AQB Second Exposure Draft - Proposed Changes to Real Property Appraiser Qualification Criteria

[DWiley]

Yes, but also insane to expect the mentor to actually lose money.

Again, that is a mentor issue. How many do you know who have set down and created an actual business plan that addresses how to grow their business by adding new appraisers? Most I know have just hired someone without a real plan. Real businesses (at least successful ones) do not operate that way.

 

[Terrel L. Shields]

hat is a mentor issue.

A lot of difference in creating a "business" in a target rich environment like Nashville. But building a business depends upon the client base and where shortage exist. I built my business with what was available. And try to find any help appraising mineral rights. Or anyone who wants to walk into a smelly chicken barn. Even my CG trainee, technically very competent, was not comfortable with some assignments even when I was going to be doing much of the work. I remember him balking at working with a farm that had a wildlife conservation easement on the flood plain portion of the farm held by the state G & F Comm. Wanted no part of it, so I did it myself.

 

[Zoe]

Again, that is a mentor issue. How many do you know who have set down and created an actual business plan that addresses how to grow their business by adding new appraisers? Most I know have just hired someone without a real plan. Real businesses (at least successful ones) do not operate that way.

I can't remember how you went out of private practice. Was it your business plan?

I can't remember exactly.

 

[DWiley]

A lot of difference in creating a "business" in a target rich environment like Nashville. But building a business depends upon the client base and where shortage exist. I built my business with what was available. And try to find any help appraising mineral rights. Or anyone who wants to walk into a smelly chicken barn. Even my CG trainee, technically very competent, was not comfortable with some assignments even when I was going to be doing much of the work. I remember him balking at working with a farm that had a wildlife conservation easement on the flood plain portion of the farm held by the state G & F Comm. Wanted no part of it, so I did it myself.

It might be easier in Nashville, but the fundamentals are the same. To be frank, most appraisers I have interacted with behave more like they are managing a job rather than running a business.

 

[Zoe]

Nashville is pretty homogenous market on single family. Surprised you left private practice with good business.

I can rank major cities in Tennessee from homogeneous to heterogeneous.

Knoxville probably 1 homogeneous

Nashville 2

Jackson 3

Memphis dead last.

Get into rural, different rankings.

 

[Zoe]

Again, that is a mentor issue. How many do you know who have set down and created an actual business plan that addresses how to grow their business by adding new appraisers? Most I know have just hired someone without a real plan. Real businesses (at least successful ones) do not operate that way.

Why did you leave private practice?

Why is always the hardest question?

 

[Zoe]

Bad business plan? Losing money? New love? Why?

I can speculate but I could be wrong on your business plan leaving private practice

 

[CGinMN]

Why are they loosening the qualifications standards when there isn’t a shortage of appraisers and we are on the precipice of a technological revolution that will make everyone more productive? Meanwhile how is PAREA on the residential side going, have they published any good research on this?

AQB is always like a decade behind the ball.

 

[Ricky LaFleur]

It might be easier in Nashville, but the fundamentals are the same. To be frank, most appraisers I have interacted with behave more like they are managing a job rather than running a business.

I'm a little surprised that you favored the mentoring model. In your honest opinion, do you believe PAREA will produce the same level (or sufficient level) of competency in CG trainees as a good mentor(s)?

And to your second statement, it is unfortunate, but when appraisers don't see themselves outside of form fillers, it would only make sense that they don't view the profession as a business/professional office.

 

[Terrel L. Shields]

ut when appraisers don't see themselves outside of form fillers, it would only make sense that they don't view the profession as a business/professional office.

When being dictated by the regulators, FNMA, and AMCs, how does the independent appraiser really sound credible asserting they are 'running' a business? They are managing the dictates of those who tell them how to work. Only a few of us actually get to run our companies, write our reports the way we want within the bank laws.

I finished my last report of my career last night. 4 more days and I have no license. And I used a couple of methods valuing it (a mineral right) that probably no one here has ever applied. Hoskold's Premise, a sinking fund method, and value in place a hybrid income and sales approach. Every regulator will not accept an income approach even when demanding a rent survey. Funny about that.

Well, 85.5 more hours, none of it will matter to me.