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Monday, July 22: 3:30 pm - 5:00 pm
Session Title: Diminution Valuation Assignments Enhance the Importance of Highest and Best Use
Session Abstract: Valuing real property diminution presents difficult challenges. Each situation is unique, and rarely are there truly comparable properties that have transferred in the marketplace. Typically, the “before and after method” is utilized, with the difference between the two representing the opinion of value diminution. In these instances, a higher level of expertise is required in the analysis of highest and best use for credible assignment results. This session will focus on key factors to consider in market analysis and highest and best use for these unique assignments. Case studies will be presented illustrating how highest and best use can change due to altering the physical or legal attributes of the real property or the real estate. Emphasis will be placed on the appropriate level of market analysis needed to develop a credible highest and best use in both the before and after scenarios. Market derived indicators of demand will be presented to determine feasibility for reasonably probable potential uses. Topics include conservation easements, title defects, partial property acquisitions and other diminution value situations.
Main Presenter: Ben Sellers, MAI, Sellers & Associates, Associate
Co-Presenter: Scott Robinson, MAI, SRA, AI-GRS, AI-RRS, Robinson Associates, Owner/Partner
Session Title: Federal Property Valuation - Why Do We Need Appraisers?
Session Abstract: Chief Appraisers representing GSA, Department of the Interior, Department of State and Naval Facilities Command will discuss appraisal challenges we face. Addressing our various program needs, we'll cover why we hire appraisers, and what's expected when we do. Federal agencies are unique clients, presenting unique appraisal challenges. With all the valuation models and data out there, why do we still need and hire appraisers? How can you ensure that you are up to the challenge? We'll talk about these issues and more as we discuss valuation of Federal property.
Main Presenter: Nicholas Hufford, MAI, CAE, US General Services Administration, Chief Appraiser
Co-Presenter: Wayne Nygard, MAI, US Department of State, Chief Appraiser
Co-Presenter: Timothy Hansen, RPRA, US Department of the Interior, Chief Appraiser
Co-Presenter: Trevor Chance Hubbard, MAI, SRA, AI-GRS, Department of Defense, Senior Appraiser
Session Title: Freddie Mac's Duty to Serve Initiatives - Impacts and Challenges for Appraisers
Session Abstract: The presentation will outline the impacts and challenges for appraisers presented by Freddie Mac's Duty to serve initiatives including Next generation manufactured homes, sweat equity loans, energy and water efficiency, and rural housing.
Main Presenter: R. Scott Hartman, SRA, Freddie Mac, Subject Matter Expert
Co-Presenter: Scott Reuter, Freddie Mac, Chief Appraiser - Director of Valuation
Co-Presenter: Simone Beaty, Freddie Mac, Director, Affordable Lending Product Development
Session Title: Office Security: One Click Away From Catastrophe
Session Abstract: In keeping with the conference’s theme, Climb Even Higher, this session will describe the security threats, risks, and protections for a typical appraisal firm. The presenter will not only provide a clear understanding of the modern threat landscape, but will also provide concrete, actionable steps to increase security and reduce risk. The session is especially relevant for company executives, managers, and high-performance appraisers. Participants will learn: -The methods hackers use to compromise and exploit companies -The consequences of a security breach -How to protect the company premises -How to protect company employees -How to protect company infrastructure -How to make decisions that improve company security
Main Presenter: Mark Davis, realquantum, CEO
Session Title: When Do You Need to Involve a Business Appraiser?
Session Abstract: Some properties are key assets in the operation of a business and their appraisal may be considered to be a complex real property going concern assignment. These types of properties cannot usually be appraised using an improved property sales comparison approach since there are typically major differences between the Subject and the sales comparable data available. In these assignments, a real estate appraiser is needed to identify and conclude as to the value of the real property and the market value of a lease payment that would be paid to an independent third party if the real property were leased instead of owned by the entity. A business appraiser is needed to value the going concern after including the market lease expense in the Company income statements and in the income forecast developed for valuing the going concern portion of the real property going concern. The combined value of the real property as determined by the real estate appraiser and the going concern as determined by the business appraiser constitutes the fair market value (or market value) of the real property going concern. Learn where the lines are between a real estate appraisal and a business valuation and how to work with a business appraiser on complex operations! Understand how to use and analyze historical financial records in order to develop applicable rates of return! Learn the similarities and differences between methods used by real estate and business appraisers!
