Solutions for an Industry in Crisis – What Every Chief Appraiser Should Know Today, residential appraisers are discovering that they have left the door wide open for outside competitors to enter their valuation market with advanced, less expensive, faster valuation services. How could this happen? What can appraisers do to compete? Download the Appraisal Myopia [...]
I love talking about the future. I think it is because I am vitally interested in our profession and the direction it is going. I gave a presentation a while back to a group of regulators, and one of the members of the Appraisal Subcommittee came up to me later and told me that people were calling me the Ghost of Appraisal Future. While it sounded cool at the time, I’ve wondered since then if my message is always one that people want to hear. I tend to call it like it is.
In my presentation “Implementing Interactive Analytics in Appraisal”, I spoke extensively on the need for appraisers to utilize interactive valuation products. “It’s not about faster forms of shorter forms” I noted, “It is about providing appraisals that are credible, transparent and consistent-redefining what the appraisal process should be.”
The appraisal profession is on a path. And its not just appraisers. I’m talking about the shared interests we all share as appraisers, lenders, collateral risk managers, GSE’s and regulators in making sure the appraisal profession makes the changes that must be made to ensure that we regain our role and are recognized as providing [...]
What are Alternative Valuation Products? In a nutshell, the term is used to describe any product that provides a valuation to a lender, but is not intended to meet the guidelines or format of Fannie and Freddie. In other words-anything besides a 1004.
Today, residential appraisers are discovering that they have left the door wide open for outside competitors to enter their valuation market with advanced, less expensive, faster valuation services.
How could this happen?
What can appraisers do to compete?
Download the Appraisal Myopia white paper and find out. Learn what every Chief Appraiser should know.
I love talking about the future. I think it is because I am vitally interested in our profession and the direction it is going. I gave a presentation a while back to a group of regulators, and one of the members of the Appraisal Subcommittee came up to me later and told me that people were calling me the Ghost of Appraisal Future. While it sounded cool at the time, I’ve wondered since then if my message is always one that people want to hear. I tend to call it like it is.
Let me share a great email I got this morning from a bright MAI:
Mark,
Your book “Visual Valuation” just arrived. Thank you for writing it. Its contents have opened my eyes and served as a paradigm shift.
I start plumber’s school next Monday.
I guess my message can influence people in unexpected ways.
One thing I am often asked about is the future and my opinion on the next “big thing”. What will the profession look like and how do you anticipate change. That is not an easy answer. You need to anticipate where innovation will come from as we head into the future, and specifically determine what forces impact our profession.
I recently attended two difference conferences and the view each painted about the future of the appraisal profession could not have been more diametrically opposed. Let me tell you what I learned at each one and then let’s talk a bit about which one we believe was right.
After a one-year hiatus, the Predictive Methods Conference (PMC2010.com) was held May 17-19 at the Ritz-Carlton in Laguna Niguel, California. The event has historically focused on collateral valuation and specifically has examined the role of analytics in providing critical information to clients in the financial services sector. I was glad to see PMC return-they always do a first class job and this year was no exception.
The appraisal profession is on a path. And its not just appraisers. I’m talking about the shared interests we all share as appraisers, lenders, collateral risk managers, GSE’s and regulators in making sure the appraisal profession makes the changes that must be made to ensure that we regain our role and are recognized as providing credible valuations to our clients and to the public whose trust is paramount to our continued existence as a profession.
I spoke to two conferences in the two weeks. I spoke about those challenges and opportunities. Here is what I identified:
I’m going to Arizona on Friday to talk about Alternative Valuation Products.
What are Alternative Valuation Products? In a nutshell, the term is used to describe any product that provides a valuation to a lender, but is not intended to meet the guidelines or format of Fannie and Freddie. In other words-anything besides a 1004.
Ah yes-the venerable 1004. One of the most difficult challenges facing residential appraisers is that they have been forced down the cattle chute of conformity in what type of report they provide to clients. Maybe I’m making this statistic up-but I think that 93.675% of all residential appraisers provide a 1004 appraisal to any client-regardless of the intended use and the intended user. Lenders, lawyers, consumers-it’s always a 1004.
Does that make sense? Is the 1004 the all-purpose appraisal report format?
I wrote about “No More Blank Checks” a few weeks ago – where I questioned the value I was receiving from the appraisal organizations that I belong to. I thought it would be a simple matter to figure out which organization was providing me with the most value. I would be able to simply and completely finish the question I asked in my blog about the value of professional associations a week later.
That was before I received dozens of posts in response to my blog.
That was before I received dozens of private emails.
That was before I received numerous calls from appraisers across the country.
I received responses that were 99% positive. By positive I mean that the responses were intended to provide me with meaningful dialogue about our profession; our professional organizations; the status of our great profession.
Hello all!
Firstly, I would like to thank everyone for your participation in my blog discussions. I have just started and it is a pleasure to see so many responses.
Please feel free to watch and leave comments on my weekly AppraisalWorld webinar. This week, I cover the topic of Regression analysis. Just reply to this post if you have any thoughts or suggestions.
This webinar looks at advanced techniques that you can use in your appraisal practice to more effectively analyze data. Regression analysis is the coming standard, and the more you know about it and what it can do to help you produce more supportable valuations – the better equipped you will be to survive in the competitive environment of the future!
Enjoy!
Mark
Professional appraisal organizations are not delivering what we need.
I have a lot of professional designations. MAI, SRA, CRE, CAE, ASA, FRICS. I ascribe that to being an overachiever. Maybe. Whatever the reason, it took a lot of work and money to get those designations. And it costs a lot of money each year to maintain those designations. Almost $8,000 every year.
Here’s my dilemma, at one time, I had a large appraisal company and the company paid those professional dues. No more. Today they are my personal responsibility. Nothing clarifies your perspective as much as having to pay for something out of your pocket.
So I started looking at the invoices that have been piling up over the last month, and I pulled out my checkbook.
(Was first published on Mar. 4th, 2010)
Let’s get introduced. In my last posting, I told you what this blog would be. Today I tell you who I am, why I think what I think, and what shaped my perspective.
Maybe I should have started telling you that. But I wanted to get the ground rules out first.
So who am I?
I started in the assessment side of our profession. I learned that lots of sales were good. That limited resources meant lots of analytic tools were necessary. We had limited staff-lots of properties to value. Tools like regression analysis were second nature to us. I obtained my assessment designation and then decided the $$ was better on the private side.
I went into the fee side and started accumulating a lot of designations. Call that a personality flaw. But the big thing that began to concern me was how little of what I learned about data analysis and advanced statistical techniques such as regression-were actually present on the private side of our partition. I wrote an article many years ago that talked about that. I used the phrase “the partitioning of the appraisal world-view”. I always liked the way that sounded. I also thought it was true. Assessment practitioners thought that fee appraisers were overpaid, pompous and too focused on the individual property-missing the bigger picture of the market. Private side appraisers thought that assessors could not see the trees for the forest.
(Was first published on Feb. 19th, 2010)
There is a lot of noise in the blogosphere.
Lots of people with opinions on just about everything. Are you overwhelmed by the opinions of others who seem to bombard your inbox on a daily basis? I know I am. Yet here I am announcing yet another blog. I find about 99.365% of all the information that goes into my inbox to be of absolutely no value. (I also know that 84.7% of all statistics are made up). Why is it that intelligent people opining about our industry end up taking up so much of our temporal existence, and give us so little in return?
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