is code word for bye bye consumer protection from accountable and caring humans, and hello again to a brand new wave of predatory behavior. You’ll get to live the dream of utopia in this regard; Consumers will get swindled left and right regardless of their race, gender, or sexual orientation and all of that.

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  4. Casey Scott Clay on Facebook Casey Scott Clay on Facebook says:

    I understand that education is important. Due to third parties shopping the cheapest fee, does it matter your designation? Appraisers are highly educated professionals and treated as laborers in this industry. I understand the fluctuation of fees due to competition and supply/demand, but it’s frustrating to be forced to lower our fees to prices that were standard 15 yrs ago. The price of gas and these fees do not compute.

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NAR Appraisal Survey

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