Main Presenter: Paul Hyde, MAI, ASA, ASA, ASA, MCBA, Hyde Valuations, Inc., President
Co-Presenter: Shawn Hyde, CBA, CVA, CMEA, BCA, International Society of Business Appraisers, Executive Director
Tuesday, July 23: 10:30 am - 12:00 pm
Session Title: Cannabis & Real Estate - The Ripple Effects of Legalization & Regulation (continued from General Session)
Session Abstract: The legalization of cannabis is rippling through real estate markets from coast to coast. With regulations varying from state to state, the impacts of legalization range from the chaos of California to well managed markets of Colorado. The primary goal of this presentation will be to illuminate the impacts legalization and specific regulations are having on real estate markets, ranging from the industrial markets in California and Colorado to the rural residential markets of California's Emerald Triangle. The implementation of legalization has varied by state, with notable differences in the resulting impact on the cannabis industry and the real estate it utilizes. In hindsight it is clear that Colorado has achieved the greatest success in managing the emergence of its cannabis industry, while California continues to struggle with implementation, severely constraining the emerging cannabis industry and negatively impacting its ability to adopt viable real estate strategies. In Oregon, limited regulations on production have resulted in a collapse of the nascent cultivation industry. The second goal will be to demonstrate the evolution of cannabis real estate markets, most notably the Colorado industrial market, where pricing for Class B & C product spiked and then stabilized and the rural residential markets of California's Emerald Triangle, where property values are falling as production moves closer to the primary demand centers. The third goal will be to demonstrate the impact of zoning regulations on retail properties.
Main Presenter: John Vaughan, MAI, Newmark Knight Frank, Senior Vice Pres
Co-Presenter: Brad A. Weiman, MAI, Newmark Knight Frank, Senior Managing Director
Co-Presenter: Beau R. Whitney, New Frontier Data, Inc., Senior Economist
Co-Presenter: Andrew R. Lines, MAI, CohnReznick Advisory’s Valuation Advisory Services, Principal
Session Title: The New Normal in Residential Appraisal: Hybrids, Bifurcation and Contract Bias
Session Abstract: This presentation will explore the current state of the residential appraisal space, including the hybrid or bifurcated process that relies upon third-party inspection results provided to the valuer in lieu of his or her own viewing of the real estate. The presenters will also analyze the other new challenges and opportunities for residential practitioners given the growing capabilities of technology and the changes in demand for services from appraisal users. Inherently linked to that discussion are the current talking points and data in the market about the notion of a residential appraiser’s “contract or target bias” when engaged for a purchase (and even a refinance) appraisal. This suggestion is advanced by some appraisal users as they continue to explore non-appraiser, or more limited appraiser-scope, technology-based valuation products.
Specific areas of concern and insight to be discussed are 1) the risks of bypassing an appraiser’s honed skills of observation, 2) the quality and standardization of the inspection data provided by the third-party, 3) possible known or unknown bias by third-parties, whether due to disclosed or undisclosed circumstances such as their engaging party, 4) the potential risk exposure to practitioners that rely on third-party data, 5) current state regulatory actions aimed at acknowledging the duty to protect the public by further clarifying the responsibilities and obligations in a hybrid appraisal process, 6) data from the VA that challenges the idea of a “contract/target bias” among its appraiser panel, and (7) a forward-looking view of the profession from the nation's leading valuation futurist.
Main Presenter: Craig Steinley, SRA, AI-RRS, Steinley Real Estate Appraisals and Consulting, Principal
Co-Presenter: James Heaslet, MBA, US Dept of Veteran Affairs, Chief Appraiser, Valuation and Construction
Co-Presenter: Mark Linne, MAI, SRA, AI-GRS, Chrysalis Valuation Consultants LLC, Principal
Session Title: Labor Laws: Rights and Responsibilities for Appraisers and Employers
Session Abstract: How appraisers are classified for purposes of federal and state wage and hour laws, employment related taxes, and other federal mandates has quickly risen as a major issue for appraisers and their employers. Numerous lawsuits alleging violations of both federal and state labor laws have been filed against appraisal firms, lenders, AMCs and other employers of appraisers. Some courts have held that appraisers are not exempt from the payment of overtime as professionals or administrative personnel and some of these cases have resulted in significant judgments. Employers often attempt to avoid having to deal with all these issues by classifying their appraisers as independent contractors. However, whether classification of an appraiser as a contractor is legally correct for an appraisal firm can be a difficult question. There are different tests for federal tax purposes versus for overtime, unemployment insurance, workers compensation or liability. The details of the tests vary by state. There is no single standard for determining whether an appraiser is properly treated as an independent contractor. A landmark decision by the California Supreme Court, which may be adopted and referenced by other states, has established a new test for determining whether a worker is an employer or contractor This session will review the applicable portions of the federal Fair Labor Standards Act (FLSA) and state wage and hour laws. The facts and legal arguments being advanced in pending lawsuits, and the outcome in the decided cases, will be reviewed and analyzed. The judicial opinions in some of the decided lawsuits will be stud
Main Presenter: Peter Christensen, Esq., LIA Administrators & Insurance Services, General Counsel
Co-Presenter: Scott DiBiasio, Appraisal Institute, Manager, State & Industry Affairs
Session Title: Litigation Support: A Consultant’s Gold Mine of Business Opportunities
Session Abstract: Many appraisers, consultants, and advisers are weary or down right apprehensive of the term “litigation support”. However, to that end we say let us unmask the mystery of litigation support and embrace how Expert Consulting Services, a component of litigation support, is different than Expert Witness Services. Expert Consulting Services can and does provide a multitude of business opportunities that tangibly can improve your networking capabilities and bottom line. Some of the salient take-aways for the participants include: • Understanding the difference between Expert Consulting Services Vs. Expert Witness Services; • How to get in and effectively market this professional service line; • The benefits of specialization; • Tips to avoid the label “Hired Gun; and • Provide tangible examples and insight regarding the various roles within the litigation support basket regarding Expert Consulting Services such as preliminary analysis, modeling and damage calculations, assist counsel in reviewing information and documents to help determine relevancy and importance, aid in the selection of an expert witness, and assist with settlement matters to name a few. The proposed presentation will provide participant insight regarding the rules of the road for any litigation support related work. For example, providing clarity as to the role of an Expert Consultant Vs an Expert Witness and illustrating the importance of separating the two roles. We will look at how specialization can be a business multiplier for these opportunities.
