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Atlanta Area Chapter Appraisal Institute
Winter 2017 Newsletter
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President's Message
Andy Sheppard, MAI, President
Atlanta Area Chapter Appraisal Institute
I am excited to serve as President of one of the largest and best Appraisal Institute chapters in the nation. Many thanks are due to those who introduced me to the organization, dragged me through the designation process, and continue to support my efforts as I try to represent our large pool of talented designated members, candidates for designation, and practicing affiliates. Anyone who knows me understands that I want to leave things considerably better than when I found them; as such, I welcome all comments and ideas regarding the short- and long-term future of your Atlanta Area Chapter of the Appraisal Institute.
2017 will have its share of changes and challenges, but I am also hopeful that we can capitalize on some opportunities. We have an excellent slate of committee chairs and members being tasked with representing and improving your organization, including three new task forces assigned to creating fresh and inventive chapter-developed commercial and residential seminars; ensuring accolades are given to deserving members; and, furthering recruitment goals associated with the GI Bill.
Perhaps of highest importance, I can inform you that chapter dues did not increase this year and we are continuing to provide education vouchers for practicing designated members who paid their dues before January 31, 2017. Also, be on the lookout for scholarship opportunities, coming later in the year, for qualifying and advanced education.
We are planning at least three networking/socializing events aimed at attracting members who do not frequently come out to our chapter dinners. We are looking into holding an event at the rooftop putt-putt course on top of Ponce City Market for the spring, which offers a great view of the city from one of Atlanta's hottest submarkets. In the summer, we plan to load up the Beltline's tour buses for what I hope will be an annual outing where everyone can share appraisal war stories and witness the continual evolution and revitalization of several dozen of Atlanta's neighborhoods over our appraisal careers. In the fall, we will host another outing at TopGolf, which drew a considerable crowd and provided a great experience for younger, middle-aged and older members and candidates alike last fall. We hope you can find time to join us, or that the ideas serve as inspiration for your office/colleagues to get out and enjoy the city and state we all enjoy appraising.
Education Schedule is provided further down this newsletter.
- Chapter Dinner Meeting & Region IX LDAC Conference, 5/12/17
- Region IX Committee Meeting, 5/13/17, Atlanta
- AI National Board Meeting, 6/6-7/17, Ottawa
- AI National Conference, 6/8-11, Ottawa
- Summer Chapter Meeting (Special Event Details TBA)
- Fall Chapter Lunch Meeting, 10/5/17, Cobb Galleria Centre
- Joint Regions V, IX, X Meeting, 10/13-14/17, New Orleans, LA
- Holiday Party & Installation of 2018 Officers & Directors, December TBA
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Building your brand. Increase your real estate profile. Connect with Georgia's leading valuation experts.
Be a 2017 Atlanta Area Chapter of the Appraisal Institute Sponsor.
The Appraisal Institute is the world's foremost organization for real estate valuation professionals. The Atlanta Area Chapter AI is at the forefront of providing current educational courses and topical seminars, luncheons, and dinners featuring industry leaders and networking opportunities that support development of business relationships - all with the goal of providing the Georgia real estate community with a high level of valuation knowledge and skills it expects and deserves. Sponsors are vital to support this mission.
In what we anticipate to be our most dynamic year ever, we are offering a superb package of 2017 sponsorship opportunities. Benefits include excellent exposure, industry good will, connection with the city's most lauded valuation experts and the opportunity to brand your company as a supporter of quality valuation services.
For more information on becoming an Atlanta Area Chapter Appraisal Institute sponsor, contact Suzanne Brockway at [email protected] or call (770) 803-0024.
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2nd Quarter Chapter Meeting
Friday, May 12, 2017
- SAVE THE DATE
New Location
Cobb Energy & Performing Arts Center, 2800 Cobb Galleria Pkwy., Atlanta, GA, 30339
Schedule
9:00 a.m. - 5:00 p.m. - Region IX LDAC Conference (Topics To Be Announced) *
5:00 p.m. - 6:30 p.m. - Reception
6:30 p.m. - 8:15 p.m. - Atlanta Area Chapter Dinner Meeting
*
The
Region IX Leadership Development & Advisory Council Conference provides participants an opportunity to meet with their professional peers, during an open discussion forum, facilitated by discussion leaders and covering several different hot real estate appraisal topics. Attendance will be limited to 40 participants.
