Commercial Appraisal Reporting for Data Exchange

[Pamela Crowley (Florida)]

http://todaysfacilitymanager.com/facilityblog08/2008/06/first-digital-commercial-appraisal.html

First Digital Commercial Appraisal Reporting Standard for Interoperable Data Exchange

“The purpose of these demonstrations is to share with these influential IT executives the reason we invested our time, knowledge, and financial funding to create this standard,” explains Matt Marschall MAI, ARA, MRICS, Managing Director, National Practice Leader Agribusiness Valuation Services - Capital Markets Group for Cushman & Wakefield. “We understood as we embarked on this project appraisers, lenders, and other industry stakeholders using this standard would experience very significant benefits in operating costs, access time to quality information, and for the first time, real consistency and transparency in the data we rely on,” he concluded. Marschall has served as the Chairman of OSCRE’s Appraisal Reporting Standard working group.

 

[Kali the Boston Terrier]

I guess I just have to laugh at the thought of standardizing the commercial appraisal report. I swear every other commercial report I read I come back with the same feeling...no two snowflakes are the same. For larger firms like CBRE, C&W, IRR (and smaller firms for that matter)...the design, content and style of their report is as important as their logo or any other type of branding. To think that a small group of appraisal users are going to somehow tell the vast majority how to write our reports is somehwat laughable. Especially considering mortgage and finance work make up such a small part of most commercial appraisers stream of business.

Out of the last 10 assignments I have done, only 1 was for financing purposes the other 9 were for estate, tax appeal, conservation easement, etc. So I have one user that says it has to be in this standard, so that means I am going to modify my reports for them...which I might add is the lowest paying group out of the bunch...yeah right.

 

[Pamela Crowley (Florida)]

I guess I just have to laugh at the thought of standardizing the commercial appraisal report. I swear every other commercial report I read I come back with the same feeling...no two snowflakes are the same. For larger firms like CBRE, C&W, IRR (and smaller firms for that matter)...the design, content and style of their report is as important as their logo or any other type of branding. To think that a small group of appraisal users are going to somehow tell the vast majority how to write our reports is somehwat laughable. Especially considering mortgage and finance work make up such a small part of most commercial appraisers stream of business.

Out of the last 10 assignments I have done, only 1 was for financing purposes the other 9 were for estate, tax appeal, conservation easement, etc. So I have one user that says it has to be in this standard, so that means I am going to modify my reports for them...which I might add is the lowest paying group out of the bunch...yeah right.

Sounds like most residential appraisers 10 years ago.

 

[Mountain Man]

Exactly my thought Brian... they can go pound sand.

 

[George Hatch]

I dunno. It doesn't look to me like they're talking about a uniform appraisal report format. It looks more like a format for a salient conclusions-type summary that appraisers could incorporate into their reports.

 

[PropertyEconomics]

It looks to me like it is a summary for comparable commercial data which can be accessed across the country. I have been involved in several of these projects over the years, and find that it only works as well as the members providing the data. While residential people may believe that commercial appraisal is going to go the same as the residential side has, I dont believe this to be true. The participants are much more sophisticated than the typical home purchaser, they are typically much more loyal to their appraisers (as are the lenders) and the properties much more complex on a local level so as to make such a system only a dream.
Perhaps I am naive but I dont think a national system for commercial will ever be successful. The rank and file of the "enlightened" will simply not allow it to happen.
Time will tell.

 

[Kali the Boston Terrier]

Sounds like most residential appraisers 10 years ago.

The difference between residential and commercial appraisers...10 years ago residential appraisers already had a standard set of forms used for just about every assignment...lending or not. 20 years ago before standard forms is about the equivalent to where commercial appraisers are now. The other issue is that the vast majority of residential appraiser work will always be from lending related work...making it much easier to sneak up them with data mining and "standards". In commercial most of us do very little lending work, as a result were not as vunerable to that kind of pressure.

Another issue is that commercial appraisers by and large are not slitting each other throats for work. There is a shortage of CGs in the world and an even smaller pool of MAIs, although price competition still happens its not the slash and burn mentality that permeates residential. That shortage and high demand makes it very unlikely that any of us will feel compelled to standardize...anything.

On a personal note I would love to see some standard from the commercial brokerage houses that might lead to better quality comparable and lease data. But just like appraisers that's even larger group of cowboys that will not be told they have to standardize.

 

[Michigan CG]

Standardize reports, great idea, as long as they use MY pattern, cause I'm not changing.