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News

Why Are Appraisers So Happy With Their Jobs?

April 15, 2021 by Shauna Hatch Leave a Comment

An appraiser standing in front of a home.

Who’s happy at their job?

Real estate appraisers are!

Appraisers have higher-than-usual job satisfaction. With an impressive job satisfaction rating of 79.4 percent, real estate appraisers in the United States are generally much happier at their jobs than other Americans are. It’s a sad truth, but only a pitiful 54 percent of American workers report that they are satisfied with their jobs! That’s a pretty disheartening reality.

Why are appraisers so happy with their jobs? According to McKissock, the top five reasons appraisers are satisfied with their jobs are:

  • Flexible schedule
  • Healthy work-life balance
  • Respectable income
  • Challenging work
  • Diverse work opportunities

What makes real estate appraising so enjoyable? What exactly do real estate appraisers do?

I asked several appraisers about their routines for a typical day. When I got the results and looked through them, it was clear that there is no “typical day”. Their answers varied, sometimes significantly. So rather than summarize a typical day for all appraisers, I’m going to report some of the responses I got. After all, the results show the reasons why appraiser love their jobs! An appraiser’s day clearly demonstrates the flexibility of real estate appraising. And flexibility is one of the top reasons that appraisers love their jobs!

Starting The Day

Man lying in bed with hand on an alarm clock.
Starting the day late or early?

Every appraiser sets up their own agenda. Appraisers who work in small offices or for themselves tend to have more flexibility with their schedule versus appraisers who work for large offices.

The appraisers that I interviewed reported a variety of times that they started their day. One appraiser said that he wakes up between 2 a.m. and 3 a.m.! Most of the other appraisers got up between 5 a.m. to 7 a.m.

Some appraisers get right to work, often within 30 minutes of getting out of bed. Others take some time for themselves. Some have developed morning routines to help them function with better mental, spiritual, and physical health. One such appraiser described his morning routine:

I’m religious, so I read the scriptures for a few minutes each morning.  I then head downstairs to my home gym to exercise for 30-45 minutes (if I slept well).  I find a routine of spiritual and physical exercise helps me feel more fulfilled and sets the right tone for the day (He who wins the morning, wins the day).  I then have a nutritional breakfast with my family. I usually prepare this meal, which consists of either oatmeal and a toasted peanut butter and honey sandwich or an egg dish for protein.

Gentry

Inspections

Appraising a Home
Inspections take up a chunk of each day.

After getting started for the day, the appraisers reported starting their workday anywhere from 3 a.m. to 9 a.m.

Paperwork made up the first hours of the day for the early risers since no homeowner is going to let an appraiser in for an inspection in the middle of the night!

Inspections often started the workday for our later risers. The variety in the scheduling is another example of the flexibility appraisers have. They can easily adapt their schedule to fit their work-order preferences.

As for how long it takes them to appraise, the amount of time it takes to inspect a home varies. Some appraisers reported that it takes half an hour to an hour to inspect one property; others reported that it takes them an average of two hours per property. That’s a big range, likely caused by the type of properties the appraisers focused on (that would be another interesting blog post!) and possibly by their thoroughness as well.

Some appraisers schedule appraisals every day, while others have inspection-only days and office-only days. For appraisers who inspect and do paperwork on the same day, they fit in some inspections then return to their office to work on the reports. Sometimes they inspect properties in the morning then do reports and finish up with more inspections in the afternoon. Again, part of the appeal of being a real estate appraiser is the flexibility! (I might say that a LOT in this post!)

Paperwork and Phone Calls

A stack of paperwork
Paperwork, and so much of it!

Paperwork, the bane of many workers, is an integral part of real estate appraisers’ work! Seasoned appraisers reported that they spend about 2 to 3 hours on each report. Less experienced appraisers noted they spend about 4 hours of paperwork per report. (This is the perfect time to mention DataMaster! We save you time on your assignments, up to an hour or more! Call us at 801.657.5769.)

Responses about time on the phone ranged from about half an hour to 2-3 hours per day. One appraiser specified that appraisal issues took up about an hour, and industry issues another 1 to 2 hours. The role of assistants is significant here, one appraiser stated:

My office assistant does the scheduling and file set up for me. As a results, my phone time is drastically cut so I’m only on the phone for maybe 30 minutes a day on average.