Main Presenter: Doug Main, MAI, CRE, CCIM, ASA, CEC, SGA, CBRE, National Co-Leader Litigation Support & Dispute Analysis Practice
Co-Presenter: Web Collins, MAI, CRE, FRICS, CBRE, National Co-Leader Litigation Support & Dispute Analysis Practice
Session Title: Transferred Value
Session Abstract: There is often a gap between cost and value the day a building is built. This presentation will discuss why and identify where the functional obsolescence goes. New terminology will be introduced. Bad functional obsolescence is cost that exceeds real estate value that does not transfer. Branding elements and specific design elements of buildings generally do not transfer their cost to market value. Good functional obsolescence is the difference between cost and value that is not lost but transfers. There are seven categories of transferred value, this difference can transfer to...(1) a person, (2) intangible assets, (3) within a property, (4) to another property, (5) to a community, (6) to an organization and (7) within a system. The talk will briefly introduce the nature of a transaction and the conversion of assets. The ramifications of the information are significant. Many loans are booked as 100% real estate when, in fact, the transaction includes assets that are other than real property. Property tax systems that are charged with assessing real estate assets often erroneously include intangible value in the valuation for tax purposes. The goal of this talk is to introduce transferred value and the impact of the concept on real property and business valuation.
Main Presenter: Ted Whitmer, MAI AI-GRS CRE CCIM Attorney, Ted Whitmer, Appraiser Consultant
Tuesday, July 23: 1:30 pm - 3:00 pm
Session Title: Affordable Rural Housing in the U.S.: Myths and Realities
Session Abstract: The goals of this PowerPoint presentation with be threefold: 1) first, to highlight numerous public misconceptions about extensive USDA real estate lending programs--for example, the frequently mistaken notion that these programs involve small dollar amounts and minmal community impact, when in fact the opposites are usually true; 2) second, remind audiences of the broad historical background for USDA lending programs, beginning with the New Deal, extending through the Great Society, and continuing into the 21st century with significant demographic shifts between U.S. urban and rural geographic areas; 3) examine future trends with USDA lending as these appear to be currently taking shape, both in terms of legislative budgeting and actual program delivery.
Main Presenter: William Farina, MAI, AI-GRS, USDA Rural Development, Review Appraiser
Session Title: Know Thyself: An Appraiser's Highest and Best Use
Session Abstract: A twist to something familiar, this presentation applies the valuation process and highest and best use analysis to the life of an appraiser. Participants will benefit from analyzing their own appraisal businesses, using a set of standards modeled after the appraisal process they are already familiar with, to determine their own highest and best uses in their practices. From asking who makes the coffee, types the report, and answers phone calls and emails, to managing data, adding staff, using outsourcing, and leveraging modern tricks and treats in technology, the session applies to multiple disciplines and a wide demographic of appraisers. Even great appraisers sometimes forget the other side of the coin: we must run our businesses as skilled professionals -- just as we do when we appraise a property. This session prompts participants to appraise themselves, by first identifying the problems facing their businesses. After problem identification, they explore their main purpose, their highest and best use, available technology, and the “gig economy” market. The presentation will summarize peers’ best practices in the lives of appraisers. In the end, participants will recognize the opportunities that come from clients’ problems, plan for solutions that align with their own highest and best uses, and, finally, increase the quality of their business and life – while still getting home in time for dinner.
