Low-Cost E&O Insurance from OREP        Library/Previous Editions

Trainee Trouble: Who's Training Who? read story

>You are absolutely correct that we certified and experienced appraisers are paying the trainee to learn the business rather than the other way around. It was difficult for me to train my own son, who is a quick learner, and pay him a reasonable wage on top of it. I can tell that other appraisers who have "trainees" are not teaching them what they need to know but sending them out to muddle through. I choose not to train anyone else for the reasons stated in your story and wonder who thought of this method of business. If you think of anyone else with apprentices, the relationship certainly does NOT work in this way. - Nancy Quillen

> I have tried for four years to train someone. Most are not willing to work. None have followed through to even complete the course after they paid for it. Due to the fact that I work out of my home, I do feel nervous about who works with me. - Vana Bailes

> Regarding trainees and mentors, the program as currently structured is a sham. Mentors accompanying trainees on every inspection is ludicrous overkill. For basic, residential appraisals, any mature, intelligent adult should be able to perform inspections on their own after three properties. This can be demonstrated to a qualified instructor. In my 12 years of experience, I have never seen a mentor go on more than two inspections with a trainee. It is common knowledge that the requirements are excessive. As far as mentoring goes, all mentors ever taught me was how to hit the number and ignore deficiencies. This is the real world of appraisal. Untrained and unmonitored mentors take advantage of trainees any way they can. The greatest improvement one can make to the system is to eliminate "mentoring" entirely, as well as the Trainee designation. Residential real estate appraisal is a semi-skilled trade, requiring minimal education and college-level performance testing. Any person with a college degree should be able to hit the ground running and hire a mentor as a consultant when they are unsure of how to proceed. It's time for the appraisal industry to grow up. Move the education to an impartial, non-profit institution and eliminate the excessive hand-holding requirement. In addition, independent appraisers need to be audited on a regular basis by an independent government agency just as auto repair shops and restaurants are. Appraisal fraud is rampant due to lack of policing and it's not trainees who are the violators. It's time to spray the water on the fire, not on the smoke. - Stephen G. Bishop  

> As a business owner and trainer of more than eight trainees, it would be a great help if they had at least 50 to 75 appraisals completed before looking for a mentor; even if they did mock appraisals in a classroom and field situation. It would be much less time consuming to train them. - Wendy Woodard  

> I learned how to measure and inspect houses when I was hired as a county appraiser. I had already sold real estate, had a degree in interior design (so I knew how to read plans and the elements of design) and had worked in the planning department. They paired me with an experienced appraiser for a couple of months in the field, provided good continuing education and paid for one course a semester while I worked toward a 10 course post baccalaureate certificate in real estate and land development. I see no reason why this can't be taught in school- how to measure properly, elements of construction, how a house is built, etc. This seems much more sensible than having to learn as a trainee, for the reasons stated in the article. - Catherine Baxter

Trainee’s Perspective
> I am now a certified residential appraiser. While doing my work as an assistant, my supervisory appraiser would always accompany me and the other trainees on our assignments and review our work before letting it go out of the door. At our office, we know this is not the norm. We know many "supervisory appraisers" who let their trainees go on assignments themselves and just sign off on their work. We also know of several certified appraisers who sign reports for their kids who never even viewed the property or completed the assignment. A big problem is that certified appraisers are afraid of training their future competition. Out of four trainees in our office, only one ventured out on their own after getting certified. The rest of us feel loyalty to the person who trained us and allowed us to get our certification under his supervision. He does pay us a generous percentage of each appraisal and all office expenses are his. In other words he puts up with most of the BS. I feel loyal to him and I think the majority of trainees would feel some kind of loyalty to the person who mentored them. But of course, not all will. – Jan Andter

> I recently passed my state test. Now that my two year "training” period is completed, I can add comments from the trainee side when it comes to mentors. My initial contact with his firm was only with an office manager. I received an appraisal that day and went on my way. Mr. Mentor never went out with me until several months later when he took us on a commercial appraisal. Mr. Mentor never went out with me on one residential appraisal. Most of my feedback came through a very experienced but unlicensed office assistant. Over that period of time, Mr. Mentor was rarely in the office and rarely returned phone calls in a timely fashion, as he was too busy with other companies he had set-up (companies that he eventually shut down due to financial problems). He has since moved from the state but still has trainees handling the appraisals without his input, and has no problem having his local office sign his name as the supervising appraiser on URARs, qualifying that he has inspected the properties. Add to that, bounced checks for work that was done and not being paid anything for two months, and it is quite apparent that Mr. Mentor has some serious ethical problems.

