The Alabama Appraiser

Transcription

1 The Alabama Appraiser Announcements: Chapter Meeting Orange Beach June 20 Fun In The Sun Fish Fry Dinner For More Information Go To: Alabama Chapter of the Appraisal Institute First Quarter 2014 The First Chapter Meeting of 2014 was February 6th In Montgomery Inside this issue: Message From the 2014 President Volunteer of Distinction Sponsorship ACRE Conference Region IX Meeting & Mini LDAC Education 8 Fun In The Sun Seminars Members Speaking Realtor Meeting Meetings & Events 11 New Members 12 The speaker for the first meeting of 2014 was Mr. Chris Smith, State Land Manager for the Department of Conservation and Natural Resources for the State of Alabama. Mr. Smith manages the Forever Wild program and other State Land Division programs. He spoke about the Forever Wild program, how land was acquired and managed for public use as recreational areas. He spoke of the recreational trails that were available especially at Oak Mountain. Thank you Mr. Smith for a very interesting and informative presentation. Congratulations To Our Newest Designated Members John William Kidd, Jr, SRA Shane T. Lovelady, MAI

2 Page 2 The Alabama Appraiser Message From The 2014 President: Gregory Hartley, SRA-2014 Alabama Chapter President Greetings fellow appraisers. We have now completed the first quarter of 2014 and I hope it has been a busy and profitable quarter for you. The economy is trying its best to pick up the pace and some markets are seeing modest increases in median prices, both in the commercial and residential sectors. As in the past, uncertainty by market participants appears to be the driving force behind the sluggish recovery from the recession. Interest rates are good and credit requirements have been slightly loosened, but the engine of recovery has not quite reached cruising speed. We should remain optimistic and continue to do the good job we ve been doing in helping our clients become comfortable with the level of uncertainty we all face. Our last chapter meeting in Montgomery was held in the face of a potential blizzard. The snow did not materialize but many chapter members did. As usual, the food at the Capital City Club was top notch. Our speaker was Chris Smith who is the State Land Manager for the Department of Conservation and Natural resources and the director of Alabama s Forever Wild Land Trust program. His presentation was informative and entertaining. Our state enjoys a vast array of natural resources and a great deal of public land. We are fortunate to have a program such as this in our state. We had a great turnout for our early offering of USPAP. This was the first year that we ve offered USPAP this early in the year and it was so successful that we are offering another USPAP course in May. This class will again be taught by Mark Smeltzer, SRA, and will be coupled with the UAD class. The UAD class, UAD Aftereffects: Efficiency vs Obligation, also taught by Mark, should be of special interest to our residential members since FNMA and FHLMC have implemented their hard stop rules for UAD errors. This is here to stay and I encourage all our residential members to be up to date on what is required to meet the agencies guidelines for UAD submission for lenders. Both the USPAP and the UAD class are open for enrollment now, so don t delay. Mark is a great teacher and a friend of our chapter. The 2014 Appraisal Institute Annual Meeting is fast approaching. The meeting will be held in Austin, TX this year and there will be a Regional meeting on Sunday, August 3. The Annual Meeting will be held August 4 6. Both meetings are open to chapter members, with mandatory attendance at the Regional meeting by Regional officers and chapter presidents and vice presidents. I was fortunate to attend last year and also attended the leadership training session held after the Regional meeting. Both were very well attended and informative. I had no idea of the amount of work that it takes to run a chapter, we are very fortunate to have Pam Paulk to handle the vast majority of the day-today activities that are not visible to most of us. Please keep an eye out for our education offerings. We will have three other offerings besides the UAD and the USPAP classes. We will have Shawn Wilson, MAI, teaching the Complex Litigation Appraisal Case Studies class on April 11, our Fun in the Sun Seminars will be in Orange Beach on June 20 and will feature Peter Christensen of Liability Insurance Administrators leading Loss Prevention for Real Estate Appraisers and Staying Out of the Courtroom Unless You are Paid to Be There. Finally, Valuation by Comparison: Residential Analysis & Logic will be offered in Huntsville on October 10. Our educational offerings have been very successful this year and we hope to continue that trend. Finally, if you are a candidate for designation, please make sure you meet your attendance requirements. Our chapter meetings are not nearly as stuffy and boring as they sound, the food is good, and it is always wonderful to see old friends and fellow appraisers. Please contact your advisor if you have any questions about your designation requirements. I hope to see you all soon at a chapter meeting or an educational offering. As always, please do not hesitate to contact me if I may be of service to you. Greg Hartley, SRA President, Alabama Chapter

