What do SRA and MAI stand for?

[Doug Smith SRA]

The traditional way to impress is with a solid resumé and cover letter, followed up by high quality work. Designations will always be meaningless to people ignorant of there meaning. You might be able to put you have a PhD from MIT on your resumé, but that would be meaningless to most of the world. (The average person in China would not even understand a word of what you said.) You can only impress people with things that matter to them. For example, a cook may make the world's finest meal out of a trout, but it will not impress me one bit; I don't eat fish.

You will never impress a client with designations and education, if the client only wants a report written quickly with an opinion that makes the deal work. Potential clients that want high quality appraisals written by appraisers who posses exceptional education and experience will educate themselves on the meaning of various designations. If you need to educate the client on a designations meaning, the designation doesn't matter with that client.

There have been many studies over the years about the income effect of having a designation. This is one: Income effect of SRA.

The information may be correct but the conclusions drawn from the data may very well be incorrect. Couch Potato points out the obvious discrepancy. If a person has equal qualifications and an equal amount of experience and education listed on their resume, why would they not make the same level of income? Some have concluded that it is because a person who has a designation is perceived to offer more and be worthy of greater fees. Couch aptly demolishes this argument pointing out that most designations are meaningless in the real world. So if it isn't due to knowledge and skills and only a small segment of the market is knowledgeable about designations, why do persons with a designation make more money?

The answer is obvious and that is that a person with a designation thinks of themselves as worthy of a higher level of assignments and worthy of more income. If a designated person thinks themselves as more worthy, they will pursue a different course that leads to greater income. Logically, you don't need a designation to know in your heart that you are so worthy and some proceed very well without a designation. It is a matter of self-confidence.

In October of last year I took the AI Substitute Demo Course for the AI SRA designation. I knew I was likely to write an article about the experience and so I interviewed many of the participants. Every person I interviewed said the same thing. They wanted the designation to set themselves from the clutter in the marketplace. In the class, however, I found something else was driving those in the group. Those seeking a designation only wanted to confirm they were better than anyone else but they already felt they were better.

In the Demo Substitute Course, students have to interact with fellow students since working out each problem is worked out in groups. The lecture part is only a small part of the learning experience. I learned more from working within my group. In the group, I found that my fellow students had a very high opinion of their abilities as appraisers. If a person in the group was not "getting it", these persons were ignored or told to go to the instructors for help. I have talked to some of my fellow students since the class. I have asked them the same thing. "Have you raised your fees since you came back." The answer has been the same. Somehow, something clicked when they took the class. They have all reported they are seeking better clients and holding firm if not raising their rates and most don't even have their designation yet.

The rate structure for residential appraising is collapsing. Those who will weather the storm are remaining confident in their abilities. It is human nature to want a report card no matter how confident one is about their abilities. Taking on the effort to become designated is one way confirm any doubt. Some persons do not need this confirmation. The bottom line is that attitude governs success. Our fathers and grandfathers read Napoleon Hill who sold many copies of "Think and Grow Rich." The lesson of that book still resounds today.

I don't want to take anything away from the learning experience. The Demo class was immensely informative and helpful in my every day practice. My advice is don't worry about how the designation is perceived in the marketplace. Use the experience to fully confirm your ability, knowledge and skills and use it as report card to give you confidence to seek out better assignments and ask for greater fees.

 

[hastalavista]

In the Demo Substitute Course, students have to interact with fellow students since working out each problem is worked out in groups. The lecture part is only a small part of the learning experience. I learned more from working within my group. In the group, I found that my fellow students had a very high opinion of their abilities as appraisers. If a person in the group was not "getting it", these persons were ignored or told to go to the instructors for help. I have talked to some of my fellow students since the class. I have asked them the same thing. "Have you raised your fees since you came back." The answer has been the same. Somehow, something clicked when they took the class. They have all reported they are seeking better clients and holding firm if not raising their rates and most don't even have their designation yet.

(my bold)

Doug-

I bolded the above part because I think that is a sad commentary and I also hope that it was unique (unfortunately for you but potentially fortunate for the rest of us) to the mix in your class.

I am taking the last of the AI income classes (Advanced Income Capitalization Applications, formerly called the 510 course I believe). I am the only residential appraiser in my class of 25-or-so. Most are there to qualify for their MAI designation- a few are there for the continuing education (I, on the other hand, haven't even done a commercial job!).
My experience in that class (as well as some of the other AI courses) is that the majority of students are more than willing to work with someone else (when we break out in groups) who is unsure about a particular concept or is having trouble "getting it". In this class, I'm able to keep up with most about the core-material because it is basically financial math- so sometimes I can even assist someone. However, when it comes to practical application, I have no experience, and many of my classmates are more than willing to take extra time (during a break or during the group sessions) and walk me through how the application works in the real-world.

I do agree with the point of your post, which is that those who hold themselves in a higher professional regard (due to competence and not hubris) are more likely to attract/gravitate to assignments that require that higher level of professional competence and concurrently a higher fee. :new_smile-l:

 

[Pamela Crowley (Florida)]

Denis,

You are not and do not have the typical personality of the typical appraiser.

(That's a big compliment.)

 

[hastalavista]

Denis,

You are not and do not have the typical personality of the typical appraiser.

(That's a big compliment.)

Thanks, Pam

(I now need to do a self-hubris check!! :laugh

 

[Sunny Tyner]

Wow!

Just wanted to give a big thank you to everyone for their input. I totally agree that your attitudes towards your work and professionalism will dictate the type of clients you will attract and retain.

As a trainee nearing certification, I am researching the ways to further my education as well as set myself apart from the pack. Joining the AI seems paramount, as well as being an actively involved member, and I will further my education whether I get the designation or not. It would just be nice to have a designation with an acronym that was easy to explain. :laugh:

Thank you again for your input and for educating me. I am working hard to learn what I need to be an awesome appraiser and this forum has provided me a great deal of info.

Sunny