How many people could put a price on your property in South Dakota?

KELOLAND.com Original
KELO money 100 dollar bills

SIOUX FALLS, S.D. (KELO) — South Dakota has 60 active supervisory appraisers and only 15 appear to be available to supervisor appraisals in training, according to the South Dakota Department of Labor and Regulation’s website.

The number of supervisory appraisals and the general number of appraisals has been a concern in South Dakota and in the U.S. since at least 2015.

Sherry Bren, the former director of South Dakota’s appraisal program, was part of a 2015 panel at the Appraisal Qualification Board (AQB) public hearing on Oct. 16, 2015, in Washington, D.C.  in which she highlighted a shortage of appraisers in the rural areas. Bren was the chairwoman of the Association Appraiser Regulatory Officials’ Appraiser Qualifications Advisory Council at the time.

Bren said in 2015 that 65% of the state’s appraisers were 51 and older.

South Dakota has several categories of appraisals. The work they can do is based on the category and its requirements that must be met. Appraisers in training, or at the entry-level, need to work under a supervisor.

If a state does not have enough supervisory appraisers willing to train appraisers who want to move up the certification ladder it can take longer to appraiser property, as well as take banks longer to approve loans and lenders to close on property sales.

The S.D. DLR website lists 476 appraisers in the state, not all are from South Dakota. About 225 are from South Dakota, according to the DLR.

The state has reciprocal licensing with several states. Appraisers on the list for South Dakota including those with business or home state addresses in Iowa, Minnesota, North Dakota, Georgia and several others.

The appraisal industry, the real estate industry and the banking industry all published reports about the need for more appraisers or those who train other appraisers from at least 2015 until present time.

In South Dakota, a Sept. 27, 2017, letter from Curt Everson, the president of the South Dakota Bankers Association to the FDIC pointed out the number of appraisers and the role appraisers have with the banking industry, “According to data provided by the South Dakota Appraiser Certification program, no licensed or certified appraiser currently resides in 35 of South Dakota’s 66 counties,” Everson wrote in his letter.

Everson said in his letter that the state had only 56 supervisory appraisers.

Everson also advocated for the FDCI to increase dollar thresholds on property that would require an appraisal versus an evaluation.

Not only have the thresholds “not been updated for decades”, but the existing and future availability of appraisals are also reasons for increasing the dollar thresholds, Everson wrote.

A 2017 survey of appraisers by the National Realtors Association said that of those who responded the average appraiser had worked in the field an average of 21.7 years. Of those very likely or somewhat likely to stay in the field would do so for another five years.

The DLR website’s appraiser roster lists the number of appraisers in each category and the lists show some big differences between less populated areas of the state to more populated.

The certified general appraiser for Ipswich, the county seat for Edmunds County, is in Jamestown, North Dakota. There are no other categories of appraisers listed for Ipswich.

Edmunds County has at least one certified general appraiser who is in Lemmon. A registered appraiser is also in Lemmon.

Brookings has three state-registered appraisers and three certified general appraisers and two state-licensed appraisers. There is one certified residential appraiser in nearby Volga.

The city with the largest population in the state, Sioux Falls, has 17 certified general appraisers. It has 19 certified residential appraisers, six state-licensed appraisers, and 15 state registered appraisers.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Continuing The Conversation
See Full Weather Forecast

Trending Stories

Don't Miss!

More Don't Miss