The issue comes down to this: unless ethical, caring and professional appraisers are available for trainees, we are forced to go to schmucks like this for our hours. The many veteran appraisers who are not part of the learning process and who allow their peers to run these appraisal mills have to share some of the blame for the problems this profession faces. We are forced to put up with whatever whims Mr. Mentor chooses, and our option is put up with it or leave. But to where?

I know that there is a problem with trainees stealing clients upon licensure and no one wants to lose money, however legal agreements are enforceable. Let's face it, if someone wants to steal, there is usually not much reasonable people can do about it except to protect themselves legally and rectify it legally.  I agree that something should be done. On the other hand, setting up an appraisal school to obtain hours, likely at the cost to the trainee, will prevent many from obtaining a license. It's been hard enough surviving financially as it is and I can't imagine how possibly taking an extended period of time for training school without some pay could be done. I believe that experienced appraisers should be encouraged to take on a trainee with the knowledge that it will affect their bottom line adversely initially but should help it as time goes by. Sure they need to protect their business but that is not just an appraisal profession problem but a business problem. - Mike Hoff

> One solution is for trainees to pay their mentors. You can't go to college or technical school without paying tuition, why expect to get a lucrative job as an appraiser without paying more than the nominal fee it costs to get your 75 hours of training? My last trainee was paid $10 per hour which is not really a living wage. He never got off the ground and I was forced to let him go after more than a year of paying him $400 per week for doing nothing but learning how to draw a sketch. I will be the first to say that it takes a while for “the light to come on" but once it does the hard part is over. (In my trainee's case, the light never came on.) A tuition type payment would help cover expenses for a trainee who isn't producing. It would at least pay for gas money, insurance or some other light overhead expenses. - Greg Hartley

> We have had had about 15 trainees over the past 10 years all quit within a short period of time, say  six months to two years, and sought other jobs with larger appraisal firms. Basically, we were training our competition. Some didn't have the ability to appraise but most sought the higher level and larger shops to work for. We basically were a stepping stone to the ultimate job. Get their foot in the door, use you for a while then take a job with a larger firm that hired them once they had some experience. We stopped taking on trainees last Fall and plan not to take anymore on. - Larry Dobbs

> First of all, I don’t buy the “training the competition” idea. Any profession that can’t stand competition is a dying profession. Maybe that says it all? I currently have one apprentice working with me and it’s true that the current preliminary education system for trainees/apprentices does not teach them much. Most have never seen a 1004, 2055, 1025, etc., don’t know anything about how to conduct a sales study to determine market reactions to elements of a property, think Marshall & Swift is a comedy team, NADA means nothing (in Spanish) and have never been inside the County Assessor’s office!

The current system for apprentices is reminiscent of the medieval guild system; most apprentices work for little or nothing, are more often than not used for slave labor and have to sandwich their appraisal hours in with another job. Many come away from the “training” experience with not much more information than they started with. An experience school such as you mentioned would be a great benefit to the whole system. - George Gunning

Inspector’s Perspective
>Your story states: “While the laws in each state are unique, many require mentors to accompany trainees on all assignments during at least the beginning stages of their field training (typically 2,000 hours).” Is 2,000 hours correct? That seems unrealistic and objectionable. That's just a week or so short of a full year at eight hours a day. No single person in business could possibly afford to train someone to that extent, especially when that someone is not an employee but will become the competition. I sure wouldn't and I certainly don't fault anyone else who doesn't, either. - Russell Ray, HomeTeam Inspection Service.

> Over the years, I have had many trainees. In the old days they were different. They came into the business to be an appraiser. Now they are motivated by the huge money the schools tell them they can make. I have hired two trainees in the last year. The first had started out (with another mentor) doing residential work and soon realized that what he was doing was creating fast reports using a template, function keys and automatic adjustments. Whenever he questioned what was being done to create the "appraisal," he received lame answers. The last straw came when appraising a sale and he could not support the sale price without a Time Adjustment. His trainer told him, "We do not make Time Adjustments, underwriters will not accept them." It was at that point he called me. I told him that was complete BS and taught him how to do pairings and/or use published statistics to prove or support the adjustment. Within days, he realized he had to leave in order to learn appraising. -Steven R. Smith, MSREA, MAI, SRA

