Seeking input from current and past AI Members

[Paul Ness MAI]

George, I anticipated your dismissing those with dual designations. Why is the dual designee's SRA worth any less than yours?

AVM's will increasingly replace residential appraisals for financing. I don't think there is any denying that. AVM's will also have an increasing place in the commercial world. However, since risk is dispersed much more in residential portfolios than in commercial, I don't think it will be used to the same extent in commercial lending.

The growth of technology is a different but related topic from professional membership. I don't dispute the fact that the designation lost its luster in the 1990's after state certification "leveled the playing field". But for reasons stated in my previous lengthy post, I believe the SRA will become more valuable if one desires (or eventually needs) to diversify and get away from financing work.

Your posts beg the question...If you are so strongly opposed to the AI, why do you still retain your designation?

 

[George W Dodd]

Paul,

I thought you might ask that question. I retain my membership because I hope for something better in the future. Right now the AI needs a “kick in the pants” to get it moving in a direction that will be beneficial to all appraisers. They need to stop being so timid, it is time to put it all on the line in a fight for survival. A single designation for the industry that will encompass everyone in the appraisal business (it’s not a profession yet) would lay the foundation for a organization that would have the ability to set standards and professional practice. It is time for appraiser’s to be creating the rules and regulations and their enforcement, not the ‘users’ of the service (just look at the corporate corruption that is emerging as a result to the users setting the rules for accountants). I stay a member to be able to voice my concerns from the inside, even if they won’t listen, as it is unlikely that a non-member would have any influence at all.

You have danced around the ‘AVM’ issue in my posts. What is your position: Are they a value estimate in an of themselves; Or are they another tool useable only by a trained real estate professional? And, if just a tool then why has the AI failed to fight this battle.

I don’t begrudge anyone dual designations I just think it is pointless. I have never met an MAI/SRA that wasn’t an MAI first. The SRA/RM designation has always been looked down on by those members with the MAI (at least as long as I’ve been around, 1983). I don’t dislike MAI appraisers I just believe they are reluctant to ever consider residential appraisers as equals.

 

[Mike Garrett RAA]

Why did I know this would get really nasty????

As a former AI candidate I would like to say...."go for it!"

The educational courses are excellent. Yes you will travel, you will stay in hotels/motels but the experience is well worth it.

 

[David C. Johnson]

Mike,

Now, what in the world does your experience in strange hotels in the late 1800s have to do with the price of Geritol? (sp?).

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Recommended answer:

Galldangit! How in the H would I know what Geritol costs, Whippersnapper!! Young bucks these days!! Just because they don't know "Depends" is not a noun yet, you'd think they own the world!

Now, I remember back measuring my first log cabin -- had to walk twenty miles barefoot in the snow...

 

[Paul Ness MAI]

George, I agree with much of what you said regarding AI in the first paragraph of your last post, and I'm glad you're still in AI. If you want to promote change, get involved with leadership (maybe you already are). There is no question that AI has had a rough road since the merger, combined with the introduction of FIRREA and certification, it was not good timing. They definitely were inward-focused and reacted in many situations, but I believe there are signs of improvement with attempts to be more pro-active to the inevitable trends in the industry.

I'm not on the same page with you when it comes to a single designation or the umbrella organization. I think a single designation, with its likely lesser requirements, will have no value because of a dilution effect. If everybody is designated than nobody is designated if you know what I mean, kind of the same impact as certification.

Regarding your AVM question, I'm not sure what your point is other than trying to pin me down with semantics. An AVM is exactly what it is - a statistical analysis that concludes a value estimate applying multiple regression using a large and imperfect data set. If someone is willing to use the results, they must realize the method of analysis applied and the risks inherent in using its results. Its results can be abused and misinterpreted much in the same way as DCF. About 13-14 years ago when the proliferation of personal computers made DCF a more easily applied tool, many folks warned of its potential abuses, but now it is commonly used with more trust since its users are better educated and better understand its strengths and weaknesses. The same thing is happening with multiple regression. An AVM is obviously not a traditional USPAP compliant appraisal all by itself. Is that what you were looking for?