3 First Quarter 2014 Page 3 Philip E. Paulk was recognized as The Appraisal Institute s member recognition program honors one member in good standing in each region each month for their service to the organization, the profession and their community. Volunteer of Distinction for February 2014 CHICAGO (Feb. 5, 2014) Philip E. Paulk, MAI, SRA, of Birmingham, Ala., was recognized today as the Appraisal Institute s February Volunteer of Distinction for Region IX. The Appraisal Institute is the nation s largest professional association of real estate appraisers; Region IX consists of Alabama, Arkansas, Georgia, Louisiana, Mississippi, South Carolina and Tennessee. Paulk is a member of the Alabama Chapter. Philip Paulk is an exceptional ambassador for the Appraisal Institute, said Appraisal Institute President Ken P. Wilson, MAI, SRA. We re proud to be represented by individuals like Philip, who faithfully serve our organization and the real estate valuation profession, as well as their local communities. Paulk was Alabama Chapter Admissions chair in 2010 and 2008, and Public Relations chair in He has also served on a variety of chapter committees. Paulk has been president and managing partner at The Paulk Group in Chelsea, Ala. since He has been involved in the real estate valuation profession for 39 years. He joined a predecessor organization of the Appraisal institute in 1976, and he received his SRA designation in 1979 and MAI designation in He is an elder at Oak Mountain Presbyterian Church, and he is also a member of the church s Hole in the Wall Gang, which does repairs for those who cannot afford them. He is married with one daughter and one granddaughter.

4 Page 4 The Alabama Appraiser The Alabama Chapter was proud to again be a sponsor of the Alabama Commercial Real Estate Conference put on by the University of Alabama Center for Real Estate on February 7th. The chapter had a display table and promoted the benefit of working with a designated appraiser. On Friday, February 7, 2014, The Alabama Center for Real Estate (ACRE) held their annual conference at the Cahaba Grand Conference Center in Birmingham. Addressing the Real Estate Economic Outlook was Lawrence Yun, National Association of Realtors Chief Economist and Senior Vice President of Research. Mr. Yun presented the following points: Recession has ended but consumer confidence is low. Rents are going up. Small builders are not building due to banks uncertainty about federal law, and therefore not making loans. Builders not getting loans will result in a shortage of new homes. Alabama home market is better than most, but many homebuyers will have trouble in obtaining loans due to stringent debt to income ratios. Finally, inflation will remain low because other countries are purchasing the dollar. Representing the Appraisal Institute Alabama Chapter on the podium was Tim Rau, MAI. Presented by Camille Posey, SRA Public Relations Chairman Congratulations To Candidate for Designation Laura Burnett of Dothan who received the AIET Women and Minorities Scholarship to attend Advanced Income Capitalization in Atlanta this February. The Appraisal Institute Education Trust fund is a non-profit organization that has several scholarships available for those who quality in the field of real estate appraising.

5 Page 5 Fi rst Qu arter First Seminar of 2014 The USPAP Update February 7, Montogmery-Sold Out! You Ask For It,You Got It and You Supported It!!!! The Education Committee had numerous request to offer the USPAP Course in the year that the changes went into effect. In the past the committee has been reluctant to offer the course that year as it was not a recertification year in Alabama and the concern was that the attendance would not be good. However, you proved us wrong. Not only was this seminar sold out but the Board of Directors voted to put on another course in Birmingham on May 16th and the registration for that course has been good. If you want to take the Birmingham course I would suggest that you sign up. Some of the reasoning behind taking the course this year is that you are responsible for changes starting January 1, 2014 whether you have taken the course or not, if you are an expert witness it is a favorite question to be asked as to whether you are up-to-date and taken the course and the USPAP book is good for 2 years not just a few months. Mark Smeltzer, SRA has taught for the chapter several times and is always well received and liked by those in attendance. He taught the Montgomery Couse with great reviews and is also going to teach the Birmingham Couse. He invites you to come to his USPAP Party as he likes to make USPAP fun. Mark works as an Appraiser in the southwest Pennsylvania area where he does FHA Appraisals, Foreclosure / REOs, Litigation / Litigation Support, Real Estate Tax Valuation and Consulting, and VA Appraisals. He has over 25 years of teaching Appraisal Institute Courses and Seminars and is an AQB certified USPAP instructor.