Continuing Education
We will apply for 7 hours of continuing education with the Georgia Real Estate Appraisers Board and the Appraisal Institute.
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2017 Education Schedule
Advanced Education
- Advanced Income Capitalization, April 10-14, 2017
- Advanced Market Analysis & Highest & Best Use, August 14-18, 2017
2017 Qualifying Education
Continuing Education
- GSU Economic Forecasting Center Conference, Feb. 22, 2017 (3 hours)
- Region IX Leadership Development & Advisory Council Conference, May 12, 2017 (7 hrs)
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GSU Economic Forecasting Center Conference, May 18, 2017 (3 hours)
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National USPAP Update, June 22, 2017 (7 hours)
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Uniform Appraisal Standards for Fed Land Acquisitions: Practical Applications (15 hrs)
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GSU Economic Forecasting Center Conference, Aug. 23, 2017 (3 hours)
- State of Atlanta, Oct. 5, 2017 (3, 4, or 7 hours ... your pick)
- GSU Ecomomic Forecasting Center Conference, Nov. 15, 2017 (3 hours)
- Additional CE throughout 2017 will be added based on demand and development
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Candidate Guidance Committee Report
We had a successful candidates meeting prior to our last Chapter meeting and anticipate quite a few candidates to obtain their designation this year! Our chapter currently has 99 candidates. Of these, 42 have 3 or less requirements to complete their candidacy. We are continually looking for ways to gain new candidates and facilitate the process of candidates obtaining their designation. If you have any suggestions or questions about our candidate program, please feel free to contact Bo Bass, MAI, at 770-832-1770 or
[email protected]
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Congratulations Jean Walker Moss, MAI
2016 Legion of Leaders Award Recipient
 Jean Walker Moss, MAI, of Marietta, Georgia, was presented with the 2016 Legion of Leaders Award on November 10, 2016, for her many years of highly distinguished and exemplary service to the Atlanta Area Chapter Appraisal Institute and the appraisal profession.
Jean Moss is an exceptional ambassador for the Appraisal Institute. We're proud to be represented by individuals like Jean, who faithfully serve our organization and the real estate valuation profession, as well as their local communities.
Jean has been Vice President, Director of Wells Fargo Bank - RETECHS division, in Atlanta since 2005. She has been involved in the real estate valuation profession for 28 years. She holds a bachelor's of business administration in finance from the University of Georgia in Athens, Georgia. She joined the Appraisal Institute in 1987, and received her MAI designation in 1992.
She is a member of First Presbyterian Church, in Marietta, Georgia, and an ongoing contributor and former volunteer for Must Ministries in Marietta. She has been married for 40 years and has one daughter and son-in-law.
Congratulations William "Ted" Anglyn, MAI
Appraisal Institute Region IX Volunteer of Distinction
William "Te
d" Anglyn, MAI, of Marietta, Georgia, was recognized as the Appraisal Institute's November "Volunteer of Distinction" for Region IX
The Appraisal Institute is the nation's largest professional association of real estate appraisers; Region IX consists of Alabama, Arkansas, Georgia, Louisiana, Mississippi, South Carolina and Tennessee. Anglyn is a member of the Atlanta Area Chapter.
"Ted Anglyn is an outstanding example of the high standards held by Appraisal Institute professionals," said Appraisal Institute 2016 President Scott Robinson, MAI, SRA, AI-GRS. "We feel fortunate to have volunteers like Ted, who are willing to devote their time and talent to helping their communities and advancing the valuation profession."
Anglyn served as a member of the national Nominating Committee (2010), Finance Committee (2005-06), 717 Business Model Committee (2003-04), Nominating Committee Alternates (2004), Board of Directors (2000), Board of Directors Liaison of the Seminars Subcommittee (2000), Seminars Division Committee (1998-99) and chair of the Youth Advisory Council (1997), vice chair (1996), discussion leader (1995) and member (1992, 1994). He also served on the General Appraiser Board Demonstration Reports Subcommittee (1993-96), Anglyn has served the Atlanta Area Chapter as president (1999), vice president (1998), secretary (1997) and treasurer, chair of the Education Committee and chair of the Finance Committee (1996). Anglyn joined a predecessor organization of the Appraisal Institute in 1982, and received his MAI designation in 1989.
