Guest post by Carol Rockman, VP and Founder of http://www.nvs.coop/
2010 and a new decade is about to begin. Upon being asked to write the
first Niche Appraiser column I was delighted to learn that this venue would
become a regular part of the magazine’s monthly features. Yet I felt challenged
with presenting a singular topic of interest that has not been belabored,
agonized over, hashed and rehashed ad infinitum.
One of the most notorious topics that dominate financial sector discussions
has been the Home Valuation Code of Conduct (HVCC) which is now a living legacy
rife with ramifications and not expected to be removed from the lending business
model.
Lenders, investors and government agencies involved in this seismic shift
are still trying to figure out the best alternatives to sort through the
chaos. Even the US Congress is befuddled.
Many appraisers are stunned and disenchanted about the future of their
businesses as the industry changes faster than we can assimilate relative future
value of the new bumper crop regulations.
There is reason for appraisers and users of appraisals to be optimistic
about appraisal issues during 2010. In taking the longer view of the
appraisal profession and looking back over the last 100 years, one fact becomes
apparent. When times are good, appraisers and users of appraisals tend to
focus on the business of doing business. They focus on productivity within
their respective functions, be it appraising or the various businesses that
commonly use appraisals such as mortgage lending, right of way work, litigation,
etc.
It is when times are bad that the appraisal profession and the users of
appraisals take the time to step back and re-examine the appraisal process and
issues involving appraiser performance so as to improve the quality and utility
of the appraisals being used in the marketplace.
It is during the aftermath of each of the economic busts that comprise the
long term trends that the appraisal profession has identified and incorporated
more stringent measures of professional conduct and practice along with more
sophisticated appraisal methodology and applications. Today's appraiser has
many more tools and a wider degree of access to relevant data to analyze that
data than ever before. Generally speaking, each of those advances has occurred
during an economic bust, not during a boom. Looking forward to 2010, we can
expect more advances.
The appraisal profession has long acknowledged the principle of change as
being one of the fundamental influences in the real estate markets, which
themselves are dynamic and ever changing. Appraisers will recognize that a
market for appraisal services that widens to include more types of "appraisals"
for more types of uses, means that there will be more business opportunities for
the average appraiser. When times are lean, an openness to the pooling of
resources, economics of scope, expanded affiliations and new partnerships are
the keynotes that not only engender innovation, they are crucial to
survival.
Considering that this column will more often than not speak to the
collective, I thought to seek some sage perspectives relative to past real
estate cycles. While it is true that we will be working under unprecedented
economic conditions, struggling with what seems extraordinary to us now, such
change will fast become the ordinary.
The consensus offered herein is from forward looking veterans I queried.
Those who can most definitely see an unlimited future:
“We are at a time of tremendous opportunity to participate in what the
appraisal industry looks like moving forward. With volatility in our industry
CHANGE is the rule of the day and we can be that change or allow others to write
the rules for us. If you were your customer what would you want? Are you
meeting or exceeding their expectations? Giving them outstanding service? We
are a "service" business. Providing outstanding service and well written,
researched and communicated reports is imperative to remain relevant. Networked
communities of appraisers working toward a common goal can make a difference.
Carpie Diem! Let's seize this opportunity to be the change we want to
see! Cynthia Sulamo, Certified Residential Appraiser,
CA
“FHA implemented a law that proscribed the use of licensed appraisers,
allowing only certified appraisers to be on their roster of approved appraisers.
The good news for the experienced appraisers remaining is that they will benefit
from that tremendous shrinkage bringing supply back into balance with
demand.” Randolph Kinney, Cert. Residential
Appraiser, CA
“I have a 2010 New Years Eve Resolution for the appraisal
profession:
“Shake it off and step up”. I often feel like I have fallen down the
same hole as Alice in Wonderland. I agree that things are more than a little
skewed in the world of the appraiser. However, I continue to say that the little
guy (or gal, just a figure of speech) should only worry about what they can
change, and not worry about what they cannot change.” David A. Braun, MAI,
SRA, TN
Ending on a top note, I would like to thank Niche Report for providing
Appraisers a medium to contribute their ideas and opinions within the framework
of a broader based audience.
AUTHOR: Carol
Rockman, VP and Founder of www.nvs.coop has
been involved in the Real Estate industry since 1978 and Appraising since
1982. National Valuation Service is a
company that provides appraisal management services
in 50 states; an organizational member of the NCBA in
Washington, DC - utilizing the Cooperative business model principles; The
Cooperative offers reliable valuation solutions to
satisfy the Home Valuation Code of Conduct (HVCC) and FHA compliance to
Mortgage Professionals, Lenders, CPA’s, Attorneys, Credit Unions.
Carol can be reached at 786-581-9171 or [email protected]
Article reprinted with permission of the author -
Original Source: The Niche Report
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