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Under Pressure: What’s Driving the Appraiser Exodus and How to Fix It
by David Massey
Ask any veteran appraiser or physician what has changed most over the past twenty years, and the answer is usually the same: paperwork. Professions once centered on skill, judgment, and service are now dominated by portals, compliance layers, and third-party control. Burnout rises, independence falls, and a quiet exodus follows. The appraisal profession is now well into that cycle. According to the Appraisal Institute’s 2023 Fact Sheet, the number of practicing appraisers in the United States has declined by roughly 8,000 in recent years. The Conference of State Bank Supervisors shows a longer-term drop from about 120,000 appraisers in 2008 to fewer than 96,000 by 2017, a 21 percent decline in less than a decade. IBISWorld reports another six percent employment drop between 2018 and 2023. The U.S. Bureau of Labor Statistics projects only modest growth through 2034, far short of what is needed to replace retirees. The pipeline is shrinking while demand remains steady. The National Association of Realtors ® 2023 Appraisal Survey found that more than half of appraisers are now asked monthly, or more often, to complete assignments outside their normal geographic or property-type expertise. More telling, 54 percent cited Appraisal Management Companies as the single greatest challenge to their business. That statistic alone explains much of what has gone wrong. When I started in this profession, appraisal centered on analysis, interpretation, and professional opinion. I studied neighborhoods, walked properties, and applied experience to market behavior. Today, much of the job revolves around compliance portals, redundant uploads, and layers of review by people who have never inspected a property. AMCs were created after the 2008 crisis to protect appraiser independence. The idea made sense. The execution has failed. Today, borrowers commonly pay $600 to $700 for an appraisal, while the appraiser often receives about half of that after AMC fees. Turn times lengthen. Panel depth shrinks. Geographic competency erodes. And experienced appraisers quietly step away. What was meant to reduce pressure has become a system of control. Communication between lenders and appraisers is filtered. Pricing is dictated by algorithms. Scope interpretations are issued by third parties removed from the field. Judgment is slowly replaced by checklist compliance. More than 60 percent of appraisers are now over the age of 51. Retirement is accelerating. Fewer trainees are entering the field. Training requirements are long, liability is high, and independence is shrinking. Younger professionals see a system heavy on oversight and light on reward. Many choose different careers.(story continues below)
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That creates three direct risks for the housing market. First, longer turn times, especially in rural and complex markets. Second, rising costs as supply tightens further. Third, greater variability in valuation quality as geographic competency breaks down. A rushed or inexperienced valuation does not impact just one loan. It ripples through underwriting confidence, pricing accuracy, and consumer trust levels. Healthcare has already traveled this road. A 2025 Annals of Internal Medicine study showed nearly five percent of U.S. physicians left clinical practice in a single year, driven largely by burnout and administrative burden. The American Medical Association reports that physicians now spend nearly two hours on documentation for every hour of patient care. Appraisers now operate inside the same imbalance. More time formatting reports than analyzing markets. More time satisfying review protocols than developing defensible opinions. Judgment yields to process. This is not a workforce inconvenience. It is a structural market risk. The fix is not complicated, but it does require courage. First, appraisal fee transparency must be mandatory. If a borrower pays $650 and the appraiser receives $325, both parties deserve to know. Transparency restores accountability and allows market forces to function. Second, the AMC model must be reformed. Filters and portals should not replace professional dialogue. Communication between those ordering the work and those producing it must be restored. Third, training incentives must be rebuilt. Mentorship requires time, risk, and revenue loss. Without meaningful compensation and protection for mentors, the next generation will never reach scale. Finally, technology must support judgment, not suffocate it. Automation can assist analysis, but it cannot replace local knowledge, experience, and professional interpretation. At its core, this is not a technology problem. It is a trust problem. Both medicine and appraisal were built on professional trust—not blind trust, but earned trust supported by education, licensing, standards, and accountability. The current system defaults to control first and judgment last. That inversion is driving professionals out. When professionals are trusted to do the work they were trained to do, quality rises, confidence stabilizes, and risk declines. When they are reduced to checklist operators, they leave. The appraisal shortage is not coming. It is already here. And this is no longer just an appraiser problem. It is becoming a lending problem.About the Author David Massey is a state-certified general appraiser and real estate broker based in Burlington, North Carolina, with more than four decades of experience in residential and commercial valuation. He is the owner of Massey Appraisals & Real Estate and has served in multiple leadership roles at the local and state level. His work focuses on valuation integrity, mentoring the next generation of appraisers, and restoring professional trust in the housing market.
