Certified Residential vs Certified General

[Carnivore]

Get designated or do something else.

MAI or SRA. The easy stuff is going away and hard stuff clients generally want credentials.

Appraisers who don't commit basically have one foot out the door and just lazily badmouth credentials in hopes they can ride it out without having to upgrade their credentials or learn a new income source.

I think your right. One really important metric is compensation . On the residential side There is just to much competition,
It will take time for that to adjust downward. In NC the Real Estate Brokers have an inactive Status. It is easy for them to step away and then comeback if they want to because the fee is small , its like $40 per year. The NCAB does not. So you have to take all the CE and pay the license fee of apprx. $250 just to keep the door open if your job you took doesn't work out . Almost No one is going to do that. Right now in the Charlotte MSA we have a labor shortage. So if an appraiser quits they our not likely to return.
I just had a plumber come out to fix a bathroom fixture and he took two hours and charged me $1,000 dollars. It was not an easy fix, that is why I called him. Get this, he is busy 6 days a week. He takes Sunday off except for emergencies.

Right now we have a Commercial Pilot Shortage. If I was a little healthier I could go back into Commercial flying because my commercial pilots license does not expire.

I have not looked at cost in a while but anyone who can pass the FAA Pilot exam could go into that profession and make a lot of money. Way more than any appraiser.

Oh well I am just rambling

 

[Terrel L. Shields]

MAI or SRA.

The value of the SRA might be considered marginal. Specialist appraisers rarely need the same sort of designation that a commercial generalist might want like the MAI. For agri specialists then go for the ASFMRA designations or a commercial or non-real estate appraiser might want to go with the ASA. I consider both to be superior organizations to the AI.

But in rural areas finding a CG can be a real problem so a community bank, attorney, etc. might prefer someone semi-local who has a proven track record. Once you've proved yourself the alphabet soup designations are pretty meaningless. Sorry, but the MAI is not the equivalent of an accountant saying they are a CPA...just saying.

 

[Essexfenwick]

I think your right. One really important metric is compensation . On the residential side There is just to much competition,
It will take time for that to adjust downward. In NC the Real Estate Brokers have an inactive Status. It is easy for them to step away and then comeback if they want to because the fee is small , its like $40 per year. The NCAB does not. So you have to take all the CE and pay the license fee of apprx. $250 just to keep the door open if your job you took doesn't work out . Almost No one is going to do that. Right now in the Charlotte MSA we have a labor shortage. So if an appraiser quits they our not likely to return.
I just had a plumber come out to fix a bathroom fixture and he took two hours and charged me $1,000 dollars. It was not an easy fix, that is why I called him. Get this, he is busy 6 days a week. He takes Sunday off except for emergencies.

Right now we have a Commercial Pilot Shortage. If I was a little healthier I could go back into Commercial flying because my commercial pilots license does not expire.

I have not looked at cost in a while but anyone who can pass the FAA Pilot exam could go into that profession and make a lot of money. Way more than any appraiser.

Oh well I am just rambling

I get referrals from other designated folks in AI. Lawyers like the credentials as well. I'm gonna focus on private while everybody is immersed on the "dynamic database ecosystem" and establish market share.

 

[djd09]

Downtown businesses hit hard by property appraisals, Speaker Sexton calls for state review​

Downtown Nashville establishments are seeing property values jump by tens of millions.​

NASHVILLE, Tenn. (WSMV) - Property tax increases are hitting Davidson County businesses hard following the latest reappraisal process, with some downtown establishments facing tax bills that double their rent payments.

Metro Councilmember Jacob Kupin said he has spoken with multiple business owners on Broadway who are dealing with drastic increases in their property valuations.

“I’ve heard of people going up 300, 400, 500%,” Kupin said. “I’ve heard of one business where their tax bill is double what they’re paying their landlord in rent.”

Broadway businesses see valuations skyrocket​

Three prominent downtown Nashville venues show the scale of the increases when comparing this year’s appraisal with the last one in 2021:

Kid Rock’s Honky Tonk jumped from a $13 million appraisal in 2021 to $60 million this year, according to the Metro Property Assessor’s Office. Across the street, Ole Red increased from a $16 million valuation in 2021 to $67 million. Acme Feed and Seed saw its valuation rise from $9 million to $50 million.