Main Presenter: Joshua Walitt, SRA, AI-RRS, Property Interlink, Vice President Operations and Compliance
Co-Presenter: Siska Hutapea, MAI, SRA, AI-GRS, Cornerstone Valuation Guam, Inc., President
Session Title: Taking it to Court: Review Appraisal in the Legal Arena
Session Abstract: The session will begin with brief overview discussions by the presenters on the general topic, specifically focusing on the growing recognition of the Appraisal Institute’s AI-GRS and AI-RRS designations within the legal community.
Then, using two or three actual case studies (veiled from any specific identifying details), the presentation will provide unique examples of effective uses of review appraisal in legal disputes with the intent of assisting attorneys, their clients, and valuation professionals better understand their respective roles and responsibilities.
Attendees will then be encouraged to participate by analyzing case study handouts and providing responses to four or five questions posed by the presenters. The questions are intended to stimulate discussion in a give-and-take format that may bring in other ‘what-if’ situations based on a reasonably similar fact set.
The specific case studies will address:
Review appraisal in assessment appeals.
Review appraisal in a mediation assignment involving a public purpose acquisition.
Review appraisal in an appraisal-theory-based dispute.
Presentation goals include:
1. Illustrating the need for attorneys and valuation professionals to clearly ascertain the assignment elements before contracting a review appraisal assignment.
2. Demonstrating the critical importance that the review appraiser remain unbiased when performing review appraisal services, in contrast with some other areas of litigation support when not acting as an appraiser.
3. Clarifying why an appraiser should avoid accepting a review appraisal assignment when the appraiser has been previously engaged for an appraisal involving the same property in the same matter.
4. Discussing some of the factors that make a review appraisal particularly effective, helpful to attorneys as they present a case, and useful to judges as they try to understand the issues.
5. Stimulating interest of users of appraisal services and valuation professionals in Appraisal Institute review appraisal publications, education, and designations.
Main Presenter: Richard Borges, MAI, SRA, AI-GRS, AI-RRS, Cross-Continent Real Estate Mediation and Arbitration, Principal
Co-Presenter: Benjamin Blair, Esq., Faegre Baker Daniels LLP, Partner, Attorney
Session Title: Recognized Methods & Techniques of Real Estate Appraisal. Where Do You Look? AI’s Body of Knowledge!
Session Abstract: The Appraisal Institute Board of Directors resolved: “The current Appraisal Institute Body of Knowledge shall be composed of:
Currently available textbooks, monographs and Guide Notes published by the Appraisal Institute, excluding compilations of published articles, and
Current nationally developed Appraisal Institute course and seminar offerings.
The current Appraisal Institute Body of Knowledge is an authoritative source of recognized methods and techniques for valuation practitioners.”
USPAP 2018-19 mentions “Recognized Methods and Techniques of Real Estate Appraisal” 18 times, 15 of which relate to real estate appraisal. Most references merely reiterate SR 1-1(a):
“be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal”.
Thus, USPAP does not define “recognized methods and techniques” of real estate appraisal.
Since 1932, the AI Body of Knowledge (the “BoK”) has been recognized by the real estate industry and by courts as the foundation of real estate appraisal Recognized Methods and Techniques (“RMAT”).
In our presentation, we will
1) Identify elements of the BoK;
2) Discuss how/why the BoK can be considered RMATs;
3) Review appraisal standards, including USPAP and the AI’s SVP, then relate them to the BOK; and
4) Discuss how the BoK, RMAT and appraisal standards can be used in everyday appraisal practice.
Our Goals in this presentation are to provide attendees with:
1) Awareness of the BoK, and how it can be used as the basis of appraisal RMATs;
2) Ability to relate the BoK to RMATs, and to USPAP (or other standards), in their everyday practice, particularly in litigation assignments; and
3) Knowledge of how to use BoK/RMAT to avoid and defend allegations of USPAP non-conformities.
Presenters will include the Chair of the AI Body of Knowledge Committee, Chair of the AI Education Committee and an experienced MAI-Esq appraiser defense attorney.
Main Presenter: Dennis Scardilli, MAI, Esq., Law Office of Dennis A Scardilli L.L.C., Attorney
Co-Presenter: Steven Roach, MAI, SRA, AI-GRS, Jones, Roach & Caringella, Inc., President, CFO
Co-Presenter: Leslie Sellers, MAI, SRA, AI-GRS, Sellers & Associates, Principal Appraiser and Owner
Session Title: Trophy Ranches and Trophy Trout: Using GIS Modeling to Determine the Value of High Amenity Western Ranches
Session Abstract: Scenic western "trophy ranches" with great recreational character for hiking, hunting, riding and (increasingly) fly fishing continue to be in great demand. This session will trace the history of the appraisal profession's definition of a "trophy ranch" and summarize the characteristics that give them continuing appeal in a national and even international marketplace. Attendees will learn how paired sales analysis and especially GIS modeling can be used to measure the contribution of scenic and recreational quality to prices paid and to support appropriate adjustments in ranch land appraisal assignments. Real world examples will be provided of how to use those techniques to determine the contribution to value from "blue ribbon" and "gold medal" fly fishing designations for rivers and streams in Colorado and Wyoming. Attendees will learn about the federal government's trophy ranch criteria, various sources of on line data for amenity characterization, and how to use simple forms of GIS modeling to classify and adjust for trophy ranch characteristics.
