Posted on August 13, 2025
North Texas RMA Luncheon Recap: Chief Appraisers Forum
Last Thursday, our team attended an insightful luncheon hosted by the North Texas Risk Management Association on August 7, 2025, at First United Bank Plano–Parkwood. The forum featured a powerhouse panel of appraisers: Jeff Garvin, MAI (Bank OZK), K. Lynn Ray, MAI, CCIM (Veritex Bank), and Gary D. Ray, MAI (First Horizon Bank)—together, bringing over a century of combined banking and valuation experience.
Market Watch: Trends, Challenges, and Opportunities
As we listened and took note, the discussion unfolded organically. First, the panel raised a question: are current cap rates actually reflective of today’s market? From there, they dove into the shifting landscape of banking, predicting a likely wave of consolidation that’s positioning firms to deliberate more strategically about valuation risk.
A notable comparison emerged between the multifamily markets of Dallas and Austin. Dallas has demonstrated resilience, maintaining a robust market, while Austin’s multifamily sector has become more affordable due to frenzied growth and construction. Interestingly, the entire Dallas–Fort Worth metroplex now boasts more apartment units than the combined total of North and South Carolina, both of which are currently experiencing strong apartment demand and construction.
Regarding affordability, the gap between multifamily and single-family housing is significant. While this disparity isn’t yet a systemic issue in the DFW area, it is becoming a major concern in other regions.
The retail sector earned high marks as the most resilient sector, as its pre-COVID slowdown in development helped avoid the oversupply many feared.
Land development often serves as an early indicator of market shifts. When demand wanes, land can become stagnant, tying up capital and hindering growth. However, in the Dallas–Fort Worth area, land development remains active and responsive to market needs. Developers are strategically focusing on high-growth suburban regions like Frisco, McKinney, and North Fort Worth, where population expansion and rental demand continue to drive development. “Build it and they will come”? That mantra is… questionable right now, making this targeted approach essential. By aligning projects with areas of sustained demand, developers ensure land is utilized effectively and contribute to the region’s ongoing growth.
Another trend catching attention: suburban walkability. Communities that offer more pedestrian-friendly designs are gaining traction. Why? People want convenience and lifestyle, not just square footage. Walkable developments are proving more attractive, and that’s shaping how new projects are planned and valued.
Inside Business: The People, The Process, The Pressures
As market complexity grows, so does the debate over appraisal fees. Should they rise to reflect more complicated analysis? In theory, yes—but in practice, it was discussed that keeping fees competitive while paying staff fairly can be a tough balancing act. Technology can help. At LPA, we leverage tech to streamline processes, keeping costs down without sacrificing quality.
A significant concern raised was the aging demographic of MAI appraisers, with the average age being 63. This suggests a potential shortage as seasoned professionals retire, potentially impacting the quality and availability of appraisals. Compounding this is the observation that many younger bankers, having experienced predominantly appreciating markets, may lack experience in downturns, underscoring the cyclical nature of real estate markets. Panelists noted that we might be entering a depreciation cycle, leading to a market where both buyers and sellers adopt a wait-and-see stance, with sellers hesitant to sell unless they absolutely must.
Quality control is another hot topic. Banks spend more time reviewing appraisals than ever before, with some devoting $200-$500 in staff time per commercial report to ensure accuracy. Not all banks have third-party reviewers; some rely on internal staff, but when pressure exists, third parties can be brought in to provide an additional layer of oversight. At LPA, we maintain strict quality control by having experienced reviewers double-check work, ensuring consistency and reliability before any report reaches a client or lender.
Finally, an appraisal’s validity based on the length of it’s existence was discussed: it was noted that appraisals can typically remain useful under six months but are “good until they’re not.” Banks are increasingly cautious with older reports—anything over six months may trigger a review, past 12 months likely calls for a new appraisal, and reports beyond two and a half years simply don’t hold weight.
What This Means for Us
This discussion reaffirmed how important it is for us to stay alert to market shifts and valuation complexities. By emphasizing tech-enabled efficiency, understanding demographic trends, and embracing appraisal best practices, we can better support our clients, especially across multifamily and development sectors sensitive to cycles and affordability pressures.