90-Day AI Appraiser Challenge (Prometheus Project):
Can a Real Estate Appraiser net over $100K a year, while working less than 40 hours per week―without having any staff?
Follow along as Dustin Harris (The Appraiser Coach) documents this 90-day experiment with an anonymous appraiser to test the possibilities! Full disclosure—videos of this experiment will be posted regularly in the All—Star Team Community.
Go to https://theappraisercoach.com/and learn how to follow along.
by Frank A
I’ve been appraising over 40 years; since before licensing. I still enjoy measuring a house and doing the inspection. But i have only stayed the last 20 years because it paid the bills. Appraisers have always been at the bottom of the list for compensation and at the top of the list for blame and liability.
-I have discouraged a few people personally to NOT become appraisers including the son of a friend of mine and one of my own sons.
Twice I had to spend over $5000 in legal fees to defend complaints from realtors who didn’t like a “low” appraisal. All they have to do is write a short letter to the state and all hell breaks loose and comes down on the appraiser. They never once even considered if the value was accurate; only the process mattered. Did you comply with USPAP AO #153 issued in 2010, paragraph 3a? Etc. I won both cases but some wins; I was out 10 grand and couldn’t recover any of my time and money spent.
by PNW appraiser
I just got an email request 15 min ago from a well know and much disliked AMC for $335 -20 tech fee. Nes $305! Ya RIGHT! They were paying $6-700 3 years ago! The actual client is a large bank and I am on their direct panel and get $600 for drive by appraisals! I have brought this up the the client directly inquiring as to why they are sending orders through amc’ and letting us get scalped for 40-50% and not assigning direct like they have been for 20 years. All I got some song and dance about proprietary information and bla bla bla… No real answer. I know what the answer is. They have a contract with the AMC for a certain numnber of appraisals in the geographic area. They just wont admit it!
-by Robert Mossuto Jr
While I can appreciate the authors sediments, as one of those that has retired from the appraisal profession, I think there were points left out, which also contribute to the appraiser exodus.
Let’s start with Fannie and Freddie (the GSE’s), Value Acceptance and censorship. The GSE’s have created a huge riff in the profession. It’s one thing to have specific guidelines and requirements for the securing properties being purchased or guaranteed. However, of late the GSE’s have gone to great lengths to make appraising as difficult as possible; specifically through CENSORSHIP! A laundry list of words and phrases are now banned from an appraiser’s vocabulary, essentially eliminating “truth” with regard to neighborhood characteristics, markets, and so much more.
Then there is Value Acceptance, the new LIAR LOAN. This program puts an actual appraisal at the bottom of the list. First consideration: WAIVER! Fannies and Freddies Waivers are based on “bad data” using algorithms that cannot and do not see the big picture with regard to the neighborhood and property condition, which in of itself has inflated housing values, putting many Americans under water equity wise. And… While Value Acceptance is used in a small percentage of loans, the GSE’s have made it clear they plan to EXPAND its use!
And let’s not leave out the use of the Property Data Collectors (ill trained, unlicensed, unregulated, and uninsured) collecting property data for hybrid and desktop appraisals. PDCs further delete the use of local appraisers with knowledge and expertise and places the loan at risk, which in the end, falls on the appraiser completing the hybrid or desktop at $75 – $100 as well as the American taxpayer.
Then we need to discuss Racial Bias and Diversity, Equity, and Inclusion heavily pushed during the Biden administration and the impact this had on the profession. Literally hundreds of appraisers were turned into HUD being accused of racial bias. And less we forget the blatant advertising; not happy with the appraised value, report the appraiser! There were the bogus studies, congressional hearings, meetings of the minds, the formation of PAVE, and rampant allegations that all appraisers were racially biased and that appraisals themselves were racially biased. The basic goal; to erase the profession. Be a number hitter or be turned in. And several of these cases went to court. Yet not a single conviction by judge or jury. But… This in of itself drove a number of appraisers away. And in the meantime The Appraisal Foundation (TAF) did NOTHING to help the profession.
