Why be a member of a professional organization

[Dave Doering]

I believe that one of the reasons that the established appraisal organizations are having to charge the high dues is because of their relative exclusivity in membership. Most professions such as the CPAs, Doctors, Lawyers, Veterinarians, Professional Engineers, etc. have professional organizations that any and all who hold the requisite license are eligible to join. And, their organizations tend to represent their broad constituency rather than any one faction. In the case of the medical profession there are specialty boards that promote and establish criteria for advanced levels of training but all MDs are eligible to join the AMA. CPAs have the National Association of Certified Public Accountants, Veterinarians have the AVMA (American Veterinary Medical Association) which is open to all graduate veterinarians.

In my humble opinion, the AI, NAIFA, ASA and other appraisal groups all have made a contribution to the appraisal body of knowledge and within their financial capacities have served their members well. However, I believe that the time has come for an all inclusive appraisal organization that serves the interest of the appraisal profession as a whole and is open for membership to all licensed and certified appraisers. While the Institute and the NAIFA have attempted to open their ranks by having "associates", I do not believe that offering an apparent second class membership as an adjunct to their designated membership categories will ever be successful.

Despite the historical differences in appraisal doctrine and dogma, we are all in the same boat and are little by little being worn down by the various anti-appraiser forces in the marketplace. I believe the time has come to come together for the common good of this profession.

 

[Verne Hebert]

I have a few minutes to draft this and look forward to reading the replys in the morning. The licensing is all bull****. The associations give us some clout in Washington, albeit limited, if the associations are active. Membership is very, very, important.

Find an association that "fits". I too was an AI member, and prior to that a NAREA member. The last straw with AI was when I had a complaint filed against me by the local real estate association for not making value on a well documented report with heavily supported value estimate. AI said How long have you been working? Most of our members don't do residential work and if you didn't you wouldn't have this problem. AI still has a slight edge in clout in Washington. However as some of these older MAI die off this will change.

It cost me $8,000 but I sued the board and won and created some significant lasting changes here.

The local board does not mess with me any more.

There are good associations with good people with the pulse on activity.

 

[jtrotta]

VJ - what is MFLA :?: am unfamiliar with it;

the subject goes round & round, have been a member of most organizations and was really interested in AI at one time, started all the hoopla; took some clases and then reviewed an appraisal by one of the many SRA teachers, who swore nothing went out of his office unless he reviewed it. Well, the job I looked at was a piece and needless to say that in itself turned me off, so I dropped everything.

If it is to be well represented (someone said 2 different organizations spent mega bucks in Wash. & got no where) then perhaps The American Guild of Appraisers is where you want to spend your $175 of hard earned money. They definitely have clout and are herd in Washington, as they are part of the AFL/CIO and have mega bucks invested all over. If your NOT really serious stay where you are and keep complaining.

Good Luck in your choice

8)

 

[Paul Ness MAI]

Verne, I too am curious as to your designation, never heard of it. As for MAI's dieing off - I'm 42 and the average age is 48. In the last six months of 2001 there were 127 newly designated MAI's but I confess I don't know how many died during that time.

jrtrotta, I will not entertain membership in the appraisers' guild because I do not want any of my money going to the AFL/CIO, where it is used for non-appraisal related political agendas that do not match my own views.

 

[Neil (Texas)]

MFLA = Master Farm & Land Appraiser

National Assn. of Master Appraisers


Neil Schaeffer, IFAS

 

[bradellis]

Hi folks,

An interesting thread. I agree with some and disagree with others. Here is my take:

I joined my organization many years ago for a variety of reasons- professional recognition, camaraderie, searching for knowledge and expertise, networking, advice, and just plain help sometimes.

I have found all of that and more in my organization, and I know many many others in other organizations who found the same things. It all depends upon what you seek.

Some are "lone wolves" and will always remain that way. Others seek social interaction (it can get hard being alone). It is always up to the individual to seek to satisfy their own needs.

But, I'll tell you this. While holding a designation does not automatically guarantee a good appraisal, I have found over and over again that those who took/take the time to earn their designations TEND to provide a higher quality level, on average, of work. This comes from reading thousands of reports over my career.

America's largest mortgage lender has an internal review form that asks, at the bottom, if the reviewer is designated by the AI or NAIFA. Seems they, too, place some importance upon this factor. I'll repeat that this is not automatic. I know many fine appraisers who do not have designations; however, I know more who do.

When I need a field review done, I go to my organization members. They are the ones who get the work. My colleague searches within his organization. Why? Because we know who these folks are, that we will get honest and credible work, and we can believe them.

Now, we also have many non-designated folks on our approved list, as well, and we use them. But, it takes longer for us to develop a level of comfort with them.

The choice is always yours. To earn the IFA designation is not very hard. You do one expanded report (like a mini narrative, but without all the fluff) to demonstrate your command of the techniques- paired sales or regression for adjustments, full blown cost approach and basic income approach. Submit that with 4 other reports. Only a few hours work. The AI still requires the narrative as does the ASA. Not sure about others.

As to dues, we provide 2 free days of ed with our $400 yearly charge, so your CE is covered. So, if you belong, all that would be needed for you to consider this nearly a freebie is a couple of assignments coming your way each year as a result of your membership/designation. But, pick the org you like. All have some benefit depending upon your needs.

