An issue that many of our members have brought to our attention—especially in rural areas—is a shortage of appraisers. A shortage that at best increases costs and delays transactions, or at worst makes deals fall apart. States across the country, including Wisconsin, are working to loosen the requirements to get licensed.
How bad is it, you ask? Bankers in Door County were at a point two years ago where Washington Island residents needing to meet appraisal regulations were paying $650 and waiting for two months for an appraisal to even start. At the time there were only two licensed appraisers operating in Door County and both were nearing the end of their careers.
The Appraiser Qualifications Board (AQB) of The Appraisal Foundation establishes the minimum qualifications for real property appraisers in the United States. The Appraisal Foundation is authorized by Congress as the source of appraisal standards and qualifications. Historically, nearly all states—including Wisconsin—have followed the AQB's recommendations in promulgating their own state regulations. The national appraisal rules were written in such a way that new appraisers need 2,000 hours of apprenticeship.
Below are the AQB's recommendations for revising the current licensing requirements:
- Revisions to the college-level education requirements for Licensed Residential and Certified Residential.
- No longer require a Bachelor's degree for Licensed Residential
- Certified Residential requires one of the following:
- Bachelor's Degree in ANY field
- Associate's Degree in Business Administration, Accounting, Finance, Economics, or Real Estate
- Completion of 30 hours of (1) relevant coursework, or (2) College Level Examination Program (CLEP) exams (3) or some mix of both
- Alternative to Bachelor's Degree requirement for Licensed Residential to become Certified Residential
- Must have five years of experience
- No disciplinary action within the past five years
- Completion of specific additional education
- Reduction of Experience Hours
- Licensed Residential: 1,000 hours in six months
- Certified Residential: 1,500 hours in 12 months
- Certified General: 3,000 in 18 months
The Wisconsin Real Estate Appraisers Board has proposed amending Wisconsin rules to incorporate these national changes. SPS 85-87 is working its way through the rulemaking process. More information can be found here.