Main Presenter: Richard Roddewig, MAI, CRE, FRICS, JLL Valuation & Advisory Services LLC, Managing Director
Co-Presenter: Peter Dittmar, Granite Creek Valuation LLC, President
Co-Presenter: BenjaminTolles, JLL Valuation & Advisory Services LLC, Analyst
Tuesday, July 23: 3:30 pm - 5:00 pm
Session Title: Big Box Transaction Insights
Session Abstract: Situs RERC has researched sale transactions of big box retail properties throughout the United States from 2010 through the beginning of 2018. Through the research, Situs RERC has assembled approximately 900 big box retail property sale transactions that met strict classification criteria. Attendees will have many takeaways, including insight into questions such as:
How do physical property characteristics, such as size and age, impact the sale price of big box properties?
How does sale price vary with different property rights?
What is the impact of deed restrictions on big box properties?
How do the tenant credit rating and remaining lease term impact the capitalization rate of leased big box properties?
What are the probable uses and who are the probable users of big box properties?
How do the sale prices of big box properties vary as the market tier changes and between regions of the United States?
Main Presenter: Dane Anderson, MAI, CCIM, Situs RERC, Director
Session Title: Condemnation Issues for Valuation of Pipeline and Utility Easements
Session Abstract: Topic Name: Condemnation Issues for Valuation of Pipeline and Utility Easements Presenters: Joseph E. Batis, MAI, R/W-AC (appraiser; facilitator/presenter) Joseph C. Magdziarz, MAI, SRA, AI-GRS, AI-RRS (appraiser; presenter) John M. Spesia (attorney; presenter) Qualifications of the three presenters are attached. Presentation Abstract: The topic will address key issues pertaining to valuation of permanent and temporary easement rights acquired for underground utilities. Emphasis on valuation results that comply with (1) professional standards, (2) applicable statutes, and (3) recent appellate court decisions. Presentation will include discussion of how the impacts of underground utility easements may differ from one property type to another. Presentation will provide insight into appraiser’s role in easement acquisition efforts and in eminent domain actions, and will provide current/relevant court decisions affecting easement valuation methodologies, admissibility of appraisal opinions in easement cases, and factors influencing credibility of expert valuation testimony. The presentation will also address the roles (litigation expert, review/rebuttal consulting expert, opinions provided during negotiations) an appraiser may have during acquisition efforts and in eminent domain cases involving acquisitions of underground utility easements. Objectives for Attendees: To recognize and understand: (1) The applicability of USPAP’s Competency Rule in easement valuation cases. (2) The necessity to develop and rely on market evidence versus speculation when valuing easement rights and the impact of easemen
Main Presenter: Joseph Batis, MAI, R/W-AC, EDWARD J BATIS AND ASSOCIATES, Owner
Co-Presenter: Joseph Magdziarz, MAI, SRA, AI-GRS, AI-RRS, Professional Valuation Advisors, Owner
Co-Presenter: John Spesia, Attorney at Law, SPESIA & TAYLOR, Partner
Session Title: FAA Airport Land Development and Valuation Requirements
Session Abstract: The recently enacted FAA Reauthorization Act of 2018 (P.L. 115-254) extends long standing FAA airport land management and appraisal policy into new statutory provisions. Under the statute, federally obligated airports (over 3,300) must receive fair market value for all commercial non-aeronautical transactions involving obligated airport land use - use, lease, encumbrance, transfer, and disposal. FAA developed Compliance Guidance Letter 2018-3, Appraisal Standards for the Sale and Disposal of Federally Obligated Airport Property to assist airport owners solicit needed appraisals to support use and development of their non-aeronautical revenue producing airport land. This session will introduce the FAA standards and describe application and documentation requirements for airport land. Speakers from FAA (past and present) and an airport owner will describe the application of the appraisal standards and development requirements for commercial/retail development, long term lease for compatible redevelopment, approval of interim/concurrent use of airport land for solar or mineral extraction, and joint use of airport land. Session attendees will receive enhanced understanding of airport land development and appraisal documentation requirements to support airport non-aeronautical development proposals. Goals in the U.S. for airport land redevelopment are to maximize economic returns to the airports and the surrounding local community for coordinated land development with airport operations.
