In the organization’s latest video, the Appraisal Institute invited Robert “Bob” Dietrich, MAI, and Kyle Redfearn, MAI, to discuss the opportunities for appraisers in valuation for financial reporting, the challenges associated with VFR, how appraisers can reach out to potential VFR clients, and misconceptions about VFR.

AI: What opportunities exist for appraisers in VFR?

KR: Valuation for financial reporting is a source of business that is often overlooked by appraisers. Opportunities exist in purchase price allocations,impairment testing and capital lease testing. Purchase price allocation work is becoming commoditized, and appraisers need to think outside the box when it comes to larger portfolios. This is a new type of service for many appraisers, but there is definitely money to be made.

AI: What are the biggest challenges with VFR?

BD: There is a fear factor in this area, and appraisers can be intimidated — especially when it comes to using fresh start accounting. This discipline may seem highly specialized, but it really isn’t. However, VFR assignments could be difficult for one-person shops because this is a multi-area discipline. [Read more…]