And while we are on the TAF subject lets discuss what they did do about the bias issues. Not only was the Uniformed Standards of Professional Appraisal Practice (USPAP) changed, revising and adding a significantly new section regarding Bias, DEI, and fair housing laws. TAF also made it mandatory to get a 7-hour class, followed up with another 4-hour class every 24 months. Here’s where I remind you that this very subject is also covered in your 7-hour USPAP refresher, ALSO required every 24 months! Redundancy at its finest at your expense. Yet, not a single appraiser accused of racial bias by judge or jury as of yet.
Then there are the Appraisal Management Companies (AMCs). I’ll start by saying there are some good AMCs, but those are few and in between. There is significant AMC corruption, theft, and a severe lack of oversight. The Appraisal Regulation Compliance Councle (ARCC) found that AMCs bilked borrowers out of some $12 BILLION over a 10-year period. And most of you are familiar with the scenario. The AMC receives an assignment, posts a bid request to the appraisers in that specific “region” (not necessarily the immediate vicinity), and the order is assigned to the lowest bidder. And… if they can’t get the bid low enough, they sit on the assignment (I’ve see as long as a week, even two in some cases) until some bottom feeder finally pops up and bids some ridiculously low fee, often extending the time from receipt to delivery. All the while the AMC is pocketing as much as 85% of the fee the borrower paid for the appraisal AND blaming the appraiser for the extended turn time! And in many situations, the bottom feeder IS NOT local or anywhere close and geographic competency is an utter joke. I have seen appraisal reports from Ocean Shores WA done by appraisers from Portland OR, which is some 166 miles away! In one such report I reviewed, the appraiser failed miserably with the demographics of this small ocean town with some very strange idiosyncrasies.
But, regulators continue letting AMCs get away with this. And now AMCs have infiltrated regulatory bodies, and even appraiser organizations, including the infamous Appraisal Institute. And why? The large AMCs have deep pockets and are well represented at both a state and national level, while appraisers’ representation is basically nonexistent. That 50 to 85 percent markup on the “appraisal” fee allows this to happen. So, AMCs rip off borrowers, buy their way into regulation, and have money for expensive lobbing at state and national levels! In other words, AMCs are now embedded in everything appraisal, including appraisals themselves because a significant lack of oversight at all levels.
And… We can’t end this discussion without addressing the increased operating costs and lower appraisal fees. It’s no surprise that everything required to continue appraising has gone up in price. New and continuing education (remember the added requirements for RB & Fair Housing?), insurance, appraisal software (which will skyrocket with UAD 3.6), appraisal tools (laser, I Pad, etc.), GAS, office supplies, and so much more! Then revert back to the fee discussion.
And in some states, licensing and renewal fees have skyrocketed. In Washington fees increased by as much as 85 to 100 percent, placing Washington in a close second to California for the highest application and renewal fees, now close to $1,000 per cycle.
While some will argue; quit doing lending and go private, been there, done that (for the most part), but in real rural areas, there is not always enough private work to fill the void. So… For some the costs outweigh the gains these days. And… If you’re just starting out and working for a fee split with your mentor, things can really be tough. Something I explain to every request I receive from those using TAFs veterans to appraiser information program.
So… While I appreciate the information provided by David, there is more than meets the eye in this exodus by seasoned appraisal professionals. And appraisal regulators and professional appraiser organizations don’t seem to give a rats patoot. In fact, many are in cahoots with the corruption!
This leads to the question; how do appraisers fix the situation? Well… If you don’t band together and become a whole instead of the now fragmented entity you are, things will continue to go down hill! For example, appraisers tired of Fannies and Freddies BS, quit doing appraisals for the GSEs. Tired of the AMC fee BS? Quite working for AMCs. Tired of the over regulation and poor representation? Write to those in charge, at both the state level and national level. Flood them with letters threatening a total shut down of the profession BY Appraisers!