Gentry

Time To Eat!

Time for lunch!
Time for lunch on the go!

So, they’re busy, running to inspections and working on paperwork. Do appraisers have time to eat? The majority of appraisers that I interviewed said that if they ate lunch, it was “on the run.” Jared reported that his lunch was often “not healthy, usually I take a sandwich with me on the road; I eat a lot of sunflower seeds.” One appraiser did a little better with trail mix and a protein bar but said lunch was “extremely short.”

Calling It A Day

It can be hard to call it a day when you work from home. It can also be hard to call it a day when you’re very busy, which most appraisers are (hey, this is 2021!). Most appraisers reported that they were done around 5 p.m. to 6 p.m. but often fit in paperwork later in the evening or on Saturdays. One appraiser, the one who gets up between 2 a.m. and 3 p.m., said that his day ends at 8 p.m. to 9 p.m., and he’s in bed by 10:30 p.m., only to get up 4 hours later! Now that’s a long work week!

The Hardest Part About Appraising

Dog biting a shoe.
Don’t Worry! He Won’t Bite!

The hardest part about appraising is another subject that could be a whole other blog post! But let’s keep it short. The top reported difficulty was dealing with people. One appraiser said that he dislikes:

Trying to figure out why people do things and what their motivations might be in order to determine a market value.

Keven

Another appraiser reported:

I have a distaste for arguing with homeowners/realtors about value. I’m non-confrontations so contention gives me anxiety.

Anonymous

Another downside to appraising? Dealing with animals! One appraiser reported that he’d been bitten by dogs six times over the past 25+ years! “Don’t worry, he won’t bite!” just doesn’t cut it! (Put your dogs away BEFORE the appraiser arrives!)

Retiring

An odler couple standing on a mountain.
Started as an appraiser, retired as an appraiser!

We’ve established that appraisers can set their hours, take on as much or as little work as they’d like (the long workday versus the shorter workday) and that they often work from home. If they’re so content with their jobs, does that mean that they stick with their careers longer?

It would appear so! The average appraiser is 50 years old! More than half of appraisers have over 20 years of experience and are nearing retirement age! Longevity is a good indication of job satisfaction. The challenge is bringing in younger appraisers and educating them about the flexibility that appraisers have, the healthy life-work balance, the respectable income, the challenging work, and the diverse work opportunities!

Conclusion

Real estate appraising is a challenging yet flexible, esteemed career. Taking a peek into an average day for an appraiser shows that average days can vary according to the appraiser! A typical day for one is not necessarily a typical day for another! And that’s what makes it so appealing!

As one of the highest-rated careers for job satisfaction, real estate appraising is a job worth looking into.

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Filed Under: Appraisal Business, General News, News, Uncategorized

The Road Ahead for Uncertain Times

January 27, 2021 by Marty Hamilton Leave a Comment

DataMaster Pro Podcast preparing for uncertain times

If 2020 taught us anything, it’s that we have to be comfortable with uncertainty. However, that doesn’t mean we can’t do anything to prepare. (Even if the future is anything but predictable.)

Recently, we held a webinar to discuss what appraisers can do in uncertain times to thrive in the future.

This is the first episode of our podcast. So we thought we’d share it with all of you.

Jared Preisler, SRA and Keven Ewell joined us to talk about changes to the appraisal industry with the pandemic. They discuss the Federal Housing Finance Agency’s new RFI on changes to appraisal forms. They also share resources you can use to feel less uncertain.

https://fast.wistia.com/channels/q1qpcfyrwn/rss

Filed Under: Appraisal Business, News Tagged With: podcast

Appraising in 2021

January 15, 2021 by Shauna Hatch Leave a Comment

Appraising in 2021!
Sold! It’s a seller’s market!

Appraising in 2021. How will it fare? Everyone agrees that 2020 was a highly unusual year in many ways. The real estate market defied expectations and flourished when many other industries struggled.

Many industry cohorts wonder if housing sales and refinancing will continue to surprise this year! We wonder, will appraisers stay as busy as ever?

While we have no crystal ball, we will examine 2020’s real estate and make a foray into predicting what 2021 will do. Will appraising in 2021 be better or worse than in 2020?

