The Appraisal Institute (AI) welcomed a new president for 2019 as Stephen S. Wagner assumed the duties Jan. 1. Wagner addressed many topics pertinent to appraisers in a recent conversation with Valuation Review.
For a seemingly long time, the misguided notion that appraisers are very limited, or the belief that they can do only one thing, has lingered about the profession for far too long.
“It’s unfortunate that too many in the real estate industry perceive appraisers as providing only point-in-time appraisals,” Wagner told us. “The reality is that qualified, competent appraisers can provide a litany of valuation and consulting services to a broad array of clients and users of appraisal services.
“The list – from taxation issues to litigation support to conservation easements and on and on – is virtually endless,” he added. “Some Appraisal Institute professionals focus on a particular property type – from convenience stores to storage facilities to nursing homes to marinas to golf courses – and provide valuable services to their clients beyond point-in-time appraisals. With the right training and experience, appraisers have many choices within the valuation profession – and the clients who hire them benefit from that knowledge and skill.”
Appraisers’ willingness to adapt to technology remains a point of discussion. AI recognizes the importance for appraisers to stay ahead of the curve technologically to grow their businesses.
AI also recognizes the need for advancements in technology to better assist the appraiser in order to meet the needs of clients.
“Technology continues to grow as a vital part of the valuation profession. While some appraisers have been more willing to adapt to that trend than others, there are many high-tech tools available to appraisers,” Wagner said. “An ongoing trend is the use of data in helping appraisers to complete complex valuation assignments. Understanding, and taking advantage of that trend, is one way appraisers can help their businesses this year.”
Wagner also shared his thoughts on challenges he sees today.
“One of the primary challenges facing appraisers is the trend of raising appraisal thresholds. Federal agencies – such as bank and credit union regulators – sought last year to increase thresholds, thereby reducing the number of appraisals required,” he said. “A similar challenge is that of appraisal exemptions sought by some regulators and banks. Yet another challenge is a stack of growing, outdated rules and regulations that stifle appraisers.
“Additionally, for many residential appraisers, the ongoing challenges of low fees, additional work (sometimes known as scope creep) and the business practices of some appraisal management companies continue to present obstacles,” Wagner added.
Among the Appraisal Institute’s goals for 2019, the president said, are helping appraisers expand their business opportunities, seeking to modernize the appraisal regulatory structure, focusing on assisting residential appraisers, and expanding the organization’s body of knowledge.
“The Appraisal Institute is pleased to offer education, publications and guide notes that help appraisers expand their business opportunities in a variety of exciting areas,” Wagner said. “We will continue to work with staff and members of Congress on developing regulatory modernization legislation for the betterment of the valuation profession, users of appraisal services and consumers.
“The Appraisal Institute continues to make residential appraisers a high priority, including state and federal advocacy, education, books, news publications and the work of the Residential Appraiser Project Team,” he added. “In 2019, we plan to expand our body of knowledge through new books and educational offerings on topics such as the valuation of residential properties, corridors, leaseholds and rural properties.”
Appraisal organizations work diligently to properly prepare the appraiser for a career in valuation. But are there things the appraiser is not prepared for once he or she enters the profession? What might take them by surprise?
“If one were to ask a dozen supervisors about their appraiser trainees, one might well get a dozen different answers,” he said. “That’s why the Appraisal Institute offers such a robust collection of education and training for appraisers entering the profession.
“We’re deeply committed to enhancing appraisal quality and the valuation profession’s reputation overall, and we want to ensure that appraisers at any stage of their careers have the resources they need to increase their competence,” Wagner added.
Click here to read Part I of this story