He has been president of Parking Property Advisors, located in Atlanta and Miami, since 2009, and has been in the valuation profession for 35 years. He received a bachelor's degree in finance from Auburn University in Auburn, Alabama.
Anglyn has written five seminar books for AI, as well as numerous articles that have appeared in valuation publications including The Appraisal Journal.
Anglyn's volunteer activities include serving at Hampton Elementary School and Habitat for Humanity of Cobb County; being a sponsor of Nurses Week at Grady Memorial Hospital and the Joseph Ferry Baptist Church Middle School Choir. He is a member of the Parking Consultant Council with the National Parking Association, and is a founding board member of the Buckhead (Carl Sanders) YMCA.
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Rep. Brett Harrell Receives 2016 Georgia Elected Official of the Year Award
ATLANTA - State Representative Brett Harrell (R-Snellville) was recently awarded the 2016 Georgia Elected Official of the Year Award by the Atlanta Area Chapter of the Appraisal Institute.
"I sincerely appreciate the Atlanta Area Chapter of the Appraisal Institute for recognizing my steadfast work to protecting private property rights in Georgia," said Rep. Harrell. "I am proud to be an advocate and an ally of the Appraisal Institute's Atlanta Chapter."
Atlanta Area Chapter of the Appraisal Institute President Joe Anderson recently presented Rep. Harrell with the 2016 Georgia Elected Official of the Year Award.
"Representative Harrell has had a long and distinguished record of public service beginning as a planning commissioner, city councilman and mayor of Snellville," said Chapter President Joe Anderson. "He went on to become the U.S. 78 Community Investment District Director, before being elected to the State House from District 106, where he serves as vice-chairman on four House committees. Harrell has been a friend to the real estate industry in general and has always supported small businesses."
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Welcome & Congratulations New AI Professionals!
Designated Members
| Talani Casariego, MAI |
| Blake Fine, MAI |
| Marie Gasner, MAI |
| Ashley Jernigan, MAI |
| John Reiss, MAI |
General Candidate for Designation
Benjamin Levin
Practicing Affiliates
| Bruce Maynard |
| Jack Smith |
| Richard Kenny |
Affiliates
Trevor Bruce
Victor Segrest
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Meet Our New Designated Members
Blake Fine, MAI
Associate Director, Integra Realty Resources
Blake P. Fine is an Atlanta native and grew up in Gwinnett County. Blake attended the University of Georgia majoring in Economics. After college Blake worked for six years in investment banking handling client portfolios. He dealt with a wide array of investments such as private placements, mutual funds, options, and stock trading. During the dot-com boom of the mid 1990s, Blake moved to the technology sector working on several national accounts such as Home Depot, UPS and Coca-Cola for Alteon and Nortel Networks. His positions were in account/ channel management and client development, specifically within the internet hardware and telecom sectors. Blake decided to venture into real estate and began working under Cone Maddox, at Dargan, Whitington and Maddox. Mr. Maddox's knowledge and leadership allowed Blake to become diversified in nearly every property type. Blake's knack for diversity and efficiency led him to Integra Realty Resources. Blake is a perennial top national producer for Integra. Although mostly handling property appraisals in the South, Blake has furthered his diverse appraisal experience with complex assignments, real estate consulting, litigation, client development and national account management. Blake has helped to develop a training program and become a national expert in funeral home and veterinary practice valuations. When not trying to figure out the appraisal puzzle, Blake enjoys
family activities with his wife and four children. Some of his other passions include anything Bulldog or Falcon related, snow-skiing, fishing, golf and the beach.
Marie Gasner, MAI
Appraiser, CBRE
Marie Gasner graduated from the University of Georgia in 2007 with a bachelor's degree in Real Estate. After interning with the company in college, Marie has worked full-time for CBRE, Inc. for almost 10 years, starting as a valuation associate working with the industrial team under Richard A. Francis and Dale W. Helfrich, MAI before being promoted in 2010 to a full appraiser working on industrial, hotels, retail, multifamily and more. Marie is a long-time Georgia resident who now resides in Brookhaven with her boyfriend and their miniature dachshund.
