Opinions of Value

Your source for appraisal news and trends

Save the Date for the 2015 Appraisal Institute Annual Meeting!

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AIconnectlogoMake sure to save the date for the Appraisal Institute’s 2015 Annual Meeting that will be held July 27-29 in Dallas, Texas!

The Appraisal Institute Annual Meeting is a first-class event that attracts valuation and real estate professionals from across the country and around the world.

Come to the Appraisal Institute’s biggest event of the year and:

  • Network with your peers and other professionals.
  • Earn state CE credit hours and CE credit points.
  • Choose from dozens of exceptional education sessions,
  • See exhibits of cutting-edge valuation products and services.
  • Attend the annual Appraisal Institute awards dinner.
  • Engage in fun activities throughout the Dallas area.

 

https://www.youtube.com/watch?v=v-5dSbGN8Wg

Is That All for the Mall?

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While some news reports have indicated that America’s shopping malls are on the decline, recent studies show that the vacancy rate for regional malls has decreased.nowleasing

Glimcher Realty reported same-center net operating income growth of 4.3 percent and re-leasing spreads of 17 percent and that retailers continue to line up for space in the company’s malls, despite media reports about the property type’s declining fortunes. According to the Cassidy Turley Retail forecast for 2014, vacancy rates at U.S. shopping malls stood at 4.2 percent at the end of the third quarter of 2013, which is the lowest vacancy rate since the onset of the Great Recession.

The International Council of Shopping Centers reports that retail real estate investment trusts are once again developing new projects, and retail center developer Regency Centers had seven projects valued at some $223.3 million in development during the second quarter of 2014.

[Read more…]

Appraisal Institute Honors 8 National Award Winners

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Attendees of the Appraisal Institute Annual Meeting’s closing general session on August 6 at 1:30 p.m. CDT (Salon A/B of the Governor’s Ballroom on the fourth floor) were enlightened byDotzour-Olasov
Mark G. Dotzour, Ph.D., chief economist and director of research, the Real Estate Center at Texas A&M University, who addressed, “The Economic Outlook for Real Estate Investors and Decision Makers” and Brian Olasov, managing director, McKenna Long & Aldridge LLP, talked about “A $19 Trillion Education: Are We Smarter Now than in 2008?”

Dotzour told the audience that people who appraise retail spaces are being impacted because new mall construction is down and “dead malls” with high vacancy rates has increased significantly. Olasov said in some ways, the Appraisal Institute being on the ground gives the organization intelligence people in Washington, DC, may not see. He added, “The Appraisal Institute should think more globally about big systemic issues and that would be a great value add and take the burden off individual appraisers.” [Read more…]

Live from AI Connect 2014: August 5

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Connect with Your Colleagues

Having built relationships around the country, many attendees have used AI Connect as their chance to reconnect with long-distance friends, colleagues and connections. View the directory of registered attendees online to help locate and reconnect with yours!

Exhibit Hall Abuzz 

With so many attendees identifying the networking opportunities as one of their favorite aspects of the 2014
AI-Connect-Exhibit-Hall Annual Meeting, it was never more apparent Tuesday than on the exhibit floor (Governor’s Ballroom, Salon C-D-E). The nearly 450 attendees made their way through the exhibit floor throughout the day, taking advantage of the chance to exchange ideas and experiences with other valuation professionals, as well as learn about new trends, tools and services from the various industry vendors and service providers at the more than 30 exhibits.

AI Hosts Cocktail Reception 

The Appraisal Institute hosted a reception Tuesday night on the exhibit floor (Governor’s Ballroom, Salon C-D-E). AI Connect attendees had the opportunity to network with their peers, and took advantage of their last chance to peruse the exhibits. [Read more…]

Live from AI Connect 2014: August 4

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“Last Man on the Moon” Dazzles Attendees

Former astronaut and retired U.S. Navy Captain Eugene A. “Gene” Cernan, keynote speaker Keynote-Eugene-Cernanat this year’s AI Connect, told attendees in the Governor’s Ballroom on Monday that what appraisers and astronauts have in common is professionalism. He told the packed room that “professionalism is more than a word, it’s a way of life.” Captain Cernan reflected on his two missions to the moon, and his distinction as the last man to set foot on the lunar surface. Attendees also heard from Texas Commissioner of Agriculture Todd Staples, a temporarily non-practicing Designated member of the Appraisal Institute who received his SRA designation in 1998. [Read more…]

Welcome to the 2014 Appraisal Institute Annual Meeting!