“There’s a lot of different moving parts here, but it’s something that we really need to get right because it’s putting a lot of people’s economic security at risk,” Kupin said.

The councilmember and others worry that businesses unable to handle the increases may pass costs to consumers or close entirely, leaving the future of the downtown core uncertain.

“My hope is we can come up with a plan that will address this issue,” Kupin said.

Downtown businesses hit hard by property appraisals, Speaker Sexton calls for state review

Metro Councilmember Jacob Kupin said he has spoken with multiple business owners on Broadway who are dealing with drastic increases in their property valuations.

www.wsmv.com

just keep massaging the cap rate....

 

[Carnivore]

That's a good plan. It cost money to advertise, which you have to do on a regular basis. I used business cards. I handed them out to anybody and every body I met .they are dirt cheap.

 

[Carnivore]

In regards to those business valuations in my state business and even home owners can appeal at the board of equalization.

Property Tax Appeal Process | NCDOR

During the year of the reappraisal or any year of the reappraisal cycle, a taxpayer may appeal the appraised value of his property. The taxpayer may appeal any

www.ncdor.gov

What really sets off property owners is then the city and or the county Raise the Mil rate per hundred.

 

[George Hatch]

We could debate which courses should or should not be taken all day long, but no educational course will prepare an appraiser to complete an analysis of a multi-hospital complex. That comes only through competence beyond the norm, involving much more than some required courses or being a trainee by another CG lacking that level of expertise, yet the piece of paper says differently. In turn I’ve not seen a course that deals with the single manufactured home that was enclosed as part of a new log home on 45 acres with a guest house overlooking the Tennessee river viewing a flood way across the front either.

My point is the same. Who is competent to do either? The second of those examples shouldn’t be done by most CGs that I know, because they would be clueless how to even start. But they are a CG and they can proclaim they are able to do any if it. A CR might be considered lacking the piece of paper, yet is called to actually get it figured out because of experience and background in understanding those properties. There is no course making anybody competent for these things, yet we say a CG can do them and a CR can’t. Why? Competence should always rule the assignment. That’s what USPAP literally says.

Again - this no longer matters to me, but the profession isn’t growing and the pool of CGs is woefully shallow in numbers and competence in many aspects in our state.

For every weirdo property there are 5000 properties which are not weird, so that's not the argument you want to make. The argument you're trying to make is that CRs don't need any additional instruction, testing or experience to appraise properties which are currently beyond their instruction, demonstrated understanding of that instruction and scope of practice.

I have never once seen an unsupervised CR appraise a non-resd'l property the same way the CGs do who normally appraise such properties. Not once. I've seen a few who appropriated a CGs work and used that as a template but they always seem to get it wrong on something basic.

I started out as the equivalent of a CR (5 years experience appraising nothing but 1-4s) prior to licensing and I had a LOT to learn to qualify for my CG. I'm not a dumb guy and I had to really hustle even though I was working on such assignments under supervision at the time. So I have actually been there and done that and I know from personal experience what it takes to make that transition.

Half the people who took the Income courses with me never passed the course because - and ima take some hate for saying so - IRL not every appraiser has what it takes. Some do and some don't. And nobody has what it takes to just feel their way through these various appraisal problems on their own by instinct.

That's the starting point for the argument you are attempting to make. Not how many CGs are competent at every single appraisal problem under the sun. Which BTW is zero CGs. Nobody knows how to appraise everything.

 

[Dale Floyd]

Actually, I think I made my point pretty clearly and it appears you missed it.

I’ve never said a CR doesn’t need more instruction to do more. My point is that a CG is no different. There’s instruction and expertise needed to appraise some properties that needs much more than a CG class, yet the piece of paper says differently. If this comes down to a peeing match of education, many CGs got their license without a degree required when FIRREA passed. I personally know many CRs who dance circles around most CGs in education accomplishments. The go-to appraiser in Tennessee for decades involving large agricultural properties only held a license.