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Ashley Jernigan, MAI
Vice President, SunTrust Bank
Ashley graduated from the University of Georgia with a degree in Real Estate. She began her appraisal career with American Appraisal in Atlanta in 2010, where she gained her Certified General license. In 2015, Duff & Phelps acquired American Appraisal, in which Ashley transitioned to until 2016. Ashley started with SunTrust Bank in 2016 as a review appraiser. Besides her great passion for real estate valuation, Ashley enjoys hanging out with her family, playing with her fur babies, and helping with the family restaurant.
Geg Malcolm, MAI
Greg Malcolm & Associates, Inc.
Greg Malcolm is a native of Atlanta and has over thirty years of real estate appraisal experience in both commercial and residential properties. Before forming Greg Malcolm & Associates, Inc., Greg worked as a real property appraiser for his father in law Jack Lewis, MAI, SRA for five years. Greg established his company along with his wife Kelly in 1991 and has since expanded his knowledge and experience of real estate. Greg is a longtime member of the national, state and local Board of Realtors and is a licensed Salesperson in the state of Georgia. Both of his sons are real estate appraisers and affiliate members of the Appraisal Institute. Connor Malcolm and Taylor Malcolm both plan on pursuing the MAI designation. In his free time, Greg enjoys travelling, boating and golfing.
 Jonathan A. Reiss, MAI
Everson, Huber & Associates, LC
Jonathan A. Reiss, MAI is a senior appraiser with Everson, Huber and Associates in Marietta, GA. Jon graduated from Emory University where he earned a degree in Marketing and Entrepreneurship. During his collegiate years, Jon also studied Economics at Oxford University in England. Jon began his professional career as a sales executive, first with Toshiba and later with IBM. However, real estate was always Jon's passion, and after years in sales, Jon turned his attention to real estate full time and joined Everson, Huber and Associates as an appraiser in 2004. It was at EHA that Jon met his mentors Steve Huber and Larry Everson, and has been with the EHA Firm ever since. Jon has appraised a wide variety of properties throughout the United States with a specialization in multi-family. Jon also holds a Georgia Real Estate Salesperson License. Jon lives in Dunwoody with his family, and when he is not appraising, Jon enjoys coaching his two kids' baseball and soccer teams, playing softball and attempting to play the guitar.
Lucas Thomason Woodruff, MAI
Oracle Healthcare Advisors
Luke graduated from the University of Georgia in 2007 with a bachelor's degree in real estate from the Terry College of Business. After graduation, he worked at The Dorey Companies and then The CoStar Group when it acquired the local real estate data company (Dorey) in 2008. In 2010, he joined Salus Valuation Group, a healthcare appraisal company as an appraiser. Luke has specialized in the appraisal of hospitals, psychiatric and behavioral health facilities, long-term acute care hospitals, specialty hospitals, surgery centers, medical office buildings and a variety of senior housing facilities. In his spare time, Luke enjoys playing and watching sports with his friends, spending time with his wife (Jenny), 14-month-old daughter (Aubrey), dog (Zoey) and traveling to new places.
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January 27, 2017
Dear Appraisal Institute Colleague:
I hope that you're off to a good start in the new year!
If you've been waiting for the new "Yellow Book" to become available, I have some exciting news to share.
New 'Yellow Book' Now Available
A new version of the Uniform Appraisal Standards for Federal Land Acquisitions, commonly known as the "Yellow Book," is available. The "Yellow Book" is promulgated by the Interagency Land Acquisition Conference for use by all agencies for federal land acquisitions.
Additionally, the Appraisal Institute is scheduled to debut a new version of its Uniform Appraisal Standards for Federal Land Acquisitions: Professional Applications course in April in Chicago. There also is a recorded webinar available, Yellow Book Changes - Overview for Appraisers.
AI Publishes New Guide Note on Arbitration
Guide Note 16: Arbitration, approved by the Appraisal Institute Board of Directors in November, is now available on the AI website.
According to the Guide Note, real estate valuation professionals often are retained to provide services in arbitration matters either as arbitrators or expert witnesses. Arbitration is an alternate dispute resolution process in which the parties to a dispute agree to present their case to one or more arbitrators who render a final decision to resolve the dispute rather than try the issue in court.
AI to Premiere Solar Course
Attendees at the course will expand their knowledge base to understand how electricity is priced, how solar PV is priced and how solar PV functions to develop a credible opinion of value.
