According to this realtor.com post, the number of real estate appraisers is dropping to the point where parties on both sides of real estate transactions could suffer. Since most residential mortgages need an appraisal before a sale closes, a shortage of appraisers will affect buyers, who rely on accurate valuations to structure their offer, and sellers, who can lose a deal if appraisals come in low.
The Appraisal Institute notes the number of appraisers has dropped 20% since 2007 and predicts a 3% annual decline for the next decade. Fewer appraisers means longer waits, which could delay a closing. That delay means that buyers (borrowers) might have to pay for longer mortgage rate locks and sellers, who need the equity from the sale to purchase their next home, might miss opportunities to bid.
A shortage also means appraisals will likely cost more. Even worse, there could be quality issues as appraisers work outside areas where they are geographically competent; they could miss nuances of the unfamiliar market. To read more click here.
This article was first published on https://www.teamrealty.ca.