6 Page 6 The Alabama Appraiser Region IX Meeting and Mini LDAC Atlanta January 31 and February 1 I was privileged to attend the mini LDAC Jan 31 and Region IX meeting the following day. I gained a greater appreciation of what our chapter and national leaders are doing to improve our profession. The title of this year s Mini LDAC was Standing Strong in a Changing Appraisal Environment. It s no surprise that the appraisal profession is changing. Some of the changes may have been for the greater good but changes that affect our profession require changes in us. If we are to continue to be successful we need to initiate some of that change ourselves and not just allow ourselves to be dragged along. This year s mini LDAC was devoted to how we, as appraisers, can embrace change and work it to our advantage. Dan Fries, SRA, told how that he uses his knowledge as an appraiser, to renovate houses and, as a consultant, advise home owners in making renovation decisions. Dan advises talking with Realtors and HOA s about emerging trends in specific communities. Expand your knowledge and practice. Aaron Carone, MAI, revealed insight about International Valuation Standards (IVS). Not interested? Don t tune out yet. Aaron pointed out some advantages for the individual appraiser becoming involved with this standard and with the necessity that our national organization be at the forefront of developing and teaching this standard: 1) our organization is shrinking, as each year sees fewer appraisers paying dues. This puts an ever-increasing burden on those of us who remain and expect quality services from the AL. The greatest potential for growth is on the international level. 2) Multinational corporations, whether headquartered in the US or in other countries are increasingly expecting appraisal services on their property, including US properties, and are using IVS instead of USPAP for consistency over all of their properties. Therefore, according to Aaron, we should encourage AI to be heavily involved with IVS and we may, ourselves, want take advantages to this opportunity. Our own Denny Key, SRA, spoke about how we can encourage members to be more active in their chapters this includes attending chapter meetings. One of Denny s suggestions was to make the younger members feel wanted and appreciated. More experienced members might let the newer members know that they can call on them help and guidance. Another suggestion: just be friendly associate with them. Be more personal in invitations to chapter meetings. We want to be the best and attract the best without being snobbish about it. Change is definite. We can fight it or get involved and help shape it. Bill Grimmett, SRA, Alternate Regional Representative

7 First Quarter 2014 Page 7 The theme of change carried over into the committee meeting that was held on February 1. AI President, Ken Wilson, put forward some things our organization is doing to help members deal with change and to help us, as members, grow professionally. Advanced education offerings are one way to knock out the point requirements of a five-year cycle (except for USPAP) in one class. The new review designations are also ways to advance and these, have thus far generated several designees with more candidates on the way. This provides additional opportunities for commercial and residential appraisers who do review work. Ken also encouraged immediate action as the qualifications for these designations are slated to increase over time. Our own Richard Maloy spoke about the 45-day notice. This has since passed but is essentially an effort by our leadership to increase standards for designation members by requiring an undergraduate degree; but, it also leaves a window for those without a degree who are already on a path to designation. Denny Key spoke on government affairs. If there is one universal characteristic true of all appraisers, it probably is disdain for politics. However, we are in a profession that is integral to an industry that is subject to intense regulation and change both at the state and national levels. We ignore this only at our peril. To further paraphrase Denny on this point, much of the change comes from well-meaning legislators that are less-than-well informed about the appraisal industry. These legislators are influenced by stakeholders, some of which may not have the best interests of appraisers at heart. Denny s main point is that we appraisers need to get more involved in the legislative process. As individuals, we can have influence by letting our legislators know what we expect. Collectively, we can contribute to APAC so that we appraisers and members of AI can get a knowledgeable person in front of our law makers. One further point made by Denny: legislators listen to people who show willingness to help them that means money at election times. The members of our chapter who have invested time and effort, both on local and national levels are to be commended. Appraisers face many challenges but a well-equipped organization will also help us take advantage of opportunities as they present themselves. Bill Grimmett, SRA, Alternate Regional Representative