You want to know why you get craped upon? You don’t band together as a whole. There is some 60,000 +/- appraisers out there. That’s a huge voice! A complete shut down would wake up the sleeping giant! The mortgage industry is a large economic contributor, and the US cannot afford an appraisal shut down. And Title 11, Dodd-Frank, and other lending requirements will continue appraisal requirements regardless of what the GSEs get away with. They are LAWs!
So, band together and make yourselves heard! It’s your profession that’s going down the toilet and the only ones that can fix it is YOU, the appraisers!!!
-by David Massey
You raise several concerns that many appraisers clearly feel strongly about, especially around fee compression, regulatory burden, waivers, hybrids, and the growing tension between professional judgment and institutional systems.
While I may not agree with every conclusion or characterization, I do think your comment reflects the depth of frustration many seasoned appraisers are experiencing right now.
My article was intentionally focused less on politics and more on the broader human side of the profession: burnout, loss of autonomy, declining satisfaction, and why experienced people are stepping away.
I appreciate you adding your perspective to the discussion.
-by David Eaton
I concur with all of the above comments by the appraisers. After 50 years in the business, I don’t do any more lender work for all of the above listed comments. In my view the industry really changed with the implement of AMC’s into the equation which have been robbing the appraisers for 16 years, while adding absolutely nothing to the overall process. All the AMC’s care about is who can do the assignment for the least amount of money and the quickest turn time…competency and knowledge of the market area have nothing to do with their assigning process…it’s all about the money. Doing appraisals with only the private sector now has been life changing for my business. When the lenders wise up and get rid of the robbers (AMC’s) and start paying a deceit fee again, they may see in increase in appraisers. Why any appraiser would continue to put up with the paperwork crap required by lenders and the low AMC fees is beyond comprehension.
-by David Rij
There are some very good comments here I agree with. I’ve been appraising for 38 years and the biggest problem as I see it is the appraisal fees. When you lower the appraisal fees you push out good appraisers. Borrowers are paying enough to hire good appraisers but the AMC takes a cut and bids out the report to the cheapest appraiser. Most of the best appraisers I know in my county do not perform lender appraisals. If I was the appraiser czar I would set up a system that hired the best appraisers rather than pushing them away, but that assumes you care about quality and Fannie and Freddie don’t. It’s only getting worse with AMC desktop appraisals paying the appraiser less than $100.
-by Anthony F.
Excellent article by David Massey. A very well articulated perspective. I have been appraising for 36 years and stopped accepting requests 3 years ago from those associated with mortgage lending and especially the GSE’s simply because they want to “modernize” a process on their end of the lending spectrum. I very much disagree that a large number of Appraisers are leaving the profession. Some may have decided to retire, but most Appraisers I’ve surveyed are redirecting who they want to do business with and how they want to conduct their specific area of practice. This includes independently selecting a client relationship, recognizing the scope of work involved, the level of liability and the time and expertise needed and at what cost to the client/intended user(s). Some Appraisers have other credentials and expertise which allows them to refocus their resources to public and private sectors where a high degree of competency and ethical conduct are valued. This about this and understand what all this truly means to you as a professional in a profession and not a cog in the wheel of industry and mass production.
-by David Massey
That’s an important distinction. I have made a similar shift myself. I still do valuation work, but much more of my practice is now non-lender work. I think many experienced appraisers are becoming more selective about where and how they practice. I appreciate you adding that perspective.
-by Jared R
The article is well written but stops a little short I think on the AMC issue. I am in Arizona where fees are disclosed by state law in the report. This doesn’t make a difference. The AMC model does not work. It is literally in their best interest to go with cheapest appraiser. Lender discloses a fee of $700 to client. The lender send to the AMC. The AMC makes more assigning to a $350 appraiser(who may be the worst appraiser or may not). They make $350 in this scenario. In what world would it make sense to assign to the more qualified appraiser who quote $550, or more in rural areas. The AMC and appraisal fee disclosure needs to be separated from the get go. They cannot be lumped together. The lender, borrower, and agents involved (if a purchase), all want a good appraisal, not the cheapest appraiser, but it is not in the best interest of the AMC to assign that way because they have a financial interest. This is what hurts the level of trust in the industry and appraisers are fed up with being underbid.
