Lack of Awareness

Admittedly, appraisal is not seen as a glamorous career choice, but the profession has less of an image problem than an awareness problem. This industry tends to be something people back into and do not directly seek. Most newly minted college graduates aren't even aware of appraisal as a viable career option.

An informal poll of BBG's younger appraisers confirmed that most were referred or got here by chance. One of our senior managers, who entered the profession at age 22, didn't even know what an appraisal was until a friend advised him to pursue this career.

Somewhere along the way, someone took the time to educate them about what the appraisal profession has to offer. Established appraisers have a responsibility to do the same. Talking up the profession is critical in the current climate because lack of awareness could be compounded by steeper barriers to entry and advancement.

Impact of Regulations

As appraisers are well aware, the educational, experience and examination requirements to become certified are onerous and, at the same time, fees for appraisals are decreasing. As a result, some real estate professionals point to a perceived cost-benefit imbalance and steer young people away from the appraisal option. On one online forum, a broker told someone considering appraisal that, starting out, the job “borderlines on being volunteer work.” Of course, we know that appraisers who hustle can earn a decent living from the start, and we need to amplify their voices and share their success stories.

Since most young people have no knowledge or impressions of the industry, we have an opportunity through outreach efforts to craft the messaging. Despite its stodgy image, the appraisal profession holds a lot of appeal for millennials, who prefer flexible hours and opportunities to work remotely.

Ideas to Attract Young Talent

Recent studies show that millennials aren't as fickle as previously believed and actually crave job stability, so we can emphasize that appraisal is not as volatile as other areas of real estate.

Trumpeting the industry's use of technology might also attract young people.

Social media is a great way for all of us to freshen the industry's image. We try to project a vibrant corporate culture and show that our company and employees are active and do charitable work and support good causes, which is important to millennials.

Beyond that, as an industry we need to band together to elevate our profile and attract new blood. The Appraisal Institute plays a crucial role, but it is only as strong as our support of it. One idea is for each local AI chapter to get involved with nearby universities, where younger appraisers could talk to real estate classes and attend job fairs.

Or perhaps approaching universities with a sample curriculum would make appraisal courses available to more students. Even funding a scholarship might prompt students to look into the appraisal profession where formal instruction is not an option.

Real estate appraisal firms that have the means to do so should offer internships and mentorship programs. Companies and AI chapters could provide scholarships and other forms of support to meet stringent educational requirements for licensing and to achieve designations. We provide on-the-job study time and financial compensation for testing fees, for example.

On the flip side, there need to be incentives for firms to take on trainees. Unfortunately, it's not always economically viable.

Last but not least, we need to flex the AI's lobbying arm to address regulatory burdens and licensing requirements.

Many of our appraisers support bringing back pre-2008 education requirements, but there are those who devoted time and effort satisfying the current standards who feel their investment would then be depreciated. It can be a sensitive issue, but it's one of the biggest reasons our industry is losing people. For example, the state of Texas has 900 trainees statewide but the problem is getting them through the system.

Those who stay are saddled with the “trainee” designation for three years. Millennials are ambitious and expect rapid career advancement, and though they're eager to learn the ropes, the prolonged trainee status may seem like a badge of dishonor. It's time to drop that title because it's a liability, as lenders balk at working with trainees.

The Time is Now

We are fortunate to have several rising stars as well as seasoned appraisers on our team, and since the industry as a whole is losing talent, we feel called to use our strengths and stature to reverse the trend. We challenge our colleagues to do the same.

Chris Roach is CEO of BBG, a national commercial real estate valuation, advisory and assessment firm. The views expressed here are the author's own.