How American Valuers and Educators Ensure a Pipeline of Professional Excellence May 13, 2016 Scott Robinson, MAI, SRA, AI-GRS 2016 President Appraisal Institute TEGoVA Spring Meeting

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

Type of Services Provided Support for real estate lending decisions Litigation support Property tax appeals Corporate accounting/portfolio valuation Consulting and advisory services

Characteristics of the U.S. Appraiser Population

Time in the Valuation Profession Source: Appraisal Institute, 2014

14 Age of U.S. Valuation Professionals Source: Appraisal Institute; Dec. 31, 2015

15 Education Level of Valuation Professionals 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

U.S. Active Real Estate Appraisers -19, % Source: Appraisal Institute; Dec. 31, 2015

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.

How American Valuers and Educators Ensure a Pipeline of Professional Excellence May 13, 2016 Scott Robinson, MAI, SRA, AI-GRS 2016 President Appraisal Institute TEGoVA Spring Meeting 28