Learn more about the course, as well as other dates and locations.
AI Suspends Full Implementation of New Chapter Policy
The Appraisal Institute Board of Directors on January 10 voted to suspend full implementation of the new Chapter Financial Management and Administration Policy - previously targeted for January 1, 2018 - to a date to be determined later.
The Board had adopted that policy on November 18. Board members have spent considerable time since then receiving feedback from chapter leaders and other Appraisal Institute professionals about the new policy. The Appraisal Institute will continue to solicit and receive AI professionals' input, so I encourage you to convey your constructive feedback to members of the Board.
Under the policy, chapters will retain their duties and responsibilities to develop a budget, select vendors, authorize payments, determine how funds are spent, and establish compensation packages for chapter staff. Chapters no longer will be burdened with the administrative tasks of performing accounting services, paying vendors and preparing financial reports, among others. These duties will shift to the Appraisal Institute's national finance staff.
AI Accepting Norminations for 2018 Vice President
The Appraisal Institute is seeking names of those professionals interested in serving as the 2018 vice president of the organization. The 2018 vice president will become president-elect in 2019, president in 2020 and immediate past president in 2021.
Deadline for submission has been extended to February 24.
See the qualifications for 2018 vice president. Nominees may not serve as a member of the National Nominating Committee at any time during the year in which their candidacy would be considered. This requirement does not preclude consideration for the office in future years.
Appraisal Institute professionals interested in serving or wishing to recommend someone for the position, please submit your recommendation in writing to:
Scott Robinson, MAI, SRA, AI-GRS, chair, 2017 National Nominating Committee
c/o Joan Barngrover
Appraisal Institute
200 W. Madison Avenue, Suite 1500
Chicago, IL 60606
The National Nominating Committee is scheduled meet in Chicago, May 23-24.
AI Distributes 45-Day Notice of Proposed Amendments
The Appraisal Institute Board of Directors at its February 23-24 meeting in Chicago will consider proposed amendments to Appraisal Institute Regulation Nos. 1, 2 and 3 concerning:
- Defining Experience;
- College Degree Requirement; and
- Harmonization of Regulation Nos. 1, 2, and 3.
The proposed changes are not expected to have any financial impact.
View the 45-Day Notice (AI log-in required).
Comments on the proposals should be sent to AI's elected directors and/or via email to [email protected]. Comments sent to this email will be compiled for distribution to the AI Board of Directors prior to the board meeting.
AI Participates In Key Industry Events
In keeping with the Appraisal Institute's commitment to convey its thought leadership to real estate professionals and others, President-elect Jim Murrett, MAI, SRA, presented at the Environmental Bankers Association Winter Conference, January 16-17, in Tampa, Florida.
Additionally, AI exhibited at the National Association of Home Builders International Builders' Show, January 10-12, in Orlando, Florida, which featured nearly 1,600 exhibitors and almost 60,000 attendees.
Other News Around AI
And here's some additional important news from the Appraisal Institute:
- The Appraisal Institute Board of Directors, on its January 4 conference call meeting, elected Ryan M. Hlubb, MAI, SRA, chair of the AI Strategic Planning Committee through December 31.
- Stay tuned for additional information about the 2017 International Valuation Conference, June 8-11, in Ottawa, Ontario. Registration will open soon. For now, learn more about this outstanding event!
- Last year, the Appraisal Institute and its professionals appeared in more than 1,300 stories that ran in nearly 600 unique media outlets and were potentially read, seen or heard more than 1.8 billion times ... with a value of nearly $1.9 million (according to vendor's proprietary formula).
- View a 4:30-minute video of AI's July-December 2016 media coverage highlights on the Appraisal Institute's YouTube channel.
- AI recently posted a video in which I outline the organization's plans for advancing the valuation profession.
- The Appraisal Institute received an AVA Digital Award in the Informational category from the Association of Marketing and Communication Professionals for its video on Valuing Stigmatized Properties. AVA Digital Awards in an international competition that recognizes excellence by creative professionals responsible for the planning, concept, direction, design and production of digital communication.
- If you haven't already done so, check out the latest quarterly edition of Valuation magazine, which contains timely and informative articles about relevant topics.
- The Appraisal Institute continues to grow its social media presence. Be sure to follow AI on Facebook, Twitter, LinkedIn, YouTube and the Appraisal Institute blog, Opinions of Value.
