I make this statement often enough it must be true… "U.S. residential real estate is the largest asset class in the world yet we know little about it." Think about that for a minute. Not only is it ginormous in the global financial sense, yet it is the single largest asset of most U.S. households. Then consider all of the derivative mortgage products and investment vehicles. Has your head exploded yet?
Appraisers are really good at finding comps, measuring and drawing houses, evaluating a property's highest and best use, analyzing the market, extracting and applying adjustments, driving to comps, and communicating final results. We have a big skill set! But what are we not always good at? Actively managing our businesses.
Every day, as an appraiser, you wear several different hats depending on what aspect of your business you are working on at any given time. Your functions range from the lowest level employee to the CEO. It is a given that as an appraiser you have a lot to do.
Last month we put out a survey on improving the appraisal report based on the work and analysis completed thus far by the CRN Appraisal Reporting Summit and we are happy to report a great turnout. We would like to share these most recent results with Buzz readers. The survey was written to support the three main goals of the CRN Reporting Summit effort. The first of which is to identify the changes that might be made to assist appraisers in developing a more credible appraisal report.
It started on Tuesday evening and it was not normal. It felt like indigestion... but not really. As you grow, you become accustomed to your body and how it feels. When something feels different, you take notice. The pain I was feeling Tuesday was putting me on notice.
Over the past few months I have been studying to take a German appraisal exam – thankfully, given in English. For those American appraisers who complain about the cost of annual dues for various organizations or continuing ed seminars or license renewal fees, note that it cost $6,000+ for me to just take the 4-hour exam last Friday. The requisite classes each cost more than that. It’s cheap, and easy, to become an appraiser in the USA.
The 2nd International Conference on Collateral Risk has come and gone and planning has already begun for next year’s conference. With an on-site attendance of 160 (including 33 panelists) plus 90 watching on-line, the conference was a great success.
Recently the American Enterprise Institute hosted the International Conference on Collateral Risk: Moderating Housing Cycles and Their Systemic Impact. The conference took place last week in Washington, D.C. It was held at the AEI main office and co-sponsored by the Collateral Risk Network and the Robinson College of Business at Georgia State University. Through the two day conference there were six panels discussing a wide variety of topics.
Recently we have been talking a lot about what to do with the lack of appraisers entering the profession. We were lucky enough to have the 2013 Valuation Visionary Award Winner, Greg Stephens from Metro-West Appraisal Co., LLC, write a two-part article on training the next generation. Our subscribers flooded us with responses via email and in the comment areas. We wanted to share some of the best to continue to open up this industry discussion. We left all the quotes "as is" but removed any identifying information.
We want to begin by thanking those who responded to our appraisal forms beautification contest. We had some really great submissions and we appreciate you all taking the time to give us your input. They were thoughtful and insightful.