More Comments of all Stripes
> Sometimes I get discouraged because I know that I am taking my trainees down a path that not many appraisers go. I know how we prepare reports is time consuming. It will always be a balancing act when trying to obtain information as to what is important to know and what is not. Read USPAP and FNMA to know what standards you will be held to. Do not go by what I say! While I always believe I am right, the ultimate test is always USPAP and FNMA because those are the standards you will be held to, not mine. You must decide for yourself about just about everything I have taught you. 
- Leslyn Georgis

> I have read with great interest the story on trainees followed by the comments from mentor appraisers. I wondered what world some of the mentors came from. They pay me to learn the business? In my case and many others. . .I don't think so! All my work is checked and rechecked by my mentor. I have to make all my own corrections and return the work for final check and signature. I was constantly grilled on where I got my information and have to support all of my adjustments. Sure, I make my share of mistakes but finding them and pointing them out to me is the mentor's job. If a mentor doesn't want to do this, what are they teaching me for? Apparently, many of the mentors commenting in your story are teaching for all the wrong reasons. (It's the money, stupid!) The mentors griped about the costs involved in hiring a trainee. Who are they kidding? I had to set up my own office at home, buy my own computer, supplies, software, use my car, gas and insurance. Nobody is giving me a free ride!!!  The mentors get 60 percent of the profit, even on accounts I own and have set up myself. It is ludicrous to state that the mentor pays me.  n fact, I pay the mentor 60 percent of all the work I do. I work hard and have learned the trade. I know of several trainees who have learned the trade under similar conditions. I put in a huge amount of hours for the 40 percent I receive.  Sometimes, in the beginning, I couldn't break even with the costs involved in operating my own business on 40 percent of the billing. But I was taught that anything worth doing isn't going to be easy! 

For the most part I love every minute of it. I was raised to work for my share in this world and didn't expect anyone to hand me my license on a silver platter. However, I am glad I have had the great experience with the two mentors that I work for. I pity the trainees who had to endure the 2,000 hours working for the whining, cheap, unappreciative mentors in your recent story. These mentors are the true embarrassment to this great field, not the trainees who have fallen victim to them. - Thomas G. Sadler

> I enjoyed your article and the responses regarding trainees and did not realize how fortunate I was to be employed by an incredible mentor.  When I decided to get into single family appraising after a 25 year career as a pension fund consultant, where I invested billions of dollars in commercial real estate, I thought I knew everything there was to know about real estate. After all, in addition to my professional experience, I had majored in real estate in college, and had taken five Appraisal Institute courses. The best thing that ever happened to me was to be employed by a State Certified Appraiser who had been trained to do appraisals "by the book."  There are no such things as "automatic" adjustments, and even after completing approximately 50 appraisals, it still takes me several re-writes to have the appraisal pass her standards. As for inspections, she accompanies me on every one because that is what is required (at least in Florida ) for her to sign the appraisal, and I welcome it. So much of the business can be learned from conversation while at a property or on the way to or back. - Bob Morris

> I enjoyed the comments from both mentors and trainees. In New York State , the mentor only has to accompany the trainee until they feel the trainee is proficient enough to go out on their own.  Unfortunately that leaves quite a bit of leeway for people to send out unqualified trainees to do work.  It is because of the time and expense involved in training that no one wants to train.  Many people who try to train get burned by the employee (the mentor put in time and effort and the trainee wasn't up to the job or they left for another firm the minute they actually started to make you some money).  I teach at RealtyInstitute.net in Flushing , New York .  My students always offer to pay me to take them out on assignments. They beg for us to offer practical training courses. I would love to take these enthusiastic bright individuals out into the real world to teach them appraising. I agree that many times "bad mentors" are just a way into the business.  That's where the proper education helps the trainee "train" themselves and they can recognize that their employer isn't giving them the support they should.  I think it takes two months of good mentoring before a trainee is ready to start doing appraisals on their own. 

