Oh My!: The (Almost) Naked Truth - Appraisal Institute Finances

[RCA]

"Dear Appraisal Institute Members,
As a long-standing member of the Appraisal Institute, I feel compelled to share my analysis of our organization's performance data and express concerns about our current trajectory. This analysis is driven by my commitment to our organization's long-term sustainability and the belief that informed members make better decisions about our collective future. Based on comprehensive data analysis of publicly available information, several trends warrant our immediate attention: Membership and Financial Trends:
- Our membership has declined from approximately 24,000 to 16,000 members, a 33% reduction
- Membership dues constitute roughly 60% of our revenue stream
- Operating expenses have remained relatively constant despite declining membership
- Current projections indicate potential operating deficits by 2027-2028 without intervention"

Those attached charts tell a story, at least suggest one. This one asks: What the hell is going on:



And this one shows current and projected losses:

 

[RCA]

M

"Dear Appraisal Institute Members,
As a long-standing member of the Appraisal Institute, I feel compelled to share my analysis of our organization's performance data and express concerns about our current trajectory. This analysis is driven by my commitment to our organization's long-term sustainability and the belief that informed members make better decisions about our collective future. Based on comprehensive data analysis of publicly available information, several trends warrant our immediate attention: Membership and Financial Trends:
- Our membership has declined from approximately 24,000 to 16,000 members, a 33% reduction
- Membership dues constitute roughly 60% of our revenue stream
- Operating expenses have remained relatively constant despite declining membership
- Current projections indicate potential operating deficits by 2027-2028 without intervention"

Those attached charts tell a story, at least suggest one. This one asks: What the hell is going on:

View attachment 96905

And this one shows current and projected losses:

View attachment 96906

The number suggest that the AI is in no position to do the job of updating their education for residential appraisal. The AI and McKissock course costs are already somewhat prohibitive. There are far cheaper alternatives.

I don't believe they can do what is required for the future - too much baggage. They will survive for commercial. Another organization may be created for residential - but geared towards advanced appraisal with R and statistics.

 

[glenn walker]

Their simply dying by age attrition. What's the average age of dues paying MAI ? I'm guessing 60 to 80 years old. Kinda like the Elks Clubs or Knights of Columbus a dying legacy as young people not joining in many years. The AI at best has 60 months before it may have to shed its education and simply become an appraisers club for monthly meet ups and a yearly jamboree.

 

[RCA]

Their simply dying by age attrition. What's the average age of dues paying MAI ? I'm guessing 60 to 80 years old. Kinda like the Elks Clubs or Knights of Columbus a dying legacy as young people not joining in many years. The AI at best has 60 months before it may have to shed its education and simply become an appraisers club for monthly meet ups and a yearly jamboree.

It is not that bad off. Each member probably pays on average $750/year. Take that times the membership. Add in the income from courses, conferences and sale of publications. So, they are likely to have only a slowly dying income stream and can keep going for quite some time - IF they cut costs. And that is baggage, as far as I am concerned. But, the reality is they can cut costs and will have to do so. They could also try to increase fees, but that would be risky, to say the least.

 

[Joe Flacco]

I don't know how she can write that "operating costs have remained constant" while the charts clearly show operating costs increasing. That is how stupid they think their members are.

 

[George Hatch]

Their house, their finances, their priorities, their rules, their business,. And none of mine.

 

[Fernando]

In beginning of my career, I would go to AI courses and conferences. I was even a member.
Throughout the years, AI is less relevant to me. AI has not really supported the residential appraisers and is showing in declining members.
I still like the conferences and meet fellow appraisers but the cost is too high for the value.
Use to be in nicer hotel for meetings but now in cheaper venues.

 

[The Bob]

The first and only meeting of the Society of Real Estate Appraiser's I ever attended (I had just joined) was to announce the merger with the AI (Which was part of the NAR at the time). I often wonder if it would have been better for the residential side if we still had 2 organizations. One for commercial, one for residential.

 

[glenn walker]

The question is why does anyone pay them dues at all....lol

 

[Tim Hicks (Texas)]

My question is "who cares?"