The Return to Normal

What will the appraisal world look like after COVID-19?

by Mark Fisher

June 2021

Over a year ago, we posted a blog entry called “How Appraisers Are Adapting During COVID-19”. Now, we are beginning to see a “light at the end of the tunnel” as the virus starts to diminish. We thought it might be interesting to see what factors might change back again and what factors might stay the same. Here are some of the adaptations mentioned in the first blog, with a follow-up on what they look like today.

Data Limitations:

 Realtors

Realtors were not able to do their job completely during the pandemic. They were unable to do open house showings or private showings of property. This has all pretty much returned to normal. Public land and property auctions have also resumed, so those kinds of transactions will form a larger part of our appraisal work once again.

Courthouse Access

 Many courthouses, which we relied on to obtain important information, were closed or had limited access for much of the pandemic. We had to obtain our information over the phone (if the courthouse was still being staffed) or from the county’s online files (if they had them). Now, all courthouses are open, and we can access the information in person, if desired. Much of our information is still acquired over the phone, just because it is easier in most cases. It is nice, however, to be able to go in person if needed, especially when obtaining deeds, as many recorders charge a fee to email copies.

Change in Business Practices:

Handshakes

People are starting to return to handshaking again, which has always been a strong tradition in this country, as a greeting or to close a business deal. As more people become vaccinated, the more they feel comfortable returning to such practices. Social distancing still may be practiced to a degree for a while, however.

Inspections

Many people were not comfortable having an appraiser doing an inspection on their home during the pandemic. As a result, many opted out of an inspection completely, or required the appraiser to wear a mask, or even took their own photos and sent them to the appraiser. Not inspecting saved the appraiser some time but made it difficult to be as precise as they would like. But now, there are very few people who refuse in-person inspections.

Banks

Banks also loosened their requirements for in-person inspections, allowing exterior-only inspections. However, many lenders have now returned to prior guidelines. During the pandemic, banks also did more business online and over the phone, as many banks closed, and staff worked from home. This trend may never completely return to pre-pandemic conditions. Banks, like many other businesses, have seen the financial benefits of employees working at home, and current technology makes it relatively easy and cost-efficient.

Another result of the pandemic was that the Federal Reserve lowered interest rates to near record levels, causing a major influx in appraisal requests for us from lending institutions. This has proven to be another persistent result of the pandemic. The Federal Reserve has not raised interest rates and will not do so for another two years, based on a recent announcement. Therefore, we continue to receive record-high numbers of appraisal requests from lending institutions., and this will likely continue for years.

Conclusion

In conclusion, it has been a long hard road for the appraisal industry, as with most industries. Although there were some things that were a little easier, overall, it was a difficult season that required many adaptations in order to stay afloat. As things return to normal, we will be even more able to provide timely, honest, and accurate appraisals with a little less difficulty than before.