It is also driving appraisers out of the business, as the bulk of the appraisal fee goes to the banks, who rake off a piece of the fee, then the appraisal management company (owned by the banks) rake off another 50-60% of the fee. Appraisers who used to charge the lender $300-350 for an appraisal now are paid $175-200 with the borrower charged $450-650 for the appraisal fee.
So the appraiser is now working on an income of $25-30K after expenses. So experienced appraisers are retiring. And the requirements to become an appraiser are draconian, so no new appraisers are coming into the business. Especially when they see what it takes and the probable income.
Good points.
Another detrimental hit for appraisal services in my area is that appraisers are no longer local. The banks send in appraisers from 100 miles away, which drive up their expenses, and who know little to nothing of local market conditions and laws/regulations.