Appraisers continue to search for opportunities that can help their businesses open the door of opportunity and shine in 2025. Woody Fincham, president and founder of Fincham & Associates, and a veteran of the valuation profession for many years, shared his insights into what opportunities appraisers should take advantage of.

We began the conversation by asking Fincham what specific aspects of the appraisal profession were positive during 2024.

“Our firm continued to see growth in non-lending work,” he told us. “Our lending work stayed steady. It was not the most profitable year, but it was not a bad year by any means. At the 20,000-foot level, the profession is struggling, especially for the appraisers doing only lender work. 

“Private work, though, will help immensely for appraisers that have the skills to do it,” Fincham added. “I always tell others to go take some challenging CE to sharpen their skillset. The Appraisal Institute has some great classes on litigation and on green buildings. These classes can help attract some clients who need help with these areas.”  

He pointed out areas where implementation is starting to work in the appraiser’s favor.

“The PAREA program seems to be doing well and helping move the profession in the right direction,” Fincham said. “It teaches fundamentals that many already practicing appraisers do not have, with a strong emphasis on analysis. We certainly need more incoming professionals, as the aging out of current appraisers is a real thing. I have heard from more than a few appraisers that they plan on walking away when the new GSE formats are required. Many see it as something they do not want to tackle. That will open up some lending work opportunities for those staying in the business.

“Bifurcated appraisals are a thing that we all need to come to terms with. They are here, and I doubt they are going anywhere,” he added. “My firm has done a few, but we have avoided them due to the obvious intent to get work done for the least amount of money possible. Most AMCs and lenders forget that the bulk of our work is in the development and writing of the reports. The analysis is where the value of what we do really is. They need to be willing to pay commensurate to the work and time that is required. AI and software to assist in the development and reporting of appraisals are key. We have been using various AI applications for a while. They are great tools but have to be used responsibly. They certainly can help appraisers along.”  

Moving to technology, Fincham shared if appraisers are not using and learning new software and applications, they are getting left behind.

“The non-linear adjustment issue that FNMA recently referenced as a concern just goes to show many appraisers are not staying current,” Fincham said. “There are no new requirements there, but many appraisers on social media are alarmed because they do not do a thorough market analysis and often fail to support or even do time (market conditions) adjustments. Learning basic applications like Excel is key. There are several products out there that are designed for appraisers. They should learn them and use them.”

As to what arrival of the Uniform Appraisal Dataset (UAD)will mean for the appraisal profession, Fincham told us it will result in more accountability and a need to support report conclusions; the days of phoning it in are coming to an abrupt end.

With a new administration in Washington, D.C., making quite a few changes immediately after the inaguration, we asked Fincham what the appraisal industry could be forced to look at, or be concerned about, as well as any future House and Senate rulings headed in the direction of the appraiser.

“That is a good question,” Fincham responded. “I think DEI and appraiser bias topics are likely not going to be front and center. The Consumer Financial Protection Bureau (CFPB) is essentially shuttered, but since Congress created that department, I am not sure how that will work itself out. The administration seems intent on making it effectively dormant.”

Fincham further suggested there is a grassroots push to get states to require AMC fee transparency, which is separated from the appraisal fee. There will likely be several stages that are adopted, although REVAA is fighting it for some reason, he stated, while he isn’t sure why they care if their fees are transparent for the sake of the consumer.

But when all of the smoke clears as far as changes and new policies coming out of the White House, in addition to changes and updates from Freddie Mac and Fannie Mae, Fincham offered the following as why 2025 will be a good time to be an appraiser.

“I love what I do, so I always see more opportunities in almost any environment,” he said. “We will continue to evolve towards doing mainly non-lender work. We will always do VA work, local bank work, and wealth management-related work. We have spent years and lots of money working to be the firm in our region that solves problems rather than waiting around for mortgage work.”