Yes, multiple regression is a valuable tool for appraisers. I use it on rare occasion. It is nothing new. When I was in college back in the 1970's, one of our assignments in my first real estate appraisal class was to create a regression model and experiment with different sets of variables. We used the college's main frame computer back in the days of card readers and I carried around a box of punch cards five inches thick. It took a whole semester to reach our conclusions. Now we all do it with the comfort of a personal computer. Excel has a regression template that tests each variable for importance in the time it takes to click the mouse.

I really take issue with the generalizations in your last paragraph...that MAI's look down on SRA's and don't consider them as equals. I have been involved with AIREA/AI since 1987. Since obtaining my designation in 1997 I have become more involved in my local chapter leadership, having served on the board every year since that time, as a member of the admissions committee, as president in 2000, and next year will serve as education chair. In all my AI exposure within my local chapter, at regional meetings, as well as national meetings in Chicago, I haven't seen it. I can't say there are no MAI's that feel this way, but it is far from the majority feeling of the numerous MAI's that I know. Now SRPA is another story. I'm glad to see there is work under foot to allow them to obtain the MAI again. Our chapter president last year was an SRPA and he regretfully didn't take the opportunity to convert to the MAI years ago, and feels a sense that his designation is a dinosaur since there are very few left. I personally have the utmost respect for SRPA's and SRA's and appreciate the discipline and sacrifice that went into their getting the designation. I always defer to the SRA's residential expertise.

 

[Carol]

Actually, there is no such thing as a "designation", only a level of membership. This is the reality and why the appraisal designation does not make us a professional. In a real profession, once earned, always earned. However, ours is only a level of membership which can only be maintained as long as paid for year in and year out. Resign, and see your hard earned "designation" disappear.

 

[Paul Ness MAI]

Boy, we're all getting into the semantics game today. You are absolutely right Carol. The MAI and SRA are "membership designations" similar to numerous "membership designations" found in other professions. The only type of "designation" or accomplishment (of any profession) that I know that can't ever be taken away is the academic degree. Maybe to become "true professionals" similar to others, we should then only be able to be certified to practice with some sort of college degree such as a "DRe" (Doctor of Real Estate) plus a passing grade on a board exam with difficulty commensurate with the bar exam. Now there's a thought! Hey, I'm all for tightening requirements to become a "professional" appraiser.

 

[Mike Garrett RAA]

Only walked three miles and if it snowed mom would pick us up. Dang it Johnson, ( does I have ta calls you Johnson?) love your sense of humor. Actually my wife and I love staying in old old hotels like the St Nicholas in Cripple Creek, Colorado.

Paul, you hang in there....you worked hard for your designations and that should command a certain level of respect that is often lacking in this forum. I refer to an MAI here in town all the time and he returns the favor even though I am not an Institute member any longer. I had to giggle a bit when he called me for recommendations on digital cameras. Seems he has been using 35mm film all this time.

 

[Restrain]

Before licensing, the SRA, RM, etc was a NECESSITY to get any amount of work from major lenders. It showed that you knew your stuff. Now, they can't ask you for your designation. I would go for the NAIFA designation as opposed to the Instutute. I do not get any additional work because I am a SRA. I do get extra work because I am a General Certified Appraiser as opposed to a licensed or residential certified appraiser.

The Institute tends to work WITH Fannie Mae and agrees with its policies. That puts the AI in direct opposition with the residential appraiser. As long as they take that stand, I cannot say that it is a good idea to get an SRA. I would note that they have LOST a significant amount of the SRA members as they still refuse to listen to the residential members.

 

[bradellis]

rstrahan,

I think you make very good points.

While I am no longer a member of the AI, they still do have my respect. it is true that the residential members seem to have been left out in the cold a bit, but frankly, I am seeing a change in that.

Just like all of the organizations, we welcome new members. Whatever changes that occur, I will continue to believe that designations matter to the client. They do to me and to my employer- at least as one consideration. So, I encourage all to consider one of these fine organizations.

It is an investment in your career. I have less than $10K invested in dues over 20 years. I promise that it has paid off. But then, some are just not joiners, and that is OK. You get out of things what you put into them- just like about everything else in life.

Brad Ellis, IFA, RAA