Appraisal Institute 2015 Annual Meeting

Earlier this week, Ed Cline, SRA, AI-RRS and I were fortunate enough to attend the AI’s national conference in Dallas, TX.  The event featured more than 50 different education sessions, along with an exhibit hall, networking opportunities and awards dinner.  The education seminars covered a broad range of topics such as collateral underwriter, fractional interests, conservation easements, and going-concern analysis, and several seminars addressed current issues such as appraisal challenges of green buildings, on-site and off-site real estate valuation issues surrounding fracking, and drone technology and its impact on the appraisal industry.

The program started bright and early Sunday morning with the Regional meetings.  For me, the highlight of the combined region meeting was the summary of the historical and on-going issues with The Appraisal Foundation given by the national president, M. Lance Coyle, MAI, SRA.  There have been several meetings at the highest level of both institutions and at this point, have agreed to disagree.  There does not appear to be any form of reconciliation in the foreseeable future.  To read all about the history of the issues and where we stand currently, click here.

At the afternoon Region VI breakout meeting, Michael Mignogna was named 3rd director of our region for 2016.  Also, three people are rolling off the Region VI nominating committee at the end of this year. Please let me know if you are interested in serving on the region nominating committee for 2016-2017. Keep in mind that if you serve on the committee you cannot run for the positions to be elected.

Please join me in congratulating Jennifer Domnitz, SRA from our chapter who was awarded the Noeline Fuller Scholarship. Noeline Fuller, MAI, SRA was a chapter president who served on regional and national committees throughout her career. The Noeline Fuller Region VI Scholarship is a $500 voucher for Qualifying Education or Advanced Education, which can be used for any QE or AE course offered in Region VI.

The national conference officially began Monday morning with award-winning National Geographic magazine photographer and Academy Award-nominated motion picture director Dewitt Jones.  An amazing speaker, Mr. Jones spoke about his belief that we should celebrate what’s right with the world. He told a story that his father told him when he was a young boy.  A priest came upon two men both hunched over and working hard.  He asked the first man what he was doing and the worker barely looked up and gruffly said “I’m cutting stone.”  The priest moved on to the second worker, asked him again what he was doing and the worker looked the priest in the eyes and with a huge smile said, “I’m building a cathedral.”  It’s all about your perspective.

The other general session speakers were Edward J. Pinto, American Enterprise Institute resident fellow and co-director of AEI's International Center on Housing Risk; and Susan G. Talley, an attorney at Stone Pigman Walther Wittman L.L.C. in New Orleans and co-chair of the firm's Real Estate, Finance and Construction Practice Group.  Additionally, eight appraisers were honored during the awards dinner : John P. Fredrickson, MAI, SRA; Jerome Haims, MAI, SRA; and Richard A. Stephens, MAI, SRA, AI-GRS, were honored with the Lifetime Achievement Award and Michael V. Tankersley, MAI, SRA, AI-RRS, received the Outstanding Service Award. President's Award recipients were Kerry M. Jorgensen, MAI; Ruth A. Kelton; R. Wayne Pugh, MAI; and Ken P. Wilson, MAI, SRA. Read more about the award winners.

Next year’s conference will be held in Charlotte, NC, July 25-27, 2016.  I would highly recommend attending!

Author: Sara Gaskill, MAI, AI-GRS, President, Pittsburgh Metropolitan Chapter of the Appraisal Insitute

Longtime AI Member, Terry Camburn, Passed Away

Our condolences to the Camburn family on the passing of Terry. He was a longtime member of the Appraisal Institute and owner of Omni Evaluation Services, Inc. His family is in our thoughts.

New Appraisal Institute Form Helps Analyze 'Green' Commercial Real Estate Features

The nation's largest professional association of real estate appraisers today released a form intended to help analyze values of commercial buildings' energy efficient features. It is the first of its kind intended for appraisers' use.

The Appraisal Institute's Commercial Green and Energy Efficient Addendum offers a communication tool that lenders can use as part of the scope of