National Housing Prices in 2020

Appraising in 2021 might go up!
Housing prices in 2020 skyrocketed

According to Realtor.com, the median listing price of homes in the United States grew 13.3% in 2020. And according to the National Association of Realtors, the median existing-home price for all housing types in November 2020 was $310,800. This is a 14.6% jump from the year before.

Despite the rise in prices, home sales hit a 15-year high in November of 6.69 million units for existing home sales. New homes hit 841,000 units in the same month. With all of this selling going on, appraising in 2021 will stay strong!

Is this rate of selling sustainable for 2021? As the median existing-home price rises, more and more families in America are finding it difficult to own a home. According to a new report from property data firm Attom Data Solutions, owning a home was affordable (where housing costs exceeded 28% of the average household’s income) for only 41% of the counties nationwide as of the fourth quarter of 2020.

The question that more and more Americans are asking is, “Can I own my own home in 2021?” And the question that appraisers are asking is, “Will appraisers stay busy?”

Why Did Prices Rise So Much So Fast?

Will prices continue to rise?
Why did prices rise?

The record-breaking lows of the average fixed mortgage rate triggered a rush on refinances. It also triggered a rush on the limited number of homes which were available. With historically low interest rates and heavy competition for the homes, housing prices rose quickly. Many first-time buyers were pushed out of the market and many current owners contentedly hunkered down and watched the equity in their homes grow.

Not only did the historically low interest rates contribute to the rise in home prices, but new home construction didn’t keep up. According to research by Freddie Mac, as we entered the 2020 pandemic, the housing supply was short by 2.5 million units.

There are fewer homes for sale today than there have been in the United States during the last 40 years! This, combined with the low interest rates and the unwillingness of homeowners to sell during a pandemic, caused the jump in housing prices. The increase in home prices is a boon to real estate professionals and home sellers, but a bane to buyers.

As we all know, the root cause of these price-raising factors was Covid-19. We’ve all been inundated with analysis and opinions on this historical pandemic. It’s clear that the lockdowns and fear over contracting the virus were the impetus for the lower mortgage rates.

What About Housing Prices in 2021?

Housing Supply

Houses will sell quickly in 2021!
Houses will sell quickly in 2021

A couple of promising signs show that real estate supply will increase in 2021. However, will those increases be enough to slow down the rise in home prices? First-time home buyers are priced out of the market. Also, many current home owners don’t want the higher payments that come with upgrading.

Sam Khater, Freddie Mac’s chief economist said:

“The forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season.

This isn’t hopeful for newbies or homeowners looking to upgrade.

New Home Construction

As the home construction market begins to pick up speed, the influx of new homes will gradually ease the housing shortage. However, this won’t be anytime soon!

New-home construction is expected to increase in 2021, biting into the deficit of available homes. The Mortgage Bankers Association (MBA) forecasts the supply of single-family housing to be around 1.134 million in 2021, 1.165 million in 2022, and 1.210 million in 2023!

“Builders are going to be really busy (in 2021). There’s a renewed interest in housing after (people have been) crammed into a small apartment or house during Covid lockdowns,” says Danushka​ Nanayakkara‑Skillington, associate vice president, forecasting and analysis, at the National Association of Home Builders (NAHB). “Now, more than ever, people want more space. New construction on single-family homes could exceed 1 million (in 2021).”

This much-needed increase in building is hopeful, but it’s not enough. Restrictions on home-building supplies, including heavy tariffs on lumber, need lifted to ease the cost of building homes.

Without a sea change from the government and the construction industry itself, inventory will remain below needed levels.

Robert Dietz, senior vice president and chief economist at the National Association of Homebuilders.

The increase in construction will not be substantial enough to make a significant impact on the housing crunch in 2021. Even with governmental regulation change, the needed help won’t be soon. It remains to be seen if we’re moving in the right direction.

Covid-19 Vaccine to the Rescue!

Covid19 vaccine to the rescue!
Covid-19 vaccine to the rescue!

The pool of available homes will increase as homeowners find confidence from the results of the new Covid vaccines. As Covid diminishes with widespread vaccination, more homes will appear on the market. Let’s hope and pray that the vaccines are effective and long-lasting.

These signs are hopeful, although they certainly won’t catch the market up to current demand in a year’s time. The hope is that housing supply will eventually meet demand in the next few years. This balance will steady the upward climb of home prices and will make homes more affordable for first-time buyers.