Main Presenter: Rick Etter, HDR, Director of Aviation Land Acquisition
Co-Presenter: Kevin Bokoske, MAI, AI-GRS, AI-RRS, Broward County, Real Estate Due Diligence Officer
Co-Presenter: Deandra Brooks, FAA, Land Use and Real Property Specialist
Session Title: Green and High-Performance Market Update: Current Demand, Future Outlook
The market for high-performing homes and commercial buildings continues to evolve at a fast pace. Technological advances, governmental and lending policy changes and shifting consumer tastes all contribute to a dynamic valuation environment. While green labels and rating systems are becoming more common, buildings are increasingly expected to attain measurable performance metrics across energy, resource and even occupant performance metrics.
In this session, the focus is on the factors shaping green and high performance design and construction as well as how the market is reacting. What are the current trends and what does the future hold for green and high-performance homes and commercial buildings? We’ll look at what policy and regulations mean to the supply side, and take a look at what type of green and high-performing features buyers and tenants are looking for in homes and commercial buildings. We’ll then turn to the future for emerging trends and how appraisers can stay current and competitive in today’s market.
Specific topics covered in this session:
- How are changes in net metering policies affecting solar PV value?
- Do leased PV systems affect property value?
- Understanding microgrids
- Batteries and energy storage
- What is the effect of diminishing tax incentives on solar?
- How changing building codes affect conventional buildings
- The growing importance of resilience in building design
- “Healthy” homes and buildings
- The effect of buildings on productivity
- How building performance affects value, and why it’s more than just energy efficiency
- Who is willing to pay more for high performance homes and commercial buildings
- What features are important, and how is market demand changing
Main Presenter: Timothy Runde, MAI, LEED AP, Runde & Partners, Inc., President
Co-Presenter: Sandra Adomatis, SRA, LEED Green Associate, NAR Green Designee, Adomatis Appraisal Services, President
Co-Presenter: Stacey Thoyre, WELL AP, LEED Green Associate, Runde & Partners, Inc., Co-Founder
Session Title: The Problem with Problem Identification: There Might be More than One Credible Answer
Session Abstract: In every intended use, valuation professionals must start by identifying the appraisal or review problem they are asked to solve. Problem identification leads directly to the determination of the scope of work for the engagement and can have a profound effect on the conclusion. Though this is most obvious in litigation and arbitration, where two qualified professionals sometimes present widely differing value conclusions, the fact that problem identification has a strong effect on value is true in all intended uses. Attendees will see how two valuation professionals analyze information and arrive at different, but credible problem identifications as we present case studies based on actual engagements; attendees will be able to work through the problem identification at the same time. We will see whether problem identification does or should change if one or more elements are dictated by law or client motivated. Attendees will also see how poor problem identification can lead to disappointed clients and professional liability.
Main Presenter: Paula Konikoff, JD, MAI, AI-GRS, Paula Konikoff, Inc., Principal
Co-Presenter: Stephen Roach, MAI, SRA, AI-GRS, Jones, Roach & Caringella, Inc., Principal
Co-Presenter: Peter Christensen, Esq., LIA Administrators & Insurance Services, General Counsel
Wednesday, July 24: 8:30 am - 10:00 am
Session Title: From Fixer-Upper to Dream House: Is the Appraisal Process Ready for a Remodel?
Session Abstract: The mortgage origination process has evolved significantly in the past decade, and change continues at a fast pace. Is the appraisal process also ripe for renovation? The foundation of local expertise and appraiser independence remains essential. But as we move beyond the days of clipboards and hand-drawn sketches, maybe it’s time to modernize the appraisal process to work smarter, not harder, for everyone.
This session will explore the process updates, big data, emerging technologies, and innovation that are transforming the residential appraisal field. What approaches are now in use or testing? How will appraisal careers be impacted? What are the potential opportunities and challenges for appraisers? And what are the implications for mortgage lenders, borrowers, investors, and industry service providers?
