It’s no secret that the appraisal industry is experiencing an appraiser shortage. Appraisers are aging and retiring, and with fewer young guns entering the profession the impact is far and wide. Since the height of the housing boom in 2007, the number of certified appraisers has declined by 28%. 23,000 fewer appraisers results in overworked appraisers and lower turn times. Some residential real estate markets are feeling the shockwaves harder than others. Despite having one of the hottest housing markets, the Pacific Northwest in particular is facing an appraiser drought unlike no other which is causing extreme residential appraisal delays.
What are the average residential real estate appraisal turn times?
National Mortgage News reports the average appraisal turn time to be three weeks, with some moving even quicker. However Seattle appraisers are facing turn-times nearly double that of their peers. In fact, some lenders indicated that the range of appraisal turnaround times was between four and six weeks in the metropolitan areas while rural areas are experiencing wait times closer to eight weeks. The culprit? Supply and demand. According to leading real estate marketplace, Zillow, there were 34,566 homes sold in the Seattle region, up 37% from the same period a year earlier. In a nutshell, appraisals in the area are badly backlogged, and with peak buying season on the horizon, there’s a chance it could only get worse.
How do our residential real estate turn times stack up against the competition?
While our latest benchmark report identifies that turn times have increased across the board this year, the story of the Pacific Northwest shows drastic fluctuations. Much of the region is experiencing turn-times that are nearly double the rest of the country, while MountainSeed’s data indicates only a 2-day increase in turn times in this same region. In fact, MountainSeed’s highest average turn time in any region averages at 22 days which means with MountainSeed’s AMC services, you’re getting your appraisals almost a week earlier than your competition.
How is this the case? Through our bid-vetting process and complete access to the top appraisers in even the toughest regions, we’re able to provide you with the most qualified appraisals and reviews for your specific job. This allows you to deliver fast, quality appraisals to your clients on time again and again.
How are appraisal costs affected by slower turn times?
Surprising in the least, appraisal costs in the Pacific Northwest have increased by as much as 25% over the past year, and our benchmark report indicates this remains consistent in some capacity across the board. While appraiser fees in other areas of the country aren’t quite as high as 25%, we found that fees did increase by an average of 3% with a national average fee of $1k per $681k in appraised value. The good news is that despite a bustling housing market, appraiser fees in 2016 slowed almost 3% from the 2015.
Even if your bank isn’t facing turn times and fees as bleak as those in the Pacific Northwest, evaluating your own appraisal turnarounds can be a key indicator of success. Comparing your turn times to those of your peers will make for better processes and goals. Keep an eye on your turn times and track them each quarter. We’ll be there providing benchmarks every step of the way.