Mandate separation on the disclosures, up front, between AMC and appraiser fee. Even if lenders disclose a higher fee to the borrower, the AMC takes a higher fee. If they can get the assignment filled for less, they will, because its smart business. I don’t have this issue with lenders who use platforms instead of AMC’s. Either the AMC model needs to change (flat fee disclosed up front), or they need to be removed.
I do tons of referral work for lenders and agents who trust my work, but can’t get the lending assignments because I’m underbid. Then the lender and agent come back upset because they got an inaccurate, unsupported appraisal, by someone rushing to provide a cheap appraisal.
-by George Edward Brown
I earned my SRA in 1987 and immediately received assignments. I opened an office condo’ hired staff and went happily upon way to a successful career. I didn’t need or want USPAP, The Appraisal Institute’s code of conduct and ethics adherence were all we needed. Earning my SRA was difficult but anything worthwhile is. Then came Doug Barnard, Representative from Georgia, and a whole new layer of bureaucracy was created, nationally and statewide. As in all professions there are crooks, there is a lack of ethics, corruption exists and always has (mostly in government) but bad appraisers and bad appraisals will weed out the inept, the crooked, the cheaters (except in government)
-New levels of bureaucratic nightmares were created to oversee an industry they knew nothing about or cared. It was the beginning of the end. All kinds of useless (but costly!) levels of oversight were such as USPAP, Appraisal Qualifications Board, Appraisal Standards Board, etc. and our freedom was diminished and restricted by office workers who never worked in their office but dictated from DC how we were to conduct our business. Like so many professions, if we knew how oppressive and restrictive they would become, we would never pursue such a career. DEI finished destroyed meritocracy and principles. An oppressive and corrupt government has replaced the Constitution. Yes, Trump won but so many powerful groups are salivating to kill him and revert to waste, inefficiency, nepotism, added layers of decline, rewarding the least qualified. It’s inevitable China replaces America in production, innovation, work ethic, concentration on engineers and engineering instead of millions of “college graduates” seeped in debt and useless degrees which were easy to obtain but of no practical value.
by Randy
Think it is bad now wait until after Nov. 2mnd with 3.6
-by Bruce Dilgard
I’m 76 now. Began appraising 40 years ago. Only do a few appraisals per month now to supplement my SS. I will retire on or before Nov. 2nd, as I don’t care for the coming transition to 3.6. My current clients (mostly banks) have been accepting my work for years with minimal revision requests.
-by m w
None of that matters when I dont get paid. When some lender wants to pay me $400 to drive an hour to do a 1025, i might as well go work at fast food with zero liability or headache.
-When I ask for my reasonable fee that covers the cost of my time, the cost of MLS/ins/software and my time and expertise-nobody wants to pay the $1200 its worth.
In town my time and effort are worth over $625 plus portal fees(portal fees!!!!)
Break down how much time you did on a single typical report.
Add up the typical cost of driving to your average distance.
Then take your total annual cost for all the things-MLS/tools/software/driving…. and divide by the number of reports you did last year.
did you make minimum wage?
by Daniel A. Splendido
After 22 years I shut down my appraisal business last year. Real estate appraising was a respected profession. Dodd-Frank, AMCs, and those GSE monkey houses FNMA and FMLC unfairly waged war on the appraisal profession. Even though I was able to avoid groveling to AMCs, the ridiculous amount of paperwork, excessive over analysis and government overregulation caused me to retire. In addition to the lack of respect the profession now receives. Would I start the business in today’s climate? ABSOLUTELY NOT!
-by M Roland
I did the same thing, after 15 years. I had finally had enough and I’m so happy with my choice. No more 18 hr workdays. It got to the point that I was doing more work but not getting pay increases.
-by Robert Mossuto Jr
Agree!! I shut mine down in January of this year!
-by Jeffrey G Hayes
The article by David Massey is well written and spot on. Thank you for your insight.
-by David Massey
Thank you. I appreciate that. I think many in the profession recognize these pressures, even if they experience them differently.