Brad Ellis, IFA, RAA

 

[Terrel L. Shields]

Ahh...back to the fee issue. Many professional societies are small; Amer. Association of Petroleum Geologists fer instance - how many petroleum geologists do you think are left in this country? More geologists in Russia and Arabia than here. AAPG put out a monthly bulletin, slick cover, professional papers peer reviewed. Plus they put out a monthly bulletin, articles of interest. They also have divisions for geologists who work the Environmental side of petroleum and a division for energy minerals (uranium and coal). These cost about $35/yr more and piggyback your regular membership. They put out quarterly reports. AAPG has a group ins. plan, etc. etc. And they don't have a captive audience of people who HAVE to take Cont. Ed. I simply contend they are better managed.

ALL the appraisal organizations were flush with money in the early 90's and they blew it, lobbying congress on issues they could not win, spending money like water, etc. Only one (AI) puts out a professional bulletin of quality. And all of them show their Realtor salesmen roots. Most articles read like PR for a new listing. Most articles are advocacy in a profession supposedly above advocacy.

Some try to justify their fees with "free" CE when much of that CE has some limitations and the "free" class may be 200 mi. away - more in areas with few members. It takes the entire state of Arkansas to scrap up enough AI members to have a bridge game. NW Arkansas NAIFA chapter folded from lack of interest but a NAR chapter is going quite well because we can afford it. I was mem. of Claremore NAIFA chapter and the last meeting I attended had 3 people plus a speaker who drove 80 miles at his own expense. I never recieved any notice of another meeting in the following 2 years so I quit.

For $125 a day I can get CE anywhere. The $400 annual fee at best is still $150 and you have to take the CE to do that. What if I don't like your CE? What if I find something else I do want to take? I do try to take classes that benefit me not merely fill a required CE.

The organizations should be swimming in cash, but they had run off far too many people with the second class citizenship "affliate" memberships and high fees. All members should be treated as such, voting and office holding rights. After all it is often new members who are motivated to serve offices, etc. The fees should not exceed $150/yr. with designated members paying an additional $150/yr or so.

One last point. I agree above with a remark by someone about the "high" quality reports touted by some that when carefully reviewed really are pretty common quality...if not errant.

I recently reviewed a "Self-Contained" Complete Appraisal Report that was 19-20± pages long plus 4-5 exhibits. One of the things it contained was an estimate in the Cost Approach of site improvements. It broke that down to septic, well, drive, landscaping (a typical thing) and then without any supporting evidence whatsoever, added $20,000 for 200 walnut trees in a fence row on the back side of the property. Appraisal? $160,000 Sold 2 months later? $100,000. [It was a repo]

99.9% of appraisers have no business appraising trees, and 100% ought to know when they don't have the competence to do so. By the way, the appraiser was also a member of the Okla. State Bar. Surely he could read USPAP as well as anyone else.

Ter

 

[Oregon Doug]

I have to agree with most of what I read in this thread when it comes to the professional organizations.

I started with AIREA in 1974 but resigned in protest at the first American Institute/Society merger attempt. I worked as a commercial appraiser without any designation whatsoever for many years. I switched to residential appraisal and re-joined the AI - I worked hard for my RM designation only to be awarded an SRA in '91. I ask myself just what the AI has done for me during each of the past 10 years or so as I wrote out my annual dues checks. Every year, the answer has been nothing - or less.

As a matter of fact, I have come to the conclusion that the AI stabbed me in the wallet with its unholy AIRD alliance and sellout with/to FNC/WAMU. Don't even talk about that little lease fiacso a few years ago back in Chicago - by "professional appraisers" no less!

OK, so I get the Appraisal Journal every so often. It's chock full of highly technical articles on everything except what a working appraiser could actually use.

My dues (I haven't yet paid them) are about a $1,000 - for a quarterly magazine without pictures! I think not. I think I'll save some money this year and subscribe to the National Geographic instead (it has pictures and is much more interesting).

Oregon Doug, ex SRA

 

[Verne Hebert]

This has been an interesting topic. I have enjoyed the comments although a thread seems to permeate the the discussion-AI. It seems they have managed to take some money from most of us over the years.

There are a number of other good organizations. And let's separate the two right now. There are associations and there are designations. With no associations there are no designations.

However the associations can offer more considerably more than just the designations. Designations are just that. Be proud the work required for a designation, but don't hid behind it. Every day is a new day-let your work be of model of your professionalism and technical expertise not the "stuff" after the commas. Enjoy the benefits of the associations that have merit for you.

 

[Paul Ness MAI]

I agree with Verne. You're only as good as your last appraisal, whether you're designated or not.

As far as associations versus designations, AI has provided me more than just an opportunity to earn three letters after my name. It helped me focus my career and fostered self-discipline when I was younger, provided me with appraisal education (both pre and post-designation) which is second to none, offered various resources to assist me in my work, along with a network of peers. And here's one not mentioned much in this era of "what's in it for me", it has provided me an opportunity to give back to my profession through personal involvement in leadership and training. I enjoy mentoring younger appraisers and bringing them along in positions of leadership within the chapter - they are the future of the profession (boy do I sound old, but I'm only 42 which is young in this profession).

Some keep mentioning fees, comparing them with other professions, and specifically the exorbitance of AI's membership dues. AI publishes their financial records every year and we can see where the money goes. I pay around $1,000 a year. Depending on your production level, that equates to only about two days' worth of work a year.