How Do We Solve the Problems With Appraisals?
Appraisal Solutions by Chairman Marvin Jolly
Your Texas REALTORS® Leadership Team has been listening.
There are problems with appraisals. Lots of problems. Long turnaround times, high costs in certain cases, questions about geographic competency, challenges in rural areas, frustration in high-volume markets, issues with appraisals of complex properties, and a shortage of licensed appraisers.
How do we solve these problems? We solve these problems together.
Solutions of this magnitude definitely require the work of a village. In order to fully resolve the gamut of issues, cooperation will be required by Congress, agencies at both the state and federal levels, Fannie Mae, Freddie Mac, NAR, Texas REALTORS®, your local association, and you!
Within the real estate family, there are several opportunities for progress:
The National Association of REALTORS® has been focused on appraisal concerns dating back to 2013 and prior. Currently, NAR has four member groups looking very diligently for solutions: Real Property Valuation Committee, Conventional Financing & Policy Committee, Federal Financing & Housing Policy Committee, as well as the Public Policy Coordinating Committee. These committees are the starting point for receiving member input, conducting research, and formulating well-crafted policy positions.
Texas REALTORS® has been getting input from members and has now created an Appraisal/Appraiser Workgroup to identify potential solutions. The workgroup, composed of REALTORS®, lenders, and appraisers, will serve as a think tank and clearinghouse for ideas and strategies on a path forward. Texas REALTORS® also supported House Bill 2533, which allows Texas appraisers to complete evaluations without complying with the Uniform Standards of Professional Appraisal Practice (USPAP). Evaluations, which can be done more quickly and potentially at a lower cost, can apply to transactions that meet specific criteria.
TREC/TALCB: The Texas Appraisal Licensing and Certification Board has been working on the Texas implementation of Practical Applications of Real Estate Appraisal (PAREA) recently adopted by the Appraiser Qualifications Board. PAREA will provide another pathway for aspiring residential appraisers to fulfill their experience requirement through online and virtual reality technologies in lieu of the traditional supervisor/trainee model.
Your local REALTOR® association: Many local boards are offering roundtables and education opportunities for REALTOR® members to become better acquainted with appraisal and lending processes.
You: Together, you and I as REALTORS® have the most influential and relevant role in making an immediate difference in the lives of our buyer and seller clients. Here are a few actions we can take as REALTORS® in the field:
- Stay open-minded and engaged with all parties and all steps in the process.
- Get educated as fully as possible on depository lenders, non-depository lenders, appraisal management companies, and appraisal requirements.
- Educate and consult your buyers and sellers regarding varying approaches by different lender types.
- Build valuable mutual relationships with a range of lenders who specialize in niche loan programs.
- Vote for REALTOR®-supported candidates.
- Respond to calls for action from NAR and Texas REALTORS®.
- Invest in TREPAC.
Helen Keller said, “Alone we can do so little; Together we can do so much.”
Making the world a better place for buyers and sellers, and making homeownership more accessible, is our job. It is up to all of us. Let’s do our part!
Marvin Jolly is 2021 chairman of Texas REALTORS®.
Source: Texas REALTOR® Magazine