With nearly 300 appraisers gathering for the 2021 Appraisal Institute (AI) Annual Conference “Rising to the Challenge” at the JW Marriott Orlando Grande Lakes Hotel, it was very clear everyone was glad to return to a more normal atmosphere allowing the customary person-to-person business exchanges, as opposed to the all too familiar virtual conversations taking place in 2020.

As has been “normal” and tradition, we sat down with the AI President, Rodman Schley, who addressed many topics uppermost on the minds of appraisers and those they work with. At the forefront was an item on seemingly everyone’s list-bias.

“Bias is the prevalent and big issue that is out there right now,” Schley told us. “It is certainly something we as an organization take very seriously. We must make sure that we put ourselves in the mindset that promotes seeking solutions to this problem. Not everything is right or wrong in terms of the data being looked at surrounding this matter, but we must make sure that we understand what is happening, and again, put ourselves in a position to be part of that solution.”

“This (bias) is so important to our organization in that we have some of the smartest appraisers in the country sitting in these conference rooms, who are highly professional, and if there are issues, they want to be part of the solution,” Schley added.

Regarding bias, the AI president said he sees reports all the time where differences were discovered within those reports, but those reports are difficult to get a hold of making it challenging to speak to and address discrepancies. Schley also noted with the long history of the systemic issue of racial bias, it was important to assemble a project team with AI to look at those studies and reports to see what is valid, and for areas where data was lacking, what could be done to provide greater clarity.

Having a “critical eye” to see problems is necessary, he said.

“One of the potential solutions to bias is to create more diversity within our organization,” Schley said. “Diversity is also at the forefront regarding problems now, and at AI, we have incredible programs that have always promoted diversity. Unfortunately, a lot of our scholarships have gone unused. Are we promoting those correctly? I don’t know, but this does provide me with the opportunity to go out and speak to people about these available scholarships.”

“I can go out and tell people that we want them to be a part of our organization,” Schley went on to say. “Sometimes problems present tremendous opportunities.”

As to whether or not AI and other organizations are doing enough regarding education and training to deal with bias, Schley pointed out that AI is in the process of developing a five-hour course addressing bias for a better understanding of the different forms of bias, how they exist and function, and what appraisers need to look out for.

Schley said the term unconscious bias is just what it implies in that there may be biases appraisers aren’t even aware they have. It is important, the AI president suggested, that a clear understanding is obtained to avoid pitfalls.

The tremendous effect COVID-19 had on the industry also was a point of discussion with Schley, who said many times adaptability was so evident by all through what was a very long pandemic period.

“I would have never thought in my lifetime that we would have experienced what we did in relationship to the pandemic,” he said. “Nobody could have predicted it. It came on so fast and we had to make sure we had incredible adaptability. You have to be able to turn on a dime in certain situations like this, otherwise you don’t survive.”

“The appraiser community and the organization really stepped up,” Schley added. “Bill Garber, out of Washington, came right out of the gates and his group was on top of things so quickly. Appraisers were given guidance as to what was expected or mandated at the state and city levels. At first, we didn’t even know if appraisers were going to be categorized as essential workers. We had good sources to rely on in Washington to come out and help appraisers sort through the ups and downs. Every state was looked into as far as restrictions and the stay-at-home orders. We felt it important to not only have the resources available for our organization’s membership, but for the appraisal profession, in general. The overall adaptability was significant in terms of appraisers adjusting in order to do their jobs.”

Schley also noted the times when appraisers were not able to personally inspect a home, going to an app where owners were taking interior photos and appraisers taking exterior phots, as well as working with lending institutions during those restricted guidelines was challenging.

With interest rates being at an all-time low, appraisers, still dealing with COVID-19, also were very busy. Schley reminded us it is easy to make adjustments when things are moving slow, but when you’re moving quickly from a business standpoint, keeping that business moving forward and thriving is impressive.

The AI president also said that from a technology platform, the industry is lucky to be where it is now.

“It’s interesting but when we always talk technology, we always seem to come to technology is not going to replace anyone-it will enhance what appraisers do and allow them to do it better. To constantly be evolving professionally, the technology has to keep moving forward. Over the past 20 years, we’ve seen how much technology has evolved. We’re now watching the profession grow with enhanced technology. The last five years, or so, with this technology, we’ve been able to work from wherever.”

“Thank goodness this technology was available when the pandemic hit,” Schley added. “Had this crisis come 10 or 15 years ago, I’m not sure we could be doing what were able to do today. Technology, simply put, is a true ‘career enhancer with few limitations.’ Even when you think about AVMs, the model may be there, but somebody is still programming the model. The idea that artificial intelligence will come in and replace people behind the scenes, those ‘boots on the ground’ appraisers, the human element with the knowledge to use the technology properly and read the data, accordingly, will not happen. If it does, quite frankly, we’re all in trouble.”