Nov. 26, 2021
Dear Appraisal Institute Colleague:
I’ve got a lot of great news to share this month, including the Appraisal Institute’s new strategic priorities, as approved by the Board of Directors at its November meeting. Please join me in celebrating these developments from our organization.
AI Board of Directors Approves Strategic Priorities for 2022
If you haven’t already heard, I’m proud to share that the Appraisal Institute Board of Directors at its Nov. 11-12 meeting in Chicago approved the Strategic Plan strategies that will guide the organization’s efforts in 2022, and beyond.
The adoption of these strategies is a major step forward as the organization looks to the future and will allow the Appraisal Institute to maintain its long-held position as the valuation profession’s thought leader. The Strategic Plan is the culmination of much careful thought and deliberation and is a critical step that we all can be proud to have accomplished!
As a reminder, the Board approved the overall Strategic Plan at its August 2021 meeting, and the strategic planning process included input from AI professionals who responded to surveys regarding membership needs. I can’t emphasize enough how vital that membership input was to the process, and I express my sincere gratitude to all who participated. As previously announced, the Strategic Plan includes four Goals:
- The Appraisal Institute will protect and improve the value of affiliation.
- The Appraisal Institute will provide leadership toward a unified and inclusive profession with diverse perspectives.
- Appraisal Institute professionals will be consistently sought out by users of valuation services.
- The Appraisal Institute will improve the diversity of its affiliated professionals.
In 2022, the organization will pursue those goals with a focus on the following Board-approved strategies.
- Modernize AI’s education delivery system and products.
- Modernize technology, such as social media and communication methods, and a review of the website.
- Develop a plan to recruit and retain AI professionals.
- Implement PAREA.
- Develop a diversity, equity and inclusion (DE&I) action plan.
These strategies will positively impact the following Board-defined objectives in the coming year and beyond by increasing:
- The value proposition of affiliation;
- AI professionals’ retention rates;
- The breadth and diversity of individuals new to affiliation;
- Diversity among AI leadership;
- Opportunities for AI professionals to identify and gain knowledge to enhance their professional services;
- Efforts to eliminate irrelevant and inappropriate barriers to entry into the profession;
- Opportunities to obtain relevant experience in the profession; and
- Positive perception of the organization among key growth areas.
Objectives have a three-to-five-year timeframe and will be reviewed periodically by the Board of Directors.
The aforementioned strategies will guide the Appraisal Institute’s efforts in 2022, and the overall Strategic Plan will be implemented in phases over the next several years. Some of the efforts that begin in 2022 are expected be completed next year, while others may take several years to fully implement.
The Board of Directors and Strategic Planning Committee will regularly review the Strategic Plan and adjust priorities as needed. Further information regarding the Strategic Plan will be available in the near future and I encourage you to stay tuned to Valuation magazine, the monthly President’s Message, Appraiser News Online and AI’s social media channels. Further, AI’s Executive Committee, and other leaders, will happily address these issues at future region and chapter events.
While the organization has always carefully looked at its priorities, and how to best serve its membership and the profession, this Strategic Plan has become the North Star guiding the organization and will ensure that AI professionals, and future appraisers, have the opportunity to thrive and are recognized as a vital component of the real estate ecosystem.
AI Receives Pathway to Success Grant from TAF
The Appraisal Foundation’s Board of Trustees announced Nov. 16 that it awarded the Pathway to Success Grant to the Appraisal Institute for the development of a PAREA program. The competitive grant application was reviewed, scored and recommended for approval by a team representing Foundation trustees, sponsoring organizations and the Appraiser Qualifications Board.
The Appraisal Institute will receive the full grant amount of $500,000 to build its PAREA program in collaboration with its partners, provided that program development continues to hit predetermined milestones. The AI Board of Directors approved the development of PAREA in September, committing more than $2 million toward the development of a PAREA program.
The Pathway to Success Conditional Grant is designed to open up the appraisal profession to a new generation of appraisers. The grant requires that the PAREA program be brought to market within two calendar years and is conditional on the completion of the project. The grant also stipulates that participant priority be given to veterans, minorities and those in designated rural areas.
PAREA is an alternative pathway for aspiring appraisers to gain their required experience hours to become a certified appraiser. Historically, the only option for an appraiser to complete their experience hours was through a supervisor/trainee model that requires the aspiring appraiser to find their own supervisor. PAREA is currently accepted in 20 states, and that number is set to increase as more states adopt this alternative pathway.
As I noted in the news release that was distributed about PAREA, “One of the Appraisal Institute’s top priorities is to create a pathway for a diverse new group of individuals to enter the valuation profession.” “The Appraisal Institute is excited about this terrific collaboration and we’re proud to help the next generation of appraisers.”
Appraisal Institute Board of Directors Adopts 45-Day Notice Items
The Appraisal Institute Board of Directors voted to adopt three 45-Day Notice items during its Nov. 11-12 meeting in Chicago. The 45-Day Notice items address Designated Member Status, Compensation Committee and Standards of Valuation Practice.
Read more about the Board’s actions at its November meeting here.
New Seminar Provides Overview on Accessory Dwelling Units
Accessory dwelling units are on the rise across the country amid the ongoing shortage of housing inventory. If you work in a market where ADUs are prevalent, I’d recommend you check out AI’s new in person seminar, “Valuation Overview of Accessory Dwelling Units” on Dec. 10 in Chicago.
The seminar provides an overview on ADUs focusing on the description, legal concerns, valuation methods and techniques needed to value them. You’ll learn about the valuation challenges and discover how the recent changes in the secondary mortgage market selling guidelines now provide more guidance and flexibility in valuing and financing ADUs. This seminar will help you complete appraisal assignments with ADUs competently.
To learn more about this exciting new offering, click here.
“Basic Appraisal Procedures” Course Launches Next Week
The Appraisal Institute’s new course, “Basic Appraisal Procedures,” will help participants apply the principles and concepts learned in the Basic Appraisal Principles course, including: defining the problem, collecting and analyzing data, reaching a final opinion of value and communicating the appraisal.
The course will guide participants through the sales comparison approach, including researching the market, verifying information, selecting units of comparison, conducting a comparative analysis, making adjustments and reconciling conclusions.
Special Thanks to Immediate Past President Jefferson Sherman
I was proud to celebrate the service and commitment of Immediate Past President Jefferson Sherman, MAI, AI-GRS, at our November Board meeting. Jeff has been a steadfast presence in our organization for years and we look forward to his continued dedication to the Appraisal Institute.
Jeff shared the following message:
Thank you Appraisal Institute for the honor of being your 2020 president, and thank you Rodman Schley for a tremendous year of leadership; it truly does take a team. We are so strong because of our membership, chapters, committees, the national Board of Directors and our outstanding staff. You all have helped to place us on the cusp of great opportunities. Stay tuned.
Other News Around the Appraisal Institute
And here’s some other important news from the Appraisal Institute:
- Interested in completing your demonstration of knowledge requirements for your MAI designation at an accelerated pace? Learn more and register now for the General Demonstration Report-Capstone Program: https://bit.ly/3FKYPxD
- The Appraisal Institute continues to expand its social media activities. Be sure to follow AI on Facebook, Twitter, Linked In, YouTube, and its blog, Opinions of Value.