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Welcome to Austin, Texas, and AI Connect 2014! Check your email each morning while you’re at the Appraisal Institute Annual Meeting for highlights of the day’s activities and a recap of the previous day’s happenings.

Here are a few events to look forward to this week:

Opening General Session

You won’t want to miss today’s opening general session at 1:30 p.m. CDT in the Governor’s Ballroom, Salon A/B. This year’s keynote speaker is former Gemini and Apollo astronaut Eugene A. Cernan. He is the second American to walk in space and the last man to have left his footprints on the lunar surface. Captain Cernan spent 20 years as a naval aviator, including 13 years with NASA. [Read more…]

3 Ways Appraisers Can Help Buyers of Vacation Homes

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Vacation-home sales accounted for 13 percent of all transactions in 2013 — their highest market share since 2006 — according to the National Association of Realtors’ 2014 Investment and Vacation Home Buyers Survey. As growth in the equity market continues to benefit households, consumers are gaining the confidence to invest in second homes for recreational use.

When considering the purchase of a vacation home, buyers should enlist the help of a qualified residential real estate appraiser to help them evaluate the property’s investment potential.VacationHome

What is the location of the property worth? 

Buyers can do their due diligence by familiarizing themselves with the location of the recreational property to help them determine if they want to make the investment. Does the neighborhood feel safe? Is it currently well-kept and in close proximity to entertainment or attractions that are important to the buyers?

[Read more…]

AI Premieres Latest Review Designation Education

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AI Premieres Latest Review Designation Education

On July 14, AI premiered its Review Case Studies-General course, which is part of the organization’s Review Designation program. Participants will put into practice the concepts presented in Review Theory-General by applying the review process to three case studies that present challenges reviewers face every day. Participants will gain confidence in their review techniques by evaluating appraisal errors; developing and communicating opinions of completeness, accuracy, adequacy, relevance, reasonableness, appropriateness, credibility, and reasons for disagreement; and preparing written review reports.

The Review Theory-General and Review Theory-Residential courses also are available. Review Case Studies-Residential is scheduled to premiere in first quarter 2015.

Learn more about AI’s education requirements for designation.  [Read more…]

4 Questions to Ask During a Restaurant Valuation

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The National Restaurant Association expects sales for the United States’ 990,000 restaurants to top $683 billion in 2014, indicating a considerable need for appraisal experience in this specialty market.

Appraisers working in the restaurant sector should understand and correctly use accepted valuation methods and techniques to develop a credible opinion of value for a restaurant — such as income-based business valuation methods. But there are four questions every appraiser can ask at the outset of a restaurant valuation assignment.

What is the value of the restaurant’s physical assets?

The most straightforward part of a restaurant appraisal assignment is taking inventory of the physical assets of the business. The Appraisal of Real Estate, 14th Edition, published by the Appraisal Institute, defines tangible assets “as any personal or real property.” Examples of tangible assets in a restaurant include the building, land, kitchen equipment, furniture, cutlery, linen, cash registers and other physical items. Appraisers need to make a list of all of the physical assets and analyze them, or work with experts to have the items inspected, to determine the current value of the assets.  [Read more…]

Why Valuation Professionals Attend the Appraisal Institute Annual Meeting

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In the organization’s latest video, the Appraisal Institute asked Kyle Redfearn, MAI; Brenda J. Dohring Hicks, MAI; Terry R. Dunkin, MAI, SRA, SRPA; and Mark R. Linné, MAI, SRA, why they love to attend the Appraisal Institute Annual Meeting.

“I’ve met several people… I’ve had quite a few good networking opportunities and had a few services of mine be mentioned that people may need.”

            — Kyle Redfearn, MAI [Read more…]