While home builders, home buyers, and home sellers have all evolved with the times, the appraisal process hasn't had a meaningful update in 27 years.
That's the revelation to come out of a Housing and Insurance subcommittee last week on "Modernizing Appraisals: A Regulatory Review and the Future of the Industry." In this piece, Appraiser's Blogs recorded block quotes from testimonies during the hearing.
"Ultimately, our nation’s appraisal system is unnecessarily complicated and outdated. That complexity impacts homeowners and is, in part, responsible for delayed closings and increased consumer costs," said Subcommittee Chairman Blaine Luetkemeyer (R-MO).
NAHB Chairman Ed Brady also testified during the hearing, stating the current appraisal system is "inconsistent and conflicting standards and guidance, inadequate and uneven oversight and enforcement, a shortage of qualified and experienced appraisers and the absence of a robust and standardized data system."
A large concern is the declining number of appraisers, as well. While the system needs an extensive update, many are concerned there won't be enough employees to keep up with demand even if the system is updated. That will lead to the appraisal process becoming more inefficient and costly.