NAR Appraisal Survey
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
- Appraisers Pressured to Inflate Values Based on Race - August 16, 2023
- Foregoing Contingencies! But What About Fiduciary Duty? - June 27, 2023
- NAR Concerns & Survey on Property Data Collectors - June 5, 2023