Interest Rates

Interest rates will stay low in 2021.
Interest Rates Are At Historic Lows!

What about interest rates? Fannie Mae predicts a 2.8% rate across the entire year while realtor.com predicts an average of 3.2% throughout the year and 3.4% by the end of the year. These rates will continue to push the refinance rush (nearly 2 million in just the third quarter of 2020). The rates will also ameliorate the effects of the high housing prices.

When all is said and done, home prices are expected to rise in 2021, but not at the rate that they did in 2020! Freddie Mac predicts that prices will rise 2.6%, a much lower stretch than 5.5% in 2020!

Appraising in 2021

businesswoman
Appraisers will stay busy in 2021!

It is an obvious prediction that appraisers will stay busy in 2021. It’s also pretty clear that appraising in 2021 will be secure.

While some appraisals have been adapted to the pandemic (hybrid and desktop appraisals), appraisers kept their routine methods (albeit with masks and hand sanitizer) and remained busier than ever.

The possibility of an increase in foreclosure appraisals looms for 2021. Along with the low interest rates, low inventory, and Covid vaccine, this adds security to the appraisal load.

With the Federal Housing Finance Agency looking to overhaul the appraisal processes, appraisers face another year where regulations might change. However, work will stay robust and schedules will stay full for appraisers. For most appraisers, it will be business, very busy business, as usual in 2021!

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Filed Under: Appraisal Business, appraiser information, General News, In The News, News

Appraising and Foreclosures in 2021

December 16, 2020 by Shauna Hatch Leave a Comment

2021 at the start
As 2021 starts off new, be prepared to shift your appraisal focus

As an appraiser, are you ready to shift your business focus in 2021? While 2020 drove refinances by the truckloads, 2021 is likely to shift to an increased number of foreclosure appraisals.

Unemployment

A closed sign on a business
Unemployment will likely worsen before it gets better

Unemployment will likely worsen before it gets better. As a result, businesses continue to react to the consequences of Covid-related shutdowns and travel restrictions. Due to Covid, employment for millions of Americans will continue to change.

Data Peterson, chief economist for the Real Estate Forecast Summit Conference Board stated, “We won’t see the labor market go back to the 3.4% unemployment we had before the pandemic. It’ll probably level out around 5%. In normal times, that would be good. But based on how far we got in lowering the unemployment rate, that’s still quite elevated.”

The effects of rising unemployment will continue to domino throughout the economy. Unless legislation is signed that will extend the protections afforded underneath the CARES Act, by March of 2021, borrowers who signed up at the beginning of the program in March 2020 will be facing foreclosure. The expiration of the CARES Act will set off a mass exodus from homes. This exodus will flood the market with homes for sale. It will also curtail the availability of rentals.

Evictions & Foreclosures

To make the situation worse, the expiration of the ban on evictions that the Centers for Disease Control and Prevention decreed through December 2020 will increase the migration of homeowners and renters. Unemployment benefits are also nearing their expiration date. Unless legislation extends unemployment benefits, the situation will be even worse.

According to a survey conducted by the U.S. Census Bureau and completed on November 9, 2020, approximately 5.8 million adults say that they are somewhat to very likely to face eviction or foreclosure within the next two months. There are 17.8 million adults that live in households that are behind on rent or mortgage payments. That means that one third of these adults are facing eviction or foreclosure in the immediate future.

Ready, get set, go! Appraising foreclosures will grow in 2021!
The percentage of adults living in households not current on rent or mortgage where eviction or foreclosure in the next two months is either very likely or somewhat likely.

Shift Your Focus

The year 2021 is impossible to predict. However, as you can see, the signs indicate that there will be an increased number of foreclosure appraisals. Appraisers might need to shift their business focus to more foreclosure appraisals in 2021.

It is likely that refinancing will continue through 2021. Many homeowners have yet to take advantage of historically low interest rates. Refinances have slowed down in the last couple months of 2020 though. Keep up on the current trends and be prepared to make the shift in your appraisal focus as the market reacts to the consequences of Covid-19!

Looking for ideas on how to gain new clients? Check out our post: How to Make More Money as an Appraiser: Obtain New Clients.

Filed Under: Appraisal Business, appraiser information, General News, In The News, News, Uncategorized

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