Opinions of Value

Your source for appraisal news and trends

VIDEO: Save the Date for Appraisal Institute’s 2016 Annual Conference!

by

Make sure to save the date for the Appraisal Institute’s 2016 Annual Conference that will be held July 25-27 in Charlotte, N.C.!

AI 2016 navigating valuation The Appraisal Institute Annual Conference is a first-class event that attracts valuation and real estate professionals from across the country and around the world.

Be a part of Appraisal Institute’s biggest event of the year:

  • Network with your peers
  • Earn state CE hours and Appraisal Institute CE points
  • Choose from dozens of exceptional education sessions
  • Visit vendors with cutting-edge valuation products and services
  • Honor colleagues at the annual Appraisal Institute awards dinner
  • Experience Charlotte

Watch Facebook, Twitter and LinkedIn for future updates on the Annual Conference.

 

5 Tips to Elevate A Company’s Social Media Outreach

by

Appraisers, like those in many other professions, have learned that social media is now a must-have for conducting business. Facebook, Twitter, LinkedIn and other platforms offer valuation professionals the opportunity to engage their target audiences, brand their companies and potentially develop reputations as experts.

laptopBeyond basic posting and linking, there are many ways social media can help increase the effectiveness of an organization’s online presence. Here are five simple ways appraisers can enhance their social media sites:

[Read more…]

Video: Why Attend the Appraisal Institute Annual Meeting?

by

In the Appraisal Institute’s latest video, four AI professionals share why they attended the Annual Meeting.

The four individuals featured in the video are:

  • Terry Bernhardt, SRA, AI-RRS, who said the Annual Meeting is a get-together with “several hundred of [his] closest friends.”
  • Sladjana Popovic, Candidate for Designation, who traveled from Serbia to attend the Annual Meeting, said it gives her a “feel” for the expanding valuation industry.
  • John Meyer, SRA, said the Annual Meeting educated him about what’s going on in the profession.
  • Rob Elliott, MAI, SRA, said the continuing education is “very beneficial.”

[Read more…]

Appraisal, Appraiser Fraud Down Significantly

by

Recent reports have shown that cases of appraisal fraud have dropped dramatically, but mortgage fraud is on the rise.

The quarterly report from the U.S. Department of the Treasury Financial Crimes Enforcement Network released in January showed good news for the valuation profession. It statedFraud_house that incidents of appraisal fraud plunged from 2013 to 2014, dropping from 7,641 cases in 2013 to 2,033 in 2014 [See Depository Institutions, Exhibit 5]. This was the sharpest percentage decrease of any other type of fraud tracked by FinCen. [Read more…]

Appraisers Anticipate Sustained Growth: AI Survey

by

According to the Appraisal Institute’s 2013 Real Estate Appraisal Outlook,appraisers expect continued growth in mortgage lending appraisals as the real estate market recovery progresses.

arrow_graph_upBecause this represents the primary type of valuation service for a vast majority of realestate appraisers, it should provide some encouragement – particularly to those new to the profession or looking for jobs. Commercial and residential appraisers were in agreement that mortgage lending appraisals present the largest opportunity for growth.

Following that, in order of potential, commercial appraisers see the top areas of growth over the next one to two years as land valuation, litigation valuation/forensic appraisal, real estate consulting (fee-based) and right-of-way/easements. Residential appraisers predict that review appraisal services, real estate owned/foreclosures/short sales, litigation valuation/forensic appraisal and land valuation will provide the most opportunity. [Read more…]

Recruiting the Next Generation of Real Estate Appraisers

by

With more than half of appraisers in the U.S. age 51-65 and nearing retirement, the aging of appraisers presents both a challenge and an opportunity for the valuation profession. Because nearly 54 percent of college graduates are unsure of next steps, college students represent a virtually untapped resource for the next generation of real estate appraisers.

graduate_2In 2011, Inc. Magazine named real estate appraisal as one of six “top performing industries,” due to the demand as well as the housing market’s recovery, stating that the appraisal profession should be the first to reap the benefits. It also noted revenue and employment growth of nearly 9 percent and 4 percent, respectively, and low barriers to entry.

