There’s a reason why sayings like “there’s no such thing as the right time” exist, and that’s because they’re true. While there really isn’t a good time to terminate a relationship with a property appraiser. It is even more difficult to report them to the appropriate state agency. We get it; it’s tough, especially when the pool of quality property appraisers seems to be dwindling. Experts say there are fewer numbers of appraisers entering the workforce (down by nearly 2,000 appraisers in 2015-2016) which means terminating a relationship can hurt in more ways than one. However, keeping someone on your staff or on your approved appraiser list can be equally as harmful, if not more so. Part of our job as an AMC, and a top appraisal management company at that, is to make sure you’re equipped with everything you need to make the best decisions for your business. Today, we’re breaking down the ways you can terminate the relationship with your appraiser the right way.
How to become a property appraiser.
We thought it might be beneficial to begin with how an appraiser becomes an appraiser. Afterall, you can’t know where you’re going unless you know where you’ve been. The Appraisal Foundation outlines exactly how to become an appraiser in easy to understand terms. According to them, a property appraiser must also have a certain amount of education, training, and experience. They must also have good communication and analytical skills. Additionally, if an appraiser wishes to be certified, they must also pass an extensive examination. We explain each of these steps in order to remind you that terminating the relationship with an appraiser is not meant to be taken lightly. These men and women are experienced and educated in their field, and because of that, it’s important that when we consider reporting or removing them from a panel, we do not make a snap decision.
How a relationship can turn sour.
While becoming an appraiser is a big deal, equally as important is an appraiser’s work ethic and appraisal quality. Poor appraisers are lacking some of the skills we outlined above. Perhaps they need to work on their communication skills. Perhaps they over commit and fail to meet the required deadlines. Maybe their turn-times don’t match the market average for residential and commercial appraisals. These are just a few of the things that can damage an otherwise good relationship. If you’re experiencing these behaviors from anyone on your appraiser panel, it might be time to explore ways in which you can take action.
How (and when) it’s time to remove a property appraiser.
While we cannot tell you how you should act, we can explain our own process. We follow a very specific documented removal process because it is thorough and meets regulatory guidelines. While there are many reasons an appraiser can be removed from a panel, there are also reasons that an appraiser cannot be removed from a panel. Rules and regulations about why a property appraiser can be removed vary from state to state, but the primary reason is for a USPAP violation. Once you’ve identified a USPAP violation by an appraiser, document the violation and then follow your bank’s policy on removal from the panel. One important item to note: if you’re citing USPAP, make sure you cite only a standard, and not an FAQ or one of your own bank’s custom rules.
If you think you might need to report an appraiser and need some advice, don’t hesitate to let us know. We’re happy to answer any questions you might have.