The Best of Times and the Worst of Times

by Stan Choate, Office Manager

February 2017

When I was first considering a position here at Spurgeon Appraisals, I asked about job security. My soon-to-be employer told me, “When things are good, people need appraisals; when things are bad, people need appraisals even more.” While I have seen that principle at work throughout my nine years with the company, nothing could have prepared me for COVID-19 and its effect on the appraisal industry.

If you have tried to order an appraisal since March 2020, you know to expect a long waiting period—or perhaps higher fees if you insist on a rush order. While that is both evident and frustrating to everyone involved, appraiser and customer alike, you may not realize exactly how overwhelmed the appraisal industry has been since March of 2020, when concerns about COVID-19 became the prevailing attitude of every nation on the planet. Since my job at Spurgeon Appraisals is to develop quotes and deal with our customers throughout the appraisal process, I have been at the forefront of the upswing since business began to surge nearly eighteen months ago—and I can tell you exactly how busy we’ve been.

The Cause

For the most part, historically low interest rates have driven the recent rush for appraisals. For most people, that has simply created a perfect opportunity to refinance—and many have. Not only that, but such customers want to refinance immediately, before interest rates can climb again, creating a brand-new sense of urgency for refi work. In the past, appraisals for refinancing were considered easy-going projects, since they had no firm deadline, unlike purchases. Speaking of which, many other customers have taken advantage of low interest rates for that very purpose. Such customers have always wanted their appraisals done posthaste, but now they want them done at the speed of light.

The Effect

Regrettably, few appraisal firms have the supply of time and workers to meet the demand for refinancing and purchase loans. Here at Spurgeon Appraisals, we have certainly tried, but the task has proven to be herculean. My own job has radically changed. I often think about a busy day I had many years ago, when I spent six hours straight doing nothing but reading and responding to emails from potential clients. At the time, I thought that was a crazy day. But since March 2020, nearly every day has been like that.   

The Numbers

For those of you who think better in numbers, I can tell you a helpful comparison. If I compare our business from March 2020 – July 2021 with the same amount of time before COVID-19, the numbers are staggering. We have seen a 61% average increase the number of appraisal requests we get. To our great consternation, we have also seen an 83% average increase in the number of times we are not awarded a project we bid—mostly because customers give up on getting an appraisal from anyone, when they learn how long the waiting list is. And yet, we have still been working much harder: our appraisers have completed 45% more appraisals on average since COVID-19 concerns took hold of the world.

Not long ago, I asked the owner of our company if he had ever seen anything like this. He said that he has not seen a surge in appraisal requests like this since the housing bubble burst in 2008. Taken together, these two very different events prove how necessary it is to have appraisals in bad times. We at Spurgeon Appraisals will continue to service your appraisal needs, no matter how long it takes us to get the job done. Be sure to email us today or use our online quote request form to order your appraisal today.