AI Annual Conference Scott Robinson, MAI, SRA, AI-GRS 2016 President Appraisal Institute Global Valuation Opportunities and Challenges July 26, 2016
The Appraisal Institute
What is the Appraisal Institute? Nearly 20,000 professionals in almost 60 countries Extensive education curriculum in qualifying education, advanced education and continuing education Dedicated to the advancement of the profession and the body of knowledge world wide
The Appraisal Institute s Mission To advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide.
The Appraisal Institute s Vision The Appraisal Institute is globally recognized for property economics, professional ethics, standards, methodologies, practices and for being a leading provider of professional educational programs.
The Appraisal Institute s Core Values Distinctiveness Innovation Professional Responsibility Advocacy Leadership
Appraisal Institute Designations
Role of Appraisers in the United States
Basic Obligations of U.S. Appraisers Impartial and unbiased Required to be independent and objective No advocacy, no contingent compensation Loss of license or civil/criminal penalties
Common Services Provided Support for real estate lending decisions Litigation support Property tax appeals Corporate accounting/portfolio valuation Consulting and advisory services
Burgeoning Global Services Valuation for Financial Reporting Fair value Audit assistance Mergers and Acquisitions Lease accounting Due diligence in global transactions
Ongoing Regulatory Challenges One of the most heavily regulated professions Unique regulatory structure Regulatory burden is greatest on those with multistate/national/international operations Protecting the Body of Knowledge
Characteristics of the U.S. Appraiser Population
Source: Appraisal Institute, 2014 Time in the Valuation Profession
Age of U.S. Valuation Professionals 16 Source: Appraisal Institute; Dec. 31, 2015
Education Level of Valuation Professionals 17 Source: Appraisal Institute; Dec. 31, 2015
Annual Incomes: U.S. Appraisers and AI Designated Members Source: Appraisal Institute; Dec. 31, 2015
Trends in the U.S. Valuation Profession
Source: Appraisal Institute; Dec. 31, 2015 U.S. Active Real Estate Appraisers 110000 100000 90000-19,650-20% 80000 70000 60000 50000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total 93575 98450 95750 92750 90500 86800 83400 81050 78800 76800
Benefits of Being an Appraiser Flexibility in work hours Potential for high income Satisfaction of solving difficult problems Low start-up costs Run a business
Recruiting Future Appraisers Working with master s degree real estate programs in the United States Approximately 12 programs nationwide
Tools for Future Appraisers Textbooks Qualifying education Networking Mentors/advisers Trainee opportunities Technology
Technology s Impact on Appraisers Real estate valuation is among many professions affected by technology. Appraisers must be proficient in many types. Appraisers need to be able to adapt.
Technology s Challenges Appraisers are competing with automated valuation model programs. No computer program can replace the judgment and reasoning of an experienced professional.
Technology s Opportunities Big data opens doors. New software can help appraisers work faster and smarter.
Advantages of Technology for Appraisers Developing technology can help appraisers: Save time Make performing a function easier Produce higher quality results
Learn About Tech The best way to adapt to new technology is to learn what s available and how to use it. The Appraisal Institute offers webinars to help appraisers adapt to new technology.
Technology is a Supplement, Not a Replacement Technology can t substitute for: o Education o Experience o Peer Review Use technology as a supplement to the tools and education that develop competency.
AI Annual Conference Scott Robinson, MAI, SRA, AI-GRS 2016 President Appraisal Institute Global Valuation Opportunities and Challenges July 26, 2016 30