The second issue is the demolition and land reutilization policies in the areas where minorities currently reside. Many communities across the country are experiencing an aggressive demolition policy that does not consider the possibility of saving homes and renovation programs. This is due to the lack of financing and/or community reinvestment by the banks in the area. While there may be an oversupply of houses in some areas, it appears that the plan to raze homes is not directional. The third issue is the significant decrease in the number of qualified appraisers with experience in appraising property during an unstable or declining market era. The industry has experienced a 15-30 percent decline in the number of licensed appraisers in the country. The average age of the appraisers is current 60+ years and the requirements to become an appraiser have been increasing over the past five years. This situation will result in a limited number of appraisers available to value the market once there is recovery in the markets. This is further impacted by the fact that it takes five years for a training appraiser to become seasoned enough to perform at the journeyman level. Considering the complexity of appraising in unstable markets it is critical that there is a supply of trained valuators to perform appraisal services in urban and suburban markets. The fourth issue is consumer information and/or knowledge of the valuation process and the impact that appraising has on the community overall. Recommended Solutions: 1) NSREA along with NAREB should meet with the FHA concerning its policy and procedures for assuring fairness in the selection of appraisers. There should be a training program that addresses the diversity issue and FHA’s written policy. This would increase the awareness that the FHA has such a policy and is monitoring the program. 2) NSREA and NAREB need to review the land reutilization policies across the country, specifically in areas where minorities have a significant number of homes. Based on this study, meetings with land banks and city officials should be arranged to develop policies that include NAREB/NSREA suggestions for renovating and redeveloping the communities. 3) NAREB and users of appraisal reports should work with NSREA in our efforts to develop programs to train the next generation of appraisers. NSREA has a program in place that seeks out high school and college students who show potential for a career in a real estate- or finance-related field. It is titled “Training the Next Generation of Appraisers.” The program is designed to use current efforts of the Appraisal Foundation and other appraisal organizations to train the future appraisers to meet industry requirements. 4) The Appraisal Foundation and NSREA’s Executive Vice President are currently implementing a Consumer Education Program that is designed to educate the public, and specifically consumers, on the appraisal process and its impact on values and the community. NAREB’s SHIBA program would benefit and serve the community as part of its efforts to communicate the valuation aspects to consumers in minority areas.
David Harmon, SRA, IFA, RA, GRI, CRP NSREA, President
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The State of Housing in Black America 2013