Key growth markets could include working with accountants, financial analysts, investors and others on real estate portfolio management/analysis, purchase, lease and investment packaging. Additional areas of real estate valuation such as right of way, conservation easement, taxation issues and litigation support (expert witness) also could provide opportunities for professionals looking to get into the appraisal business. [Read more…]

Appraisal Institute Past President Discusses the Future of Valuation for Financial Reporting in Latest YouTube Video

by

Appraisal Institute Past President, Leslie Sellers, MAI, SRA, discusses the future of valuation for financial reporting. Watch the latest YouTube video.

If you have an “opinion of value,” please share your comments.

Article in The Appraisal Journal Says Accessory Dwelling Units May Have Higher Values when Using Income Approach

by

Residential properties with accessory dwelling units — such as in-law apartments or coach houses — may have higher value potential if the properties are valued for investment income using the income capitalization approach, according to an article published this week in The Appraisal Journal.

multifamily-1The Appraisal Journal is the quarterly technical and academic publication of the Appraisal Institute, the nation’s largest professional association of real estate appraisers. The materials presented in the publication represent the opinions and views of the authors and not necessarily those of the Appraisal Institute.

In the study, the authors test an income-based approach to valuing properties with ADUs. For 14 properties with ADUs in Portland, Ore., an income capitalization approach produced valuations that were significantly higher than actual sale prices, by 7.2 percent or 9.8 percent on average, depending on the formula used. ADUs also contributed on average 25 percent or 34 percent of each property’s appraised value, depending on the formula used. [Read more…]

Appraisal Institute Helps Appraisers Perform Evaluations for Lenders

by

The nation’s largest professional association of real estate appraisers published guidance today to help appraisers learn what evaluations are, when they are used and who can prepare them.

The Appraisal Institute’s “Guide Note 13: Performing Evaluations of Real Property Collateral for Lenders” addresses how appraisers should prepare an evaluation for a lender and comply with the Uniform Standards of Professional Appraisal Practice.

The Guide Note states, “Federally insured lending institutions in the United States are subject to regulations regarding real estate appraisals. For lending transactions involving real estate, a lender must obtain an appraisal from a state licensed or certified appraiser. There are 12 exemptions from this requirement. For three of these exemptions, in lieu of an appraisal by a licensed or certified appraiser the lender may obtain an evaluation.”home-costs

[Read more…]

Appraisal Institute Honors November Volunteers of Distinction

by

The Appraisal Institute has announced its “Volunteer of Distinction” honorees for November: Shannon Hansen, MAI, of Region II (Nebraska Chapter); Charles R. Mills, Jr., MAI, SRA, of Region V (Bluegrass Chapter); Robert J. Bovasso, Jr., MAI, of Region VI (Metro New Jersey Chapter); Joyce L. Riggs, MAI, of Region VII (Southern California Chapter); and Nicholas D. Pilz, SRA, of Region X (East Florida Chapter).

The Appraisal Institute’s member recognition program honors members for their volunteer service to the Appraisal Institute, to the real estate valuation profession and to their local communities. Each month, the Appraisal Institute recognizes one honoree in each region as a Volunteer of Distinction.

Region II consists of Colorado, Iowa, Kansas, Missouri, Nebraska, Oklahoma, South Dakota, Utah and Wyoming, as well as Manitoba and Saskatchewan, Canada. Region V consists of Indiana, Kentucky, North Carolina, Ohio, Virginia and West Virginia. Region VI consists of Delaware, Maryland, New Jersey, Pennsylvania and Washington, D.C. Region VII consists of Arizona, Hawaii, Southern California and Southern Nevada. Region X consists of Florida, Puerto Rico and the Virgin Islands. [Read more…]