As the pandemic continues to create uncertain times for appraisers across the country, I remain very proud of the Appraisal Institute’s professionals. With these unprecedent times, and increased attention on alleged valuation bias, AI is doing everything that we can to advocate on appraisers’ behalf. Learn more about that, and other timely updates, from the past month.
AI Seeks to Partner with TAF on Alleged Bias in Valuation
As you might have seen, two studies have been released in recent years that are gaining some attention in light of recent events in Minneapolis and elsewhere. The Brookings Institution conducted a study on racial wealth gaps attributable to valuation processes. It does not review appraisals, but uses Zillow and owner estimates of value to draw inferences about appraisal. Another report was published by the American Sociological Society, which interviews several field appraisers and takes issue with appraisal neighborhood/location adjustment processes.
The body of knowledge is well established and accepted. The appraisal process is rigorous, and we must defend it to the greatest extent possible. People (and appraisers) are not perfect. We can do more to reinforce existing requirements and to help illuminate important issues. That spirit is central to our Aug. 20 letter to TAF and to the actions we are taking to improve education and awareness.
We are suggesting that the AQB Real Property Appraiser Qualification Criteria can be more illustrative on matters involving bias and that USPAP could too. We are already working with Fannie Mae and the National Urban League on introducing the appraisal profession to minority communities, which utilizes scholarships from the AI Education and Relief Foundation.
We will continue to reinforce these initiatives and play our role in public policy development, promoting liquidity and economic development.
Craig Steinley Elected 2021 AI Vice President
You might be interested to learn that the Appraisal Institute Board of Directors elected Craig Steinley, MAI, SRA, AI-GRS, AI-RRS, of Rapid City, South Dakota, as 2021 vice president at its Aug. 6-7 virtual meeting. Steinley’s one-year term at the Appraisal Institute will begin Jan. 1, followed by one year each as president-elect, president and immediate past president.
Steinley serves nationally on the Appraisal Institute Board of Directors as Region II vice chair. He previously served on the Audit Committee, including as chair and vice chair; as Region II chair; on the Strategic Planning Committee; Professional Liability Insurance Program Committee; as Region II vice chair; Region II third director; on the Governance Structure Project Team; and on the Professional Standards and Guidance Committee.
He also has served as president of the Wyoming and Western South Dakota Chapter. He participated three years in the Leadership Development and Advisory Council conference, and is an education developer and instructor for the Appraisal Institute.
He received a 2015 Volunteer of Distinction recognition.
Craig is now included in the meetings of the elected officers. We continue to collaborate on ways to improve the Appraisal Institute and the value it offers to members and membership. We look forward to his input.
AI Webinars Continues to Provide Timely Information for Appraisers
Here’s some current and important information that may be useful to your business during this pandemic.
The Appraisal Institute continues to host a weekly AI Answers session most Wednesdays. These sessions are conducted via GoToMeeting. Please check out the recordings of these sessions.
During the Aug. 19 session, Appraisal Institute Director of Government and External Relations, Bill Garber, gave an update on several bills that the Appraisal Institute has been advancing in the current Congress. Some of these bills include: a new law that fully funds the largest pool of real estate appraisal assignments from the federal government; legislation that would establish a nationwide appraiser licensing system or “portal;” and a bill that would protect property rights – through appraisal requirements – in natural gas pipeline projects.
On Aug. 26, Bill Garber spoke with Hunden Strategic Partners’ President and CEO, Robert Hunden; Greenfield Advisors’ Managing Director, John Kilpatrick, Ph.D., MAI; Appraisal Services’ Appraiser, Alan Leirness, MAI; and independent consultant, Robert Lewis, FAICP, CEcD. The panel discussed the skillset brought to adaptive reuse projects, including how appraisal methods and expertise in the cost approach, market analysis, feasibility analysis and highest and best use analysis are central to scope of services requests.
Learn the Latest News and Updates on How COVID-19 Affects Appraisers
The Appraisal Institute continues to provide vital information on how the coronavirus pandemic is affecting appraisers around the world. On our Coronavirus Updates page, you’ll continue to find news and updates from federal, state and Appraisal Institute resources. You’ll also find all of AI’s resources that are relevant to the pandemic including: AI Answers, webinars, ANO articles, guides, summaries and emails.
Please visit the Coronavirus Updates page on AI’s website.
New Education Offering Concentrates on Market Analysis
If you are a residential appraiser, I encourage you to check out AI’s 7-hour seminar, ” Rapid Response: Market Analysis in Volatile Markets,” which will premiere Oct. 12, in Chicago.
This seminar will show you how to locate contemporary data for your clients, and how to rapidly and accurately read and report on market changes.
Other News Around the Appraisal Institute
And here’s some other important news from the Appraisal Institute:
- I am excited to announce that in early September, AI’s body of knowledge will be expanding! “The Appraisal of Real Estate,” 15th edition, will be available for purchase. Stay tuned for further details and don’t forget to order your copy when it becomes available! You might also want to consider buying extra copies so that you can provide them to your best clients.
- I’m pleased to share that the Appraisal Institute will host an awards ceremony the evening of Monday, Sept. 21, during which we’ll recognize some of our colleagues making incredible contributions to AI and the valuation profession. Stay tuned for further details.
- Congratulations to 2016 Appraisal Institute President and 2020 Strategic Planning Committee Chair Scott Robinson, MAI, SRA, AI-GRS, AI-RRS, on his election as president-elect of the World Association of Valuation Organizations. Way to go, Scott!
- The Appraisal Institute on Aug. 11 applauded Sen. Ron Wyden (D-Ore.) for introducing the NGA Modernization Act, and urged its swift consideration and enactment. In its statement of support, AI said, “The obligations of condemnors, and the rights of condemnees, are currently undefined by the Natural Gas Act (NGA). In contrast, federal agencies directly utilizing the power of eminent domain have clear appraisal requirements and property rights protections that help build confidence in just compensation determinations. These include real estate appraisals prepared under uniform appraisal standards, coupled with opportunities for property owners to accompany appraisers on inspections to point out unusual or hidden property features or impacts from the taking that might otherwise be overlooked.”
- The Appraisal Institute continues to expand its social media activities. Be sure to follow AI on Facebook, Twitter, LinkedIn and YouTube.
Have a safe month!