Have an outstanding month!
Sincerely,
Jim Amorin, MAI, SRA, AI-GRS
President
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Photo Gallery
Andy Sheppard, MAI
received the 2017 Chapter President's pin at the annual Chapter Leadership Program held in Chicago in September 2016.
Photo taken with
Jim Amorin, MAI, SRA, AI-GRS
2017 National AI President
Atlanta Area Chapter Meeting - 11/10/16
Installation of Officers & Directors
(Left Photo)
Hank Wise, MAI, installs Andy Sheppard, MAI, as 2017 Chapter President
(Right Photo) Joe Anderson, MAI, passes the gavel to Andy Sheppard, MAI (right)
2017 Atlanta Area Chapter Board of Officers & Directors
(Left to Right) Directors: Philip Thomas, MAI; Brad Carter, MAI; Gene Carden, SRA, AI-RRS; George Petkovich, MAI; Dan Fries, SRA; Joe Anderson, MAI; Dori Bower, MAI (Treasurer); Sherry Watkins, MAI (Secretary); and Marlon Day, MAI, SRA (Vice President). Not shown in this photo are: Patrick Adamson, MAI, SRA (Director); and Jeff Bowling, MAI, SRA (Director)
Congratulations New Designated Members!
Greg Malcolm, MAI (Left) and Luke Woodruff, MAI (right) received their MAI Designation.
Certificates presented by Joe Anderson, MAI, 2016 Chapter President
Ryan Kiefaber, MAI, (center) received his MAI Designation.
Certificate was presented by Randy Haumesser, MAI; (left) and Dori Bower, MAI (right)
Atlanta Area Chapter Meeting - 1/26/17
Congratulations New Designated Members!
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| (Left to Right) Blake Fine, MAI; Talani Casariego, MAI; Ashley Jernigan, MAI; and Jonathan Reiss, MAI - Photo shown with Jim Amorin, MAI, SRA, AI-GRS, National AI President |
Ashley Jernigan, MAI (left); Jonathan Reiss, MAI (right)
Talani Casariego, MAI (right); Blake Fine, MAI (right)
Chapter Meeting & Reception
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As Chapter President, I feel it is important to give back in multiple ways. I'm challenging all future Presidents to write at least one article for our Chapter Newsletters, and to encourage as many brief educational messages from our members as possible. Gauntlet thrown!
An Important Verification Question You Might Not Be Asking
By Andy Sheppard, MAI
Do you remember the last house, vacant lot, office building, or car you bought? Did you, on Day 1 of your search, pull up to it and say "Yes, that's the one!" or did you investigate numerous houses/lots/buildings/cars before you signed on the proverbial dotted line? My first (and second) house purchase came with more than a half-dozen home inspection fees, which luckily helped me avoid buying money pits that would have required many multiples of the total from all of the inspections, before I found "the one" (and "the second one").
More times than not, people are investing in both the product (i.e., the house, the lot, or the office building) and the area in which it resides; as such, it is highly likely that they know a lot more than we appraisers glean from the area as we go from submarket to submarket. These buyers (and sellers relocating within the same area) often have stories to tell about their search that we appraisers may not be capitalizing on.
Some broad questions for buyers (or sellers relocating into the same area) to open a dialog:
- "I saw you bought 3432 Donnelly Street for $68/SF ... Congrats!
- Did you see that 3456 Donnelly Street was listed for $74/SF and sold for $71/SF in the same general timeframe as your purchase?
- Did 3456 provide the same basic layout and features for your business to function there?
- What type of work did 3456 need, compared to your building/purchase?
- Was there anything else about 3456, in comparison with your purchase/building, you can think of that caused the higher price?"
- "Did you see that 1234 Peachtree Street sold for $14/SF less than your purchase at $138/SF?
- Did you look at buying 1234?
- What deterred you from buying 1234?
- What did you think about the cap rate it sold at, relative to the NOI the seller was reporting?"
- What kind of cap rates are sellers looking for in this market?"
