Appraisals typically have a turn time of 7 calendar days after we order them. In the last 6 weeks, the increased volume in refinances and the uptick in purchases is dragging appraisal turn times out to 2 weeks or so in the Valley.

With turn times like that, we simply cannot wait until the buyer inspection period is complete to get the appraisal ordered. It is very important for Realtors to educate their buyer and sellers on these turnaround times so they are prepared.

Did you know that there are 20% fewer appraisers in the United States today than there were in 2007?

Think this is a short term problem? Think again. Federal requirements around appraisals are very stringent, and that’s unlikely to change. Lenders don’t have a lot of choices about who we work with, which means that appraisers don’t have a lot of incentive to prioritize our orders.

What you might not know about appraisal licensing: Unlike real estate and mortgage licensing, appraisers must apprentice for a year before they can become a licensed appraiser. This means the industry tends to not be able to staff up quickly in response to increases in volume.

And the appraisal industry is aging and shrinking. Many appraisers left the business after the 2008 crash, and those that are left tend to be older. 62% of appraisers are over 50; the appraisal industry is expected to shrink another 3% over the next few years.

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