Appraisal Institute Past President Jim Amorin, MAI, SRA, discusses the importance of designation in AI’s latest YouTube video.
Given the number of bad loans on their books due to foreclosures, it’s hard to blame lenders if they are more cautious in the current economic environment. Appraisers, however, are performing the same thorough research and thoughtful analysis they always have in order to help lenders make wise lending decisions.
In today’s challenging real estate market, choosing the right appraiser is vitally important for both the lender and the consumer, and working with a Designated member of the Appraisal Institute has many advantages. Appraisers need to provide credible, reliable opinions of value, and that requires education, ethics and experience.
Real estate appraisers know how challenging it can be to differentiate themselves from the competition. But appraisers who have received the MAI and/or SRA designation from the Appraisal Institute have found the best way to achieve that goal. [Read more…]
Buying or selling a home in today’s housing market can be challenging, but the Appraisal Institute has offered helpful tips to let consumers know how to protect themselves and how to avoid frustration during the process.
Appraisals are a key component of real estate transactions, and consumers can help themselves by following these recommendations from the Appraisal Institute:
- Understand the role of appraisals.
- Make sure the lender hires a qualified appraiser (such as a Designated member of the Appraisal Institute).
- Accompany the appraiser during the inspection of the property if possible.
- Request a copy of the appraisal report from the lender.
- Examine the appraisal report and ask questions.
- Appeal the appraisal if appropriate.
- Ask the lender to order a second appraisal by a qualified and designated appraiser.
- File legitimate complaints with appropriate state board or professional appraisal organizations. [Read more…]
Convenience stores represent a complex and fascinating retail channel that has responded to the economic challenges of the last decade by embracing new ideas, according to a new book by the nation’s largest professional association of real estate appraisers.
The second edition of “Convenience Stores and Retail Fuel Properties: Essential Appraisal Issues,” published this week by the Appraisal Institute, is intended to help appraisers of convenience stores keep up with these changes and understand how real estate value is created and estimated in the industry.
This book should prove to be a valuable reference not only for real estate appraisers, but also for eminent domain attorneys, convenience store operators and corporate managers. [Read more…]
The nation’s largest professional association of real estate appraisers published guidance this week to help appraisers know when and how to use distressed sales, such as foreclosures, as comparable sales. Such knowledge is particularly crucial in the current market where distressed sales are common, creating complex valuation challenges.
The Appraisal Institute noted that appraisers often use comparable sales (or “comps”) to help develop an opinion of value. But in today’s distressed real estate market, many potential comparable sales represent foreclosed properties. Some owners have complained their home’s values have fallen because appraisers have used such sales as comps.
According to the Appraisal Institute, qualified and competent appraisers with local market knowledge are capable of using their experience and education to determine when – and how – to use distressed sales as comparables. These appraisers know what adjustments to make, if any, when using distressed sales as comparables, for such methods are taught in basic coursework and updated seminar materials available to professional appraisers.
The Appraisal Institute’s Guide Note says: “A declining market will likely exhibit very little sales activity. When the sales comparison approach is necessary, but there are virtually no current sales in the market area to analyze as comps, the appraiser must: 1. Expand the geographic area for comp search, then adjust for location as appropriate, and/or 2. Use less recent sales, then adjust for market conditions as appropriate.”
Designated members of the Appraisal Institute – such as those who have earned the MAI (commercial/general) or SRA (residential) designation – are among the appraisers capable of properly performing difficult assignments such as those found in today’s challenging real estate market. They have achieved levels of education, experience, standards, ethics and peer review above those of licensed or state certified appraisers.
Click here to download the Appraisal Institute’s six-page pdf of “Guide Note 11: Comparable Selection in a Declining Market.”
If you have an “opinion of value,” please share your comments.
The Appraisal Institute has announced its “Volunteer of Distinction” honorees for January: Iverson C. Grove, MAI, SRA, of Region V (Northern Indiana/Southwest Michigan Chapter); Orell C. Anderson, MAI, of Region VII (Southern California Chapter); and Roman Cherwonogrodzky, SRA, of Region VIII (Houston Chapter).
Although the housing market is beginning to show some signs of improvement, many challenges still lie ahead for organizations that serve real estate professionals. During my presidency, the Appraisal Institute’s focus will be on enhancing the knowledge and professionalism of our members and guiding AI on the path toward becoming a professional society rather than a professional association.
Following extensive deliberation and careful consideration of member feedback, the Appraisal Institute Board of Directors voted Dec. 13 to approve the proposed Candidate for Designation program, effective Jan. 1, 2013.
The Board of Directors in 2010 approved a new strategic vision that will transition the organization from a professional association to a professional society by 2016. The Board’s action will begin that transformation.
The Appraisal Institute announced its “Volunteer of Distinction” honorees for December: Clifford Cryer, MAI, SRA, of Region II (Colorado Chapter); Carroll L. “Lew” Watson, SRA, of Region IX (Alabama Chapter); and Michael Slade, MAI, SRA, of Region X (South 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, plus Manitoba and Saskatchewan, Canada. Region IX consists of Alabama, Arkansas, Georgia, Louisiana, Mississippi, South Carolina and Tennessee. Region X consists of Florida, Puerto Rico and the Virgin Islands. [Read more…]
The Appraisal Institute commends the National Association of Homebuilders for creating guidelines to foster increased cooperation and information sharing among professionals that play a key role in the home buying process.