We all know that verification responses range between "eye rolls" you can feel across the phone and truly helpful people who recognize and appreciate why we call. My suggestion is to have something teed up for when you get that Golden Goose on the other end of the line. I find that the casual and methodical exchange of information keeps people on the phone and adds to my understanding of the market, much more than saying "If you can just confirm the price and land area [known from the deed and PT-61] I'll get out of your hair!" In a world where fees are dropping, and some appraisers want to get off the phone quicker than the person on the other end of the phone, I say stand apart and uphold the standard of excellence we all associate with our Appraisal Institute designations.
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Appraiser Shortage
By D. Scott Murphy, SRA
I received feedback from one Georgia appraiser who challenged my statement that there is an appraiser shortage. He is a commercial appraiser and felt that if anything there was an oversupply of appraisers. He is correct and I stand corrected. There may be an oversupply of commercial appraisers but there is definitely a shortage of residential appraisers. This is possible because commercial appraisals are not effected by Fannie Mae guidelines and as I stated in my article, the main reason we have a shortage is due to Fannie Mae's policy change in 2008 requiring supervising appraisers to inspect the interior of the subject and the comparables.
Here is an excerpt from that notice: 08-30 - November 14, 2008
Fannie Mae defines the appraiser as the individual who personally inspected the property being appraised, inspected the exterior of the comparables, performed the analysis, and prepared and signed the appraisal report as the appraiser. Fannie Mae allows an unlicensed or uncertified appraiser who works as an employee or subcontractor of a licensed or certified appraiser to perform a significant amount of the appraisal (or the entire appraisal if he or she is qualified to do so)-as long as the appraisal report is signed by a licensed or certified supervisory or review appraiser and is acceptable under state law. This policy is updated to now require that if a supervisory appraiser signs the appraisal report as the appraiser, the supervisory appraiser must have performed the inspection of the subject property.
This past week Fannie Mae issued revision to the Selling Guide. I would like to think my article "Appraiser Shortage" played a part in this policy change but I know mine was just one voice amongst many who saw this as a critical step in fixing the Appraiser shortage issue.
Fannie Mae released revisions to the Selling Guide this past Wednesday - 01/31/2017; B4-1.1-03: Appraiser Selection Criteria.
As noted in the License and Certification section in this topic, Fannie Mae allows an unlicensed or uncertified appraiser, or trainee (or other similar classification) that works as an employee or subcontractor of a licensed or certified appraiser, to perform a significant amount of the appraisal (or the entire appraisal if he or she is qualified to do so), as long as the appraisal report is signed by a licensed or certified supervisory or review appraiser and is acceptable under state law.
If a supervisory appraiser is used, the supervisory appraiser does not need to physically inspect the subject property or comparables, but must sign the right side of the report and certify that he or she
- directly supervised the appraiser that prepared the appraisal report,
- has reviewed the appraisal report,
- agrees with the statements and conclusions of the appraiser,
- agrees to be bound by certifications as set forth in Fannie Mae's appraisal report forms, and
- takes full responsibility for the appraisal report.
A supervisory appraiser may not sign the left hand side of the appraisal report unless he or she has met the requirements of the appraiser as noted in the License and Certification section in this topic.
Some may argue that the policy has not changed but is simply being clarified. However, prior to 2008 a trainee was allowed to sign the appraisal as the appraiser (signing on the left side) with the supervisor signing on the right side and checking the box the he did not inspect the subject or the comparables. Effective with the announcement 08-30 supervisors were then required to inspect the subject property and comparables. This immediately disincentivized supervisors from using residential trainee appraisers, virtually cutting off the opportunity for new residential appraisers to find mentors and the numbers of residential appraisers precipitately declined ever since.
Policy change or clarification, it is critical that residential lenders update their policies to allow trainees to act as appraiser and not require the supervisor to inspect the subject property or the comparables, as clearly outlined in the Fannie Mae Selling Guide. This will immediately encourage certified appraisers to mentor trainee appraisers, who once properly trained, will be able to inspect the subject property and the comparables, allowing the supervisor to focus on comparable selection and analysis.
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In Memory of Ron Heckman
Zero is an Adjustment
By D. Scott Murphy, SRA
In December, the appraisal industry lost one of its finest appraisers. Ronald Heckman passed away after battling cancer for the fourth time in his 67-year life. His stand up and fight attitude was evident in his professional life as well as his personal life. He was an organizing member of the Georgia Real Estate Fraud Coalition - shortly renamed after inception to the Georgia Real Estate Fraud Prevention and Awareness Coalition, because, as Ron explained to me, people were calling to find out how to do mortgage fraud. That organization, the first of its kind, became a model for 100's of others started across the county and it was one of the primary reasons Georgia was the first state to legislate a statute to target mortgage fraud.