8 Page 8 The Alabama Appraiser 2014 Educational Offerings Great Classroom Education-Sign Up Today Birmingham-April 11- Complex Litigation Case Studies NEW SEMINAR Instructor: Shawn Wilson, MAI Based on the Appraisal Institute s new textbook Applications in Litigation Valuation: A Pragmatist s Guide, this one-day seminar discusses in detail three of the book s case studies that provide an overview of litigation strategies to appraisers who are new to litigation work, as well as a reinforcement of litigation skills to more experienced appraisers. (AI Price-$195 Full Price-$215) Book Required: Applications in Litigation Valuation: A Pragmatist s Guide is required for this seminar and is not included in the registration price. Still A Few Places Left-Call Pam Birmingham-May 15 UAD Aftereffects: Efficiency vs Obligation -taught by: Mark Smeltzer, SRA Attend this seminar and learn everything about avoiding hardstop errors, UAD callbacks, and stips due to non-compliance. Fannie Mae and Freddie Mac are tightening up on reports sent through the Uniform Collateral Data Portal. (If you don t understand the definition of a hardstop or rules you really need to attend this seminar). You may think this seminar is a rehash of the Appraisal Institute's first Uniform Appraisal Dataset (UAD) seminar, but it s not! You may think you re too busy to attend, but really, you can't afford to miss it! (AI Price-$195 Full Price-$215) Take this and Stay for USPAP Next Day!! Birmingham-May 16 - The New 7-Hr USPAP Update Instructor: Mark Smeltzer, SRA This one-day update course, copyrighted by The Appraisal Foundation, focuses on recent changes to USPAP requirements for ethical behavior and competent performance by appraisers. The course will aid appraisers in all areas of appraisal practice seeking updated competency in USPAP, including those subject to state licensing or certification and continuing education requirements imposed by professional organizations, client groups, or employers. (AI Price-$195 Full Price-$215) Course price does not include a copy of the USPAP book, you must bring your own copy. Find it at Orange Beach June 20th Fun In The Sun Summer Seminars Huntsville-October 10th- Valuation by Comparison: Residential Appraisal and Logic -Instructor: James Atwood, SRA Through thoughtful debate on such topics as market value of actual sales, pending sales, new construction sales, expired listings and rejected offers; this seminar will also explore the techniques used by appraisers to interpret, and then anticipate, the actions of buyers and sellers in today s market. (AI Price-$195 Full Price-$215) The Valuation by Comparison: Residential Analysis and Logic book is included in the seminar registration cost. All Seminars Approved for Continuing Education Credit By: Alabama Appraisal Board & Alabama Real Estate Commission

9 First Quarter 2014 Page 9 Fun In The Sun Summer Seminars Orange Beach- June 20, 2014 Loss Prevention for Real Estate Appraisers 4 Hrs-AI Price-$80, Regular Price-$90 8:30am-12:30pm Who makes claims against appraisers? What do they sue for? When does the FDIC file a lawsuit? Can an appraiser be sued more than five years after the appraisal i.e., what are the relevant statutes of limitation? How long should an appraiser keep a work file? Do residential or commercial appraisers face more risk? What about review appraisers? What does E&O insurance cover? These are the types of questions answered by the seminar. (4 Hrs CE Credit Alabama Appraisers Board, 3 Hrs. CE Credit Alabama Real Estate Commission) Staying Out of the Courtroom Unless You are Paid to Be There: Liability Issues for Appraisers Performing Litigation & Other Non-Lending Work 3 Hrs-AI Price-$75, Regular Price-$85 1:30pm-4:30pm Who sues appraisers serving as expert witnesses? Who sues appraisers performing appraisals for tax purposes? What s the surest way for an appraiser to be sued for non-lending work? What s the likelihood of being sued about a retrospective review appraisal? How does potential liability for a retrospective review compare with potential liability for a contemporaneous review? What are the statutes of limitation for claims? What special provisions should I consider putting in an engagement letter for different types of non -lending assignments? These are the types of questions answered by the seminar. (3 Hrs CE Credit Alabama Appraisers Board, 3 Hrs. CE Credit Alabama Real Estate Commission) Package Deal: Both Seminars: Loss Prevention for Real Estate Appraisers + Staying Out of the Courtroom Unless You Are Paid To Be There : AI Price: $119, Regular Price: $129 Package Registration includes dinner for two at Fish Fry Dinner starting at 5:30pm at the seminar location. (Extra guest $10 a person or $20 for family) Dinner catered by Chet s Seafood of Pensacola-Winner of Best of the Coast for the last 3 years

