FOR IMMEDIATE RELEASE
AFRICAN AMERICAN REAL ESTATE APPRAISERS
A NATIONWIDE SHORTAGE
Potential for Property Devaluation in Urban African American Communities Looms
Chicago, IL, September 6, 2017 – The role of a Real Estate Appraiser is to provide an objective, impartial and unbiased opinion of the value of real property.
An appraisal, however, lacks credibility when the
Appraiser has no competency in terms of familiarity with the market in
which the property is located. A good understanding of appraisal
methodology and numerology is not a substitute for an Appraiser’s
working knowledge of the dynamics of a specific neighborhood. Today’s
urban neighborhoods can encompass as little as a few blocks and most
homeowners are more knowledgeable of their neighborhood’s boundaries
than are some Appraisers.
It is not uncommon for two certified Residential
Appraisers to arrive at widely varying conclusions of value for the same
property as of the same date.
Two major factors in the discrepancies between their
opinions of value are often the level of their familiarity with the
neighborhood and their subjective interpretation of its quality in terms
of its schools, churches, homes, businesses, transportation access and
other significant factors.
A common result of an Appraiser’s lack of familiarity
with a property’s neighborhood is a devaluation of the property.
Because suburban markets often set the standards for what constitutes
the quality of a neighborhood. There is a real possibility that an
unfamiliar Appraiser will misinterpret the quality of a culturally
diverse urban African American neighborhood.
It can take as few as three homes in a neighborhood
that have recently sold relative to the date of the appraisal below
market prices to create a market that devalues other properties in the
area. Other Appraisers working in the same neighborhood using the same
sales of the lower valued homes as comparables, results in a
continuation of lower property values in that area. Banks often
interpret this as evidence of a declining neighborhood and become
reluctant to approve loans in the area.
Real Estate Appraisers in general are an aging
population, according to the Appraisal Institute, the nation’s largest
professional association of Real Estate Appraisers. More than half of
the Appraisers in the U.S. are 51-65 years of age and there is general
agreement within the industry that there is an imminent overall
Appraiser shortage. One can be certain that although the number of
African Americans among this aging population is very small, the number
of those who are close to obtaining the necessary education and
experience to replace them is in all probability even smaller. This is
due primarily to the difficulty in obtaining the required experience,
which can only be provided by working as a trainee under a State
Certified Appraiser.
A shortage of African American Real Estate
Appraisers has the potential to perpetuate property devaluation in
African American communities throughout the United States.
Although many State Certified Appraisers have been
reluctant in the past to take on trainees, African American trainees in
particular are more likely to find it more difficult to locate a mentor.
There are, however indications of some opportunities
for improvement. Some of the reasons for these indications of
improvement are that there are Appraisers who have no desire to accept
appraisal assignments in African American neighborhoods, while others
refuse assignments because they lack familiarity with these culturally
diverse urban communities. The benefit of taking on African American
trainees is that their supervisory Appraisers will be able to expand
their offices’ earning potential ($300-$500 per single family appraisal)
by accepting a broader base of appraisal orders through partnership
with a broader and more diverse base of appraisers.
Mentoring opportunities for African American trainees
would significantly increase as well if the governing body for
Appraisers (The Appraisal Subcommittee (ASC), lenders and appraisal
management companies (who generate most of the appraisal orders due to
the Dodd–Frank Wall Street Reform and Consumer Protection Act,
which was signed into federal law by President Obama on July 21, 2010)
would work together to implement and enforce stronger regulations. These
new regulations could insure that Appraisers adhere to a principle of
geographical competency and have a verifiable working knowledge of the
neighborhoods in which they appraise.
Currently Appraisers can provide appraisal management
companies with a list of areas that they cover without adequate
oversight and verification. This practice is conducive to a focus on the
quantity of appraisal assignments instead of their quality and has the
potential to negatively impact property values in all communities across
the United States.
In her new book, How to Become a Real Estate Appraiser- 3rd Edition,
veteran Residential Real Estate Appraiser with over 30 years of
experience Sharon P. Carson provides unique and valuable insight into
the Residential Real Estate Appraisal profession.
The book is a practical guide to becoming a Real
Estate Appraiser and provides a look into the profession and its
entrance requirements as of the date of publication. It is the author’s
opinion that this is an often-ignored profession that offers enhanced
entrance opportunities due to what many in the industry consider an
imminent Appraiser shortage.
The book is available through Amazon.com as a paperback or a Kindle edition
About Sharon P. Carson
Sharon Carson is a State Certified Real Estate
Appraiser who has been practicing in Illinois. Sharon has performed
residential real estate appraisals for government agencies and some of
the largest lenders in the United States.
Sharon was one of the first amongst very few African
Americans within the United States, to earn the highly coveted RM
(Residential Member) Designation through the American Institute of Real
Estate Appraisers (now known as the Appraisal Institute)
Contact Sharon Carson
E-mail: sharon@sharonpcarson.com
Phone Number: (773) 568-2274