-by Doug
I have been in this business for 29 years. I’ve seen the trends. The scope goes up, and the fees barely move. When the HVCC went into effect my fees went down 30%. What business can survive with that kind of reality. There is no possible way to make a living in this business with the present system. The fee for a typical appraisal should average at least $650 based upon inflation and the scope for work. But then these delivery portals scum off their technology fees which on one portal is nearly $50! Then there are the idiotic regulations such as measuring to the nearest inch. That is a joke. The comparable don’t even come close to that, and surely the assessors don’t. So when appraisers get all these regulations and demands thrown down their throats and there isn’t the compensation, they quit or go to another profession. The new UAD 3.6 is just another example. Why do they want the measurement of the height from the bottom of the front door sill to the ground? Makes zero sense. They have the front photo!! They should be able to tell if there is going to be an access issue. I’m retired, so I only do part-time work. And I only do work when I get my fee. But AMCs are cheap. And with the new forms, I’m less inclined to continue. But I am thankful I don’t have to try and make a living in this environment. I don’t see how it is possible.
-by Jerry Allegro
Cute article but the total corruption of this industry is the true reason. AMCS take care of themselves first. You could live next door to a property and the bid goes to an out of area appraiser who works for nothing and is first on their list. Bids are a joke as they have already assigned it to the one they know is the cheapest not best. They are just taking fee surveys.
-The corruption of the state agencies bending to lawyers at banks is criminal when they persecute honest appraisers whom they hate for standing up to them and calling them on their corruption and crooked dealing, persecution is rampant and swift for anything minor they can fabricate and let truly corrupt appraisers go unscathed despite pages of documentation. Texas is the most corrupt in the nation. Need samples just ask. Appraisal standard board is a joke as they force uspap down our throats but have no regard or enforcement against the states for the abuse we have to take for their states selective enforcement.
I’m counting the days to get out of thus industry. I won’t train anyone anymore and am running to get away. After 42 years I have had enough.
by David Massey
I hear the frustration in your comment, especially after 42 years in the profession. Even when people disagree on causes or solutions, I think many experienced appraisers recognize the exhaustion, pressure, and growing disconnect between professional judgment and the systems surrounding the work.
One thing that stood out to me was your comment about no longer wanting to train anyone. To me, that may be one of the clearest signs of where the profession is right now. When experienced people stop wanting to pass the work on, something deeper is going on.
I appreciate you sharing your perspective.
-by Todd Kenneth Ligon
You hit the nail on its head. The fees are the main reason for the exodus. More work for a lower fee. While we see other professionals in the real estate transaction getting higher fees (inspectors, surveyors, etc…) the appraiser continues to be minimized to a turn time and a lower fee. There is literally not one organization that claims to represent appraisers addressing The Fee situation. Why is that?
-by Kenneth Mullinix
I agree with some of David Massey’s points, but I think he still stops short of the real issue. The profession is not just suffering from “burnout,” paperwork, or AMC inefficiency. The appraisal industry is being systematically engineered into irrelevance by the lending and banking system itself.
They do not want slower loan closings. They do not want independent third-party valuation experts acting as a backstop against inflated values, risky lending, or bad underwriting decisions. They want speed, automation, and control. The appraiser is one of the last independent parties left in the mortgage process who can stop a deal cold — and that directly conflicts with the modern lending model.
That is why the industry has slowly shifted toward AVMs, hybrid products, bifurcated reports, desktop appraisals, data collectors, waiver systems, and algorithmic valuation models. The goal is not “helping” appraisers. The goal is reducing reliance on them altogether.
The AMC system accelerated this decline dramatically. Appraisers lost direct lender relationships, lost fee control, lost communication access, and became commoditized production vendors inside portal systems. The borrower may pay $700, but the appraiser gets half while assuming nearly all the liability. Meanwhile, the lender and AMC still control the pipeline and the timing.
That is not a healthy professional structure. It is an extraction model.
The industry also ignores the larger financial incentive behind this. Appraisers are inconvenient to lenders when markets are rapidly appreciating. A conservative or well-supported appraisal can kill a refinance, reduce a cash-out loan, or stop an overleveraged purchase. From a production standpoint, appraisers are friction. The system wants less friction.
