Certified Appraisers Reach All-Time High

While the number of individuals looking to become appraisers is falling, an uptick is taking place for those currently working in the industry gaining certification.

According to the Appraisal Subcommittee National Registry, there were nearly 6,000 more certified general and residential appraisers through December 2012 than at the end of 2006. However, for the same time period, there was a decline of approximately 16,000 licensed appraisers, a drop of about 3% per year.

Overall, the proportion of certified appraisers to total appraisers was 72% at yearend 2006. As of December 2006, the proportion was 87%, which represents an all-time high.

The Appraisal Institute said about a third of the total decline occurred because appraisers achieved certified status. Also, a large majority of appraisers who left the profession in the past three years only had a license and were relatively new to the industry and did not pursue certification, the AI noted.

Therefore, while the total number of appraisers has decreased 5% since 2007, the data indicates that the appraiser population is more qualified overall.

“In spite of a higher level of appraiser qualification overall, the lack of career prospects for trainees and few new people entering the profession are legitimate and serious issues, yet opportunities do exist to reach the next generation and employment options will, in fact, likely be enhanced in the coming years,” said Richard Borges II, president of the Appraisal Institute.

With more than half of U.S. appraisers aged 51 to 65 and the appraiser population possibly decreasing by 25% to 30% over the next 10 years due to age attrition and fewer new entrants, the nation’s largest professional association of real estate appraisers sees a growth opportunity for individuals with advanced analytical, financial and mathematical skills to pursue a career in commercial, nontraditional valuations.

Borges said that key growth markets might be working with accountants, financial analysts, investors and others on real estate portfolio management, purchase, lease and investment packaging. He added that additional areas of real estate valuation—right of way, conservation easement, taxation issues and litigation support—could provide another chance for individuals looking to enter the valuation profession.