1. Diversify Your Practice
Valuation Consulting
A Primer:
Diversify Your Practice
Through Consulting
P. Barton DeLacy, MAI, AI-GRS, CRE, FRICS
DeLacy O’Dwyer Realty Advisors
DeLacyConsulting.com

2. Past as Prologue: 40 years of practice:
began as residential appraiser trainee at a savings & loan
Commercial fee appraiser, firm owner 15 years in Portland, OR
Corporate side, 15 years :
Big 6 accounting firm
Cushman & Wakefield, CBRE
Moved to Chicago 10 years ago
Founded valuation consulting firm 2013
Projects in states every year
Specialties include Green Energy and Municipal
Valuation
Clients include lawyers, property owners, estates, developers
Seldom work for banks
No staff but work collaboratively with others

3. Learning Objectives: Explore 3 ways to build a better Business Model
(beyond banks and AMCs)
Grow your competencies –expand client base
Phase your engagements
Charge for your time, like other professionals

4. Growing Competency: Our core skill set is valuation. We are valuers.
“Appraiser” while synonymous, pigeon-holes too many of us.
We are not template jockeys
What are our prized attributes?
USPAP defines an appraiser as one who delivers valuation services in a manner that is
Competent
Independent
Impartial
Objective

5. Growing Competency:
These attributes necessary for asset based lending, but what else?
Are these talents leverageable?
These services are by no means the exclusive domain of the MAIs or Cert. Gens.
Residential Appraisers can be Valuation Counselors as well

6. Growing Competency: Who is your client and what do they need?
Valuation counsel might include?
Residential issues, consider:
Staging impacts on sale price?
Home remodeling, what adds value?
Pricing, timing strategies
The white elephant question- what about:
the obsolete?
the redundant?
the vacant?

7. Growing Competency: Consider Valuation Counsel.
Simply: advice about value.
Not just what is the number,…. but:
Ask the so what question?
Why is the value important?
Connect the dots
How will it be used?
Who wants to know?

8. Growing Competency:
How you approach a problem to be solved is where you gain competence.  
USPAP says define the “appraisal problem.’
Why not just “define the problem.”
Maybe the client does not need an appraisal
What does the client really need?
A valuation-based question not the same as an appraisal request

9. Growing Competency:
Apply those attributes of the valuer to help resolve your client’s pain:
independence,
impartiality and
objectivity
with your market knowledge.
Do your homework and leverage your experience and judgment to solve a problem

10. Growing Competency:
Remember, you need not be confined by geography, property type or complexity.
You are a valuer first.
Every property is unique.
The client needs your methodical approach.
Do your homework- research will identify:
Data and comparables
Economic trends
Associated professionals knowledgeable in a particular market sector

11. Expand Your Client Base:
So who might ask these questions? (hint: some might call them clients)
Property owners
Their lawyers
Their accountants
Their relatives (or heirs, or ex-spouses, or creditors…)
Property managers (or tenants)

12. Expand Your Client Base:
What are the Valuation Counsel Services you might offer?
Litigation support (does not necessarily entail testimony)
Impact studies (often necessary for zone changes)
Market rent analysis
Property tax counsel
Due diligence (prior to a sale)

13. Phase your Engagements
When applicable:
Disputes of any sort
Feasibility
Tax Appeals
Due diligence
What if?

14. Phase your Engagements
Phase I: Diagnostic stage
Test client claim
collect a retainer
inspect, review, analyze data
Communicate findings
Phase II: Write draft report (flat fee, hourly)
Phase III: Go on the meter
Follow-up phone calls, meetings
Depositions
Expert testimony

15. Phase your Engagements
How to get engaged?
Letter of engagement:
Include your understanding of “appraisal problem”
State proposed Scope of Work
Describe deliverable
Identify fee agreement
Identify hourly rates
Attach signature page
Execute via

16. Consulting Deliverables
Oral or written report
Recite scope of work:
What were you asked to do?
Describe what you did
What were your findings?
Conditions
Range of values
Any Recommendations?

17. Letter of Engagement

18. Letter of Engagement

19. Letter of Engagement

20. Charge for your Time: Protocols: Fixed fee v. hourly v. contingent
When to charge for developing scope
Contract language:
alert client on charges for post draft revisions and consulting
Make fees earned on receipt of drafts

21. Charge for your Time:

22. FINIS: QUESTIONS? pbdelacy@delacycre.com 312-670-1518 503-319-8086
P. Barton DeLacy, MAI, CRE, FRICS
DeLacyConsulting.com