I try to give my students some practical knowledge along with appraisal theory.  I get them started on things like inspections and drawing sketches, comp searches and tell them to go out and practice all these things on their own.  The motivated ones do this; the ones who will only do it if someone is paying them won't be a good employee prospect.  - Janine Campeau Ewald

> Appraising has the same problems as other businesses/vocations. Some supervisors don't know how to supervise. Some instructors don't know how to instruct. Some students have no idea what they are doing or where they are going. The licensing rigs and rules assume that both mentors and trainees are basically stupid, slow learners, and corrupt. There is no flex in the program: one size fits all. If we cross trained many competent appraisers to be instructor pilots, no one would ever solo, and few would ever accept student pilots.  And, there would still be some who simply handed keys to the student and said "YOYO" - you're on your own. Having trained both pilots and appraisers, I can assure you there are no cookie cutters.  Each student is different and requires different emphasis and attention to different aspects of the job.  Some are a long term danger to themselves and should be "washed out" of the program. Some are fast learners and it's a challenge to refrain from boring them. The push for more hands on instruction is a great idea. However, it would work better if we had courses for some of the mentors on how to supervise and instruct while increasing profits. - Walter H. Humphrey, IFAC

> After reading the responses on the trainee article, I felt that I had to put in my 2 cents. I started off working for a bank as an appraiser trainee. My training lasted for about a year until I was given the title of staff appraiser. After a few years I went to work for an appraisal company. Then after a few years I started my appraisal business with a partner. It took me five years before I had my own business. This is the way most professions work. Why is it that trainees expect to start working right off the bat in a full responsibility position? It is as if the 2,000 hour requirement is a finish line to training. Trainees should start off at banks, perfect their skills and be promoted when their supervisors feel they are qualified. Guidelines can be taught from a book but learning the process to identify market driven comparable adjustments for the sales analysis takes time and practice. The industry does not need a lot new appraisers, so the bank entry-level positions should suffice appraiser needs. - Shelley St. Amand

> Too many people are attracted by the huge $$$ they hear being bragged about by ignorant form-fillers. When I was in my first year of appraising, I was really fast. We were expected to do three per day and were paid incentives to do more. In my 13th month, I did 129 reports (before drivebyes), SFR's, Condos and 2-4s. At that time, we did not verify anything; just ran through the house, grabbed three sales from a comp book, made bench-mark adjustments and went on to the next house. Today, 30-years later, I cannot do one report in an eight-hour day if I do the due diligence that certification to USPAP and good appraisal procedures require. So, to read about trainees doing 5/day is shocking. No wonder they are busy, they are creating fake appraisals to suit the needs of loan production clients. Take a look at the non-lending format the Appraisal Institute has come up with for homes. It forces the appraiser to address issues, and all three approaches to value. We actually have used a format like this since 1980 to train appraisers. Think about how much time it would take to address the issues the form raises when filling out a URAR. There is an army out there who does not know that what they do is substandard, below the level of research or analysis they are certifying to. This class of appraiser is what I call Functionally Illiterate. Most have never taken a meaningful appraisal course. Many got their training online or through a shake-n-bake schools. What they also do not know is that when they are sued, civil or criminal, the standards are what are used against them. The only reason for USPAP is to have a standard for appraisers to use. It helps judges and juries make decisions. - Steve Smith

> One solution would be for trainees to pay their mentor. You can't go to college or technical school without paying tuition, why expect to get a lucrative job as an appraiser without paying more than the nominal fee it costs to get your 75 hours of training. My last trainee was paid $10 per hour which is not really a working wage. He never got off the ground and I was forced to let him go after more than a year of paying him $400 per week for doing nothing but learning how to draw a sketch. It was my fault that I kept him as long as I did but it was not my fault that he could not learn. I will be the first to say that it takes a while for "the light to come on" but once it does the hard part is over. In my trainee's case, the light never came on. A tuition type payment to a mentor would help ease the mentor's mind when it comes to resources that can't cover a trainee who isn't producing. It would at least pay for gas money, insurance, or some other light overhead expenses. - Greg Hartley

> I am a certified residential appraiser with a company in Berks County , PA. While doing my work as an assistant, my supervisory appraiser would always accompany me and the other trainees on our assignments and review our work before letting it go out of the door. At our office we know this is not the norm. We know of many "supervisory appraisers" who let the trainees go on assignments themselves and just sign off on their work. We also know of several fathers and mothers that are certified appraisers who sign the appraisals for their daughters and sons who never even viewed the property and completed the assignment; thus making them certified appraisers who are not qualified. A big problem is that the current certified appraisers are afraid of training their future competition. Out of four trainees in our office, only one ventured out on her own after getting certified. The rest of us feel more loyalty to the person who trained us and allowed us to get our certification under his supervision. He does pay us a generous percentage of each appraisal and all office expenses are his. In other words he puts up with most of the BS. I feel I owe some loyalty and I think the majority of trainees would feel some kind of loyalty to the person who mentored them until they got certified, but of course not all.  

 Working RE Home