10 Page 10 The Alabama Appraiser January 22, 2014 Thomas C. Horn, SRA Mark E. Barrs, MAI, CCIM Led a Discussion Panel At The Alabama REALTORS Winter Conference Thomas C. Horn, SRA, and Mark E. Barrs, MAI, CCIM, led a discussion panel regarding REAL- TORS /Appraiser relationships at the Alabama REALTORS Winter Conference on January 22, Among other topics the Panel discussions focused on the selection of comparable sales, the requirement to analyze the current sales agreement, and how to communicate and provide data for the appraiser s consideration. Also discussed were different types of products the appraiser can provide such as pre-listing appraisals and building area calculations for marketing purposes. Thanks to Phillip E. Horton, Alabama REAL- TORS VP of Meetings & Events for choosing Appraisal Institute members to sit on the panel. Residential Candidate Important Notice-Window of Opportunity Four-Year College Degree Requirement for SRA Designation Starting Jan. 1, 2015 Individuals who are admitted as residential Candidates on or before December 31, 2014, and who continuously maintain residential Candidacy, can satisfy the College Degree requirement with an Associate s Degree. In effect, the change gives residential Candidates who do not have a four-year undergraduate degree, or higher, a definitive window within which they can satisfy the College Degree Requirement through an Associate s Degree. Those individuals admitted (or re-admitted) to residential Candidacy on or after January 1, 2015, can satisfy the College Degree Requirement only by holding a four-year undergraduate degree, or higher. If you know of someone who would benefit by this window of opportunity please give them this information and encourage them to become a candidate before the end of the year.

11 First Quarter 2014 Page Upcoming Meetings and Events April 11th-Birmingham- Complex Litigation -Seminar May 15th Birmingham- UAD Aftereffects -Seminar May 16th Birmingham USPAP Update May LDAC-Washington DC June 20th-Fun In The Sun Seminars-Orange Beach with Family Style Social Fish Fry Dinner Chapter Meeting August 3rd-Region IX Meeting-Austin August 4-6-AI Annual Meeting-Austin September Chapter Leadership Meeting-Chicago October 9th Chapter Meeting Huntsville October 10th-Huntsville- Valuation By Comparison Seminar December 5th-Christmas Party There will be a Candidate Guidance Meeting before the Chapter Meeting in Huntsville Online Education: Learn at your own pace anytime, anywhere. Top-notch Appraisal Institute courses and seminars come straight to your desktop with online education! Learn from any computer anywhere, whenever you have time. It s easy, convenient and a great way to get the education you want. Check out the current course listing now!

12 Alabama Appraiser 2013 Board of Directors Alabama Chapter Appraisal Institute 270 Doug Baker Blvd. Suite Birmingham, Alabama Phone: Fax: Newsletter Designed By Pam Paulk, Executive Director President: Greg Hartley, SRA Vice President: Tim Rau, MAI Treasurer: Lew Watson, SRA Secretary: Laura Leigh Stephens, MAI Past President: Stephen Hasha, MAI Board Member: Ed Tillman, MAI, SRA Board Member: Roger Ball, MAI Board Member: Mark Haller, MAI, SRA Regional Representative: Josh Tanner, SRA Regional Representative: Tim Rau, MAI Welcome New Members First Quarter 2014 Matt R. Rowan-Birmingham and Erica Thompson( Student)-Prattville Candidates are reminded that they need to attend at least one chapter meeting or Appraisal Institute event (National, Regional, Chapter) approved by ADQC in Candidates who hold an Appraisal Institute Designation are not subject to this requirement. Did you know Designated members, Candidates, and Practicing Affiliates can now log in their own CE hours which now includes Hours of Service to the Appraisal Institute? You no longer have to submit a Service Verification for AI CE Credit form! You can now directly record your service hours online through your CE log! According to Regulation No. 10: Continuing Education, Designated members, Candidates for Designation, and Practicing Affiliates may earn Appraisal Institute continuing education (CE) hours for service on chapter, regional, national committees, or other service to AI. A Designated member, Candidate for Designation, and Practicing Affiliate may earn up to 25 hours of Appraisal Institute CE credit per five-year cycle for the following related activities : Chapter Board of Directors Standing Chapter Committees Regional Committees Candidate Advisor