Ron was a true leader in the appraisal industry. Being a second-generation appraiser like myself, appraising was in his blood. Having appraised for over 46 years he knew the business forward and backward. His most recent position was Vice President and Chief Review Appraiser, Consumer Credit Risk Management for SunTrust Bank here in Atlanta. He was always a go-to person for me to help contemplate the difficult appraisal issues. Ron and I would talk regularly about complex appraisal questions and unique properties.
One day years ago, he made a statement which resonated with me for its simplicity and complexity all at the same time. He was reviewing an appraisal where an appraiser had decided to make no adjustment for the subject's inground pool. The appraiser's comment said that he was unable to find any comparables with a pool, therefore he was not going to make any adjustment to the comparables.
Ron's comment was "but he did make an adjustment - zero is an adjustment". You see, when an appraiser starts an appraisal report all the lines in the sales comparison approach are blank - they are not zeros. The appraiser is obligated to analyze every aspect of the subject's market value. He is to find comparables and make adjustments for any variances. If he feels the comparable is identical to the subject property - or so similar that a typical buyer would not pay more or less - then he inputs a zero in the adjustment field for that particular item. It takes just as much analysis to determine the adjustment is zero as it does to put any other number in that field. In my opinion and I know Ron would agree, I would rather see the appraiser put something there rather than nothing.
We see this all the time, very few if any adjustments on the appraisal grid. Granted it is impossible to adjust for everything but the true purpose of the adjustments grid is to delineate any differences in the subject property which would be identified by a typical buyer. The adjustments are to be made based on market reaction to that item by a typical buyer and are not directly related to cost. Economies of scale and diminish return play into these adjustments. As I have said on many occasions, there is no list of adjustments. Adjustments must be extracted from the market based on paired sales analysis or regression analysis.
Here is the inside scoop. Any appraiser will tell you that the problem is that when they make an adjustment for an item they truly feel needs to be compensated for, then they are open to challenge and pushback from the underwriter. When in fact the lack of an adjustment for a major item requires just as much justification. It is extremely rare and almost unheard of for an underwriter to ask for comments on the lack of adjustments. This has trained appraisers to put zero unless they feel very comfortable and can prove their adjustment. The fact of the matter is that short of running a regression analysis for every item on every appraisal, none of the adjustments can be truly proven.
One area of the appraisal I see the
zero-adjustment used incorrectly on a regular basis is the site adjustment. How many subdivision lots "sell" for the same amount? I realize most subdivision lots don't sell but as part of the sales price there is most often a lot premium and each is different. As they should be, most every lot is different from the next. The value is not just in size but topography, frontage, etc. Of course, view is also a lot related feature which we adjust for on the next line of the report but together they comprise and are to reflect the total value of the subject lot.
So, the next time you are completing an appraisal and you enter a zero for an adjustment, remember Ron's rule - Zero is an adjustment. Make sure you can support that adjustment.
Ron was not only a very skilled appraiser but a good friend to me and many others - he will be sorely missed.
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2017 Chapter Leadership
OFFICERS
President -
Andy Sheppard, MAI
Vice President -
Marlon Day, MAI, SRA
Secretary -
Sherry Watkins, MAI
Treasurer
- Dori Bower, MAI
DIRECTORS
Joe Anderson, MAI, Immediate Past President, (Ex Officio)
Jeff Bowling, MAI, SRA, (Ex Officio)
Dan Fries, SRA, (Ex Officio)
Patrick Adamson, MAI, SRA
Gene Carden, SRA, AI-RRS
Brad Carter, MAI
George Petkovich, MAI
Philip Thomas, MAI
REGIONAL REPRESENTATIVES
Hugh "Bo" Bass, Jr., MAI
Gene Carden, SRA, AI-RRS
Marlon Day, MAI, SRA
Jeff O'Dell, MAI
Peter Lamas, MAI
Syrah Paul, MAI, SRA
George Petkovich, MAI
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The articles in this newsletter represent the authors' opinions and do not represent the opinions of the Atlanta Area Chapter Appraisal Institute.
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