I was involved in issuing municipal bonds for cities, counties, and UDs all over Tennessee back in the day, so understanding values associated with nursing homes, assisted living facilities, schools, and capital improvements isn’t foreign to me. We also served as trustee for defaulted industrial bonds, so I’ve seen appraisals that are probably alien to most out here. Some were good and some were lacking. Certainly, competency “should” have disqualified many of those CGs. The steps needed to become competent for many of those assignments would have only come through some limited sources and could have been accomplished for any level of appraiser at that time - no degree was required for the CGs back then, yet the piece of paper dictated rather than competence.

I’ve found many CGs to be more fond of their license level than their expertise to be very honest. It’s a sacred cow. I’m sure you are an exception. Competency should always be the bottom line. That’s my view anyway.

 

[RCA]

I spent a week in Sevier County, Tennessee and once again ended up in the middle of a discussion about the Sneetches in this business with stars on their bellies versus those who don’t. (Kudos to Dr Seuss). There are CGs in Tennessee who jump up on a stump and preach that a CR must never do an appraisal of an AirBNB because of the complexity or commercial aspect that requires the advanced brain of a CG. The HBU of all residential properties in Sevier County (Pigeon Forge, Gatlinburg, etc) is likely AirBNB everywhere because the market is driven by tourism due to Dollywood and Gatlinburg proper, with all the resort amenities.

There’s 3-4 CGs in that county and 25-30 CRs. I know of CRs up there that dance circles around many CGs in ability and intelligence, and doing an appraisal of an AirBNB is no big deal for them because they know that industry inside and out. If they are able to complete standard income producing rentals, then why pick out the short terms as being outside their wheelhouse? He pointed to education and the law. He had 4 years of experience in the area, and one CR up there dwarfs him by decades of experience.

I’ve said this a hundred times. Since a big swath of CGs were brought in prior to degrees and proof of competency beyond the CRs, why do we have this star on the belly requirement? Shouldn’t competency always rule the day? I always thought appraisers should have one license, just like an attorney, with their competency and expertise being the driver of what they are able to appraise.

My argument was a funny one with that CG who debated me about this. He asked if I felt competent to do them, and I told him I wasn’t in an area like Sevierville and we don’t see that many in my coverage area. But I asked him if he was competent to do a barndo on 40 acres near the Tennessee River with a barn and a guest house, and he had never heard of such a thing of course. Competence and complexity changes from area to area.

I know there are CGs out here that will get bent out of shape in having this discussion, but the whole licensing process ought to be different in my view. Let competency rule, as it was intended in the first place. One license - various specialties.

Commercial can be extremely specialized. Sometimes, appraisers just gravitate towards certain specialties they find interesting - and in fact may have very little interest in doing anything else. Being specialized usually means more money for less work. "Generalists" often have to struggle for a number of years to become "specialists" in half a dozen or so property types. The complexities of appraisal are often not that visible.

Another way of putting this, is that in my book: "Certified General Appraiser" is not that meaningful - because it covers such a large range of appraiser types.

 

[George Hatch]

The whole point of licensing was to qualify appraisers to appraise for mortgage lending purposes. To meet THEIR need to demonstrate they were exercising some due diligence. They had to draw the limitations somewhere and regardless of where that line is there will always be complaints about exactly where and why.

As I say, your use of the weirdo properties as the example of having the license isn't everything goes without saying so I don't even know why you're saying it. I pass on certain assignments as being outside my personal competency on a regular basis.

We already have 2 basic licensing categories + competency requirements. If you want to reduce the number of licenses to 1 basic licensing category + competency requirements what is going to happen is it will eliminate probably half the current CRs straight off the top even though they are perfectly capable of servicing their more narrow and specialized niche of property types. Every CR would have to transition into the CG - including the requisite non-resd'l experience hours - even though many of them literally can't make it.

And BTW, I have never once met any appraiser who didn't think they were at least as good as everyone else so the ego comment isn't just limited to the CGs.