CPD 132 - More than Just Form-Filling: Creating Professional Residential Appraisal Reports
Pre-requisite: Students require a thorough understanding of appraisal theory and practices for residential properties. BUSI 330 or CPD 130 or equivalent are recommended.
Note: This course is available by webinar only; there is no self-study offering. There are no associated readings for this course.
Residential appraisers … pause for a moment and reflect on your work … and now consider these excerpts from a provocative appraisalbuzz.com article:
"Are you form filling ... or communicating? If you are not communicating, then your … “form filling” abilities are functionally obsolete, out of date, and no longer needed. To get paid more, you have to make yourself worth more …. Do something positive about your problem, increase your skills and knowledge and make more money.”
The author of this excerpt differentiates between true valuation professionals and those who have “only enough dated knowledge to fill out an appraisal form and not enough skill to analyze the transaction and meet today's needs."
Form appraisal reports can be a major advantage in residential appraisal – facilitating an expedited, summarized report, while at the same time ensuring that both Standards and client expectations are met. Clients appreciate the standardized format, so they can quickly find the information they need. Appraisers like the tidy, self-enclosed, and comprehensive format -- fill in what’s required and get ‘er done.
But for all these benefits, the forms can also be abused, when they become “fill in the blank” exercises without adequate due diligence. The forms were created in line with the AIC standards, but it is ultimately the appraiser’s responsibility to verify that his or her appraisal report conforms to professional appraisal practice.
Of particular concern is where the form becomes a substitute for providing truly professional work. If the form constrains the appraiser from showcasing their knowledge and expertise, then a powerful tool may become a source of lost business opportunities.
This course explores how residential appraisers can use appraisal forms to their full advantage, yet still produce professional results. In light of challenges from AMCs and AVMs, residential appraisers must re-think the “value” relationship – in terms of both the credibility of their market value conclusions and the value they offer clients. More detail in appraisals helps both goals -- not only do you avoid difficult questions later, but you also produce a more detailed, more professional appraisal that may better address your client’s needs and thus better support your desired fees. Win-win! This webinar explores the common areas for difficulties in residential form reports and suggests practical solutions to avoid these issues.