Survey Says Appraisers Foresee Continued Growth

Posted by Patrick Barnard on October 22, 2013 No Comments
Categories : Residential Mortgage

Appraisers expect continued growth in mortgage lending appraisals and in specialized areas of consulting, according to a recent survey conducted by the Appraisal Institute, an association of real estate appraisers.

Commercial appraisers say the top-five areas of growth in the next one to two years – in order of potential – are mortgage lending appraisals, land valuation, litigation valuation/forensic appraisal, real estate consulting (fee-based) and right-of-way/easements. Residential appraisers say the top-five areas of growth are mortgage lending appraisals, review appraisal services, real estate owned/foreclosures/short sales, litigation valuation/forensic appraisal and land valuation, according to Appraisal Institute.

The survey also finds that large proportions of commercial appraisers anticipate growth in specialized areas of valuation consulting, such as valuation studies that provide support for litigation (24%), due diligence analysis in support of client acquisition or sale decisions (24%) and market studies (23%). Residential appraisers anticipate more demand for property inspections (16%), marketability studies (13%) and market studies (12%).

Also according to the results, substantial proportions of commercial appraisers anticipate more demand from financial institutions (47%), law firms/lawyers (33%) and government agencies (25%). Residential appraisers anticipate a different mix of business, predominantly from appraisal management companies (36%), financial institutions (34%) and property owners/buyers directly (33%).

Sizeable percentages of commercial appraisers anticipate more demand for summary appraisals (44%) and limited/restricted use appraisals (33%) during the next one to two years. Residential appraisers anticipate more demand for summary appraisals (37%) and limited/restricted use appraisals and desk appraisals at 29% each, Appraisal Institute finds.

The results also conclude that significant portions of commercial and residential appraisers anticipate less demand for complete/self-contained appraisal reports – 31% and 21%, respectively.

Appraisal Institute notes this online survey polled 591 real estate valuation professionals from May 31 to June 17. The survey had a margin of error of +/- 4 percentage points.

To view more results of the survey, click here.

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