That is why experienced appraisers are leaving and trainees are not entering the field. Young people are looking at:
massive liability,
declining fees,
endless revision requests,
automated scorecards,
AMC pressure,
increasing federal scrutiny,
and shrinking professional independence,
…and deciding it is not worth it.
The profession used to be built around local market expertise and analytical judgment. Now appraisers spend enormous amounts of time satisfying overlays, portal conditions, photo labeling rules, revision loops, and clerical review comments generated by people who often have little or no field valuation experience.
At some point the profession crossed the line from “professional analysis” into “compliance production.”
The dangerous part is that the banking system still needs credible collateral valuation during downturns. Everyone wants to eliminate appraisers during rising markets, but when the market crashes, suddenly independent valuation experts become critical again. The problem is that by then, many of the experienced professionals will already be gone.
The industry is creating a future where:
fewer appraisers cover larger geographic areas,
competency declines,
appraisal quality becomes inconsistent,
fraud detection weakens,
and institutional AVM dependence increases systemic risk.
That is not modernization. That is removal of a risk-control layer from the lending system.
Technology should assist appraisers, not replace them. A skilled appraiser understands market psychology, property appeal, neighborhood nuance, external obsolescence, construction quality, remodeling credibility, marketability, and local buyer behavior in ways algorithms still cannot fully replicate.
The irony is that lenders spent decades depending on appraisers as a legal shield and underwriting backstop, then gradually dismantled the profession the moment technology offered a way to bypass independent judgment.
The appraisal profession is not collapsing because appraisers suddenly became less valuable.
It is collapsing because the financial system increasingly sees independent human judgment as an obstacle to production volume.
-by Mark R
To sum it up. since ~ 2008, Residential, Independent-Fee Appraisers have been on the chopping block from pressure from FHA/HUD and all of their massive fraud and criminality on fraudulent Loans and ‘underwriting’ + the Lenders, Banks and Realtors whom all want ever – sky-high Prices/Valuations and this Profession is on extinction warning. There are simply hardly any Orders from Lenders other than Broadcast – cheapest/quickest and the pay is beyond a joke as the AMC’s steal half or more of the Fee, whilst doing virtually NOTHING. What other Profession receives the SAME Pay from 15 – 20 yrs ago?!? …while doing 2x the work? With benefits and vacation, McDonald’s and Starbucks may be a better option.
-by joe giacoletti
David:
-Your comments struck to the heart of my decision to pass on Fannie Mae’s new 3.6 UAD format. I no longer will be restricted by their demands as to what constitutes an opinion of value. After 40 years enjoying this wonderful profession , it is time to move on.
by Bruce Dilgard
Well said Joe. I’m certain that your words speak for many experienced appraisers. Many AMCs are still paying appraisers the same fee as 15 years ago, despite the little the AMC contributes to the process. First, the AMC should openly state the fee paid by the client (as well as the fee paid to the appraiser). Then, the appraiser should be paid the vast majority of that fee. I’ve never worked for an AMC, but it’s difficult for me to believe that the AMC spends as much time on any appraisal as the appraiser does. If they do, they’re highly inefficient. The parasitic relationship of the AMC upon the appraiser must cease.
-by David Massey
You could respond in a way that honors his decision without sounding defensive or overly sentimental:
I understand your decision, and I think a number of experienced appraisers feel the same tension right now.
Some are adapting to UAD 3.6. Others are deciding they no longer want their professional judgment increasingly shaped by rigid data structures and automated expectations.
Either way, after 40 years in the profession, you’ve earned the right to decide how and where you practice. Wishing you the best in whatever comes next.
Or, if you want something a little firmer and more aligned with your article’s themes:
Your point highlights something important. For many appraisers, this is no longer just about learning a new format. It’s about the growing feeling that professional judgment is being compressed into standardized data fields and rules designed more for systems than for people.
Some will adapt. Others will decide the profession they entered decades ago is no longer the same profession.
After 40 years, that’s a hard conclusion to reach, but an understandable one.
-