Main Presenter: Lyle Radke, Fannie Mae, Director, Collateral Policy and Strategy
Session Title: International Valuation of Mineral Estates - Mining and Oil & Gas
Session Abstract: There are standards to apply for accountants and real estate appraisers when valuing MINERAL estates, once the reserves have been estimated. But what are fair value, market value, investment value of these?? The is the purpose of this interactive Workshop. The International Mineral Valuation (IMVAL) Committee, founded in 2012, has developed strategies for making those mineral asset valuations, also for oil & gas. The strategies have been combined in a template, the "International Mineral Property Valuation Standards Template", which complies with the International Valuation Standards (IVS). The IMVAL Template is widely adopted among technically based appraisal institutes and some international regulatory agencies. More communication is needed with the accounting profession, which is an objective here. The template is a living document, based on three fundamental principles: Competence, Materiality, and Transparency. The Template is a base on which countries and appraisers may harmonize the standards in their own countries for valuation of minerals as real estate. It represents a consensus of current good practices. It is not a stand-alone reporting code and does not claim to supersede existing national reporting standards. To put a cash value for financial reporting on minerals, be it land position, at feasibility stages, during development or at the producing stage: IMVAL can be the key! The speaker will work with the audience, aiming at speaking the same language (engineers, accountants, and appraisers). IMVAL provides guidance.
Main Presenter: John Gustavson, Cert.Mineral Appr. 1992-1, Mineral Appraiser, LLC, Principal
Session Title: Rules and Regulations for Aerial Drone Inspections
Session Abstract: Appraisers already have the skill sets necessary to take advantage of incorporating aerial drone inspections into their practices. Real estate is the number one industry using drones and there are plenty of opportunities for appraisers. Appraisers can not only provide valuable services to their clients but also a number of other businesses that need aerial skilled inspectors.
There ARE Six goals for the presentation. The first goal is to recognize 6 businesses that want aerial drone inspections of real estate. The second goal is to make sure the attendees understand the current rules and regulations for drone usage. They will be provided with valuable sources to conduct aerial inspections safely, reliably and repeatably. Next, we will discuss how to put together a compliance folder for operations and understand why checklists are important. Finally, if time permits, we will discuss some inspection techniques and tips.
Main Presenter: Lamar Ellis, MAI, SRA, Drone Education Services, LLC, President
Session Title: The Modern Appraisal Practice: Selling a Product, a Service, or a Solution
Session Abstract: The evolution of the appraisal profession as an art (and science) has been of great benefit to users of appraisals and appraisal services, as well as contributed effectively to the overall efficiency of the economy. However, as business executives, we shouldn't lose sight of the reality that a majority of practicing appraisers and appraisal firms are entrepreneurial enterprises at their core. As such, entrepreneurs take on a wide range of roles, apart from valuation analyst, to maintain, sustain, and grow their business in an increasingly competitive and regulated marketplace. The objective of this presentation is to examine the "deliverable" in the context of the current customer service experience revolution taking place in the markets which use appraisals and appraisal services — both residential and commercial. The appraisal and appraisal services are presented in the context of customer-client perceptions and expectations of the "deliverable" as a product, a service, and as a solution to a problem while challenging some of the traditional ways we think of appraisals and appraisal services as entrepreneurs and providers of appraisals and appraisal services. Goals/Learning Outcomes: (1) Selling "Service" Strategies, (2) Business Development Strategies, (3) Marketing - Adding Value with Partnership-Building and Relationship Strategies.
Main Presenter: John Rossi, MBA, Rossi and Associates, Director, Valuation Services
Session Title: The New Frontier: Marriage of Appraisal Review and Validation Stress Testing
Session Abstract: The range of valuation needs within financial institutions is broad, especially for portfolio monitoring, loan renewals, and modifications. Traditional point-value estimates – whether appraisals or evaluations – may not answer the key issues of banks, limiting the usefulness of traditional appraisal services. Financial demand continues to shift from appraisals toward non-traditional products. Appraisers must adapt to this, and intercept banks' evolving needs in order to remain relevant. The U.S. real estate market is late in its cycle, with growing concerns about price pressure in commercial real estate. At the same time, recent guidance released by regulators confirms a potential limitless useful life for appraisals and evaluations already in file. This convergence is likely to increase the demand for validations both near- and long-term. Appraisers are ideally positioned to innovate the new valuation stress test products that can answer important validation needs, especially in a shifting economy. Participants in this seminar will understand: •Different regulatory and functional uses for valuations in loan production versus loan renewals and portfolio monitoring. •Bank expectations for the useful life of appraisals and evaluations, and how validation processes and procedures can impact. •Best practices for supporting innovative relational values in ways that offer trend insights while also complying with USPAP standards. •How to marry appraisal review theory with relational value concepts that support validation processes.
Main Presenter: Douglas Potts, MAI AI-GRS, Commerce Bank, VP Chief Appraiser
Co-Presenter: Paula Konikoff, JD MAI AI-GRS, Paula K. Konikoff JD MAI AI-GRS, Principal
Co-Presenter: Leslie Sellers, MAI SRA AI-GRS, Sellers & Associates, Principal / Owner
Wednesday, July 24: 10:30 am - 12:00 pm
Session Title: Artificial Intelligence, AVMs and the Future of Appraisal
Session Abstract: This four-hour seminar will examine the potential, risks, and opportunities that artificial intelligence, machine learning, and blockchain technology offers to society in general, but with a particular focus on its ramifications for valuation professionals. Seminar attendees will gain an understanding of the history of artificial intelligence and machine learning and how these technologies presently manifest themselves in our lives, and finally, how they will be present in all aspects of our society. The current state of AVMs and recent innovations that incorporate a higher-level of artificial intelligence will also be examined, understanding the fundamental enhancements in accuracy and use in a broader context within the financial marketplace. The impact of recent Treasury Department reports on the financial infrastructure of the nation clearly identify artificial intelligence, machine learning, AVMs and blockchain as fundamental gamechangers in the industry, and the seminary will highlight how this perspective will change the playing field for appraisal. Participants will be given insight into how valuation professionals can take advantage of the opportunities that AI and related technologies represent, with an understanding of how valuation will have to evolve to encompass these new opportunities effectively.
Main Presenter: Mark Linne, MAI, SRA, AI-GRS, CAE, CDEI, FRICS, ValueScape Analytics, Inc., CEO
Session Title: Bringing Appraisal into the Modern Era
Session Abstract: A presentation on some of the systemic problems with the current appraisal process, why the current technology and regulations aren't solving those problems, and how we can change our technology/process in order to improve outcomes for all participants in the industry. -Overview of industry layout and problems: Appraisal middlemen (AMCs), slow turntimes, expensive fees, declining number of appraisers, higher standards being demanded by lenders -How the layout/technology contributes to these problems: outdated software, fragmented parties that aren't connected (lender-->AMC-->appraisal firm--> appraiser), lack of data access/transparency -How the industry can combat this without getting rid of appraisal as some regulations propose: improved technology, disintermediation of appraisal parties, standardization of data through aggregation, easing regulations -What the industry could look like: better, faster, cheaper appraisals with happy appraisers and happy lenders -What the technology will look like at that point: mobile apps, automated inspection scheduling, Uber-style appraisal fulfillment
Main Presenter: Brian Zitin, Reggora, CEO
Session Title: Discussions on Writing Client and Reviewer Friendly Reports
Session Abstract: The relationship between appraisers and reviewers is a complex one that can be taxing at times for both parties. Reviewers are tasked with the challenge of providing an assessment of an appraiser’s work product while ensuring that the report meets all applicable regulations and standards. The reviewers job becomes more difficult when reports are not written in a manner that is easy to follow. This typically leads to emails and/or phone calls where the two parties must work together in order reach a consensus of the report issues. This session will provide a step by step approach to writing a reviewer friendly report from the letter of transmittal to the reconciliation. Special emphasis will be placed on the Scope of Work section and how the appraiser can avoid potential pitfalls with the client by applying the correct Scope of Work. There will also be a discussion of the proper application of comparable data, and what the appraiser should do to ensure that he does not unintentionally mislead the reviewer. The session will draw on past experiences of all three presenters, and will include multiple examples from actual appraisal reports that were reviewed by the instructors. The goal of this presentation is to provide attendees with real world examples of how appraisers can write client and reviewer friendly reports by applying best practices in their assignments.
Main Presenter: T. Mandell Tillman, MAI, AI-GRS, Tillman Consulting, President
Co-Presenter: J. Roger Ball, MAI, AI-GRS, Commercial Valuation Services, Real Estate Analyst
Co-Presenter: Mark Haller, MAI, SRA, Haller Real Estate, President
Session Title: Market Equilibrium Analysis
Session Abstract: "What's the Vacancy Rate?"
That is often the first question a market analyst asks about a particular market because the answer is expected to communicate the health of that market. Such is the power of the vacancy rate - a high vacancy rate is often considered bad; a low vacancy rate is often considered good, High and low, however, are relative terms - one market's high rate may be another market's low rate.
Vacant real estate space has often been viewed as a negative market characteristic. In fact, much of the market operates with the goal of eliminating vacant space, thereby matching demand with supply. From the landlords' perspective, this may be a desirable goal. From the market's (and prospective tenant's) perspective, however, zero vacancy is a highly negative condition that prevents satisfying both tenant relocation and new demand. Given these underlying conditions, the question arises as to how much vacant space is needed in a balanced, efficient market to produce equilibrium?
Main Presenter: Richard Parli, MAI, Parli Appraisal, Inc., President
Session Title: Seniors Housing Valuation Trends
Session Abstract: The seniors housing and care market is one of the more dynamic and fastest growing property types in commercial real estate. It is also one of the more complicated property types to appraise. This presentation will provide an overview of valuations trends, supply and demand attributes, and unique valuation methodologies and scope requirements that appraisers should consider.
Main Presenter: Zach Bowyer, MAI, CBRE, Senior Managing Director/ Practice Leader