Residential Appraisals Are Here to Stay

Many people use residential appraisers to get an appreciation of the value of their house. Getting that estimate usually does not take long and the interaction home owner have with the people actually evaluating their house tends to be limited to small talk and exchanging forms. But who are these appraisers? What are they doing day to day and how are they coping with the extreme conditions that have been laid upon them during this recession?

The business of appraising is a lot like many other businesses in many respects. During the current economic climate it has turned to a mode that many others have turned to - survival of the fittest. Forbes has recently placed residential appraisers at the surprising number 14 in the list of "Most Profitable Small Businesses." Public Accountants (certified) and Chiropractors held the top two spots.

"Being an appraiser is much like being a CPA or attorney as far as the level of education and experience required," said Rand Bouldin to the Memphis Daily News. "It involves a significant amount of time, effort and dedication to become a recognized professional in the field."

Appraisers must complete several more years of education and peer reviews in order to obtain recognition from the official institutes. When the recession hit, changes in the industry started to occur, just like most businesses. Appraisers were now facing stricter legislation. This has of course affected banks and so the way these banks order appraisals changed.

Mr. Bouldin says that "it has evolved as I have gone from appraising properties, which were being acquired or refinanced with new loans during the boom times to appraising a significant number of properties for banks with existing loans that are considered potential problem loans for the banks," he said. "Prior to 2008, most of our appraisals involved new loans either due to a purchase or refinance."

Somehow, despite the unfortunate turn of events in the market, the appraising market is still staying in the same cyclical routine it always has. There has been an increase in foreclosure appraisals and banks, who now own millions of what they call "toxic assets," which are basically houses that are not worth much, need house appraisers in order to find the assets that can get them out of the mess they're in. The industry of home appraisals is one that is worth looking at. These appraisers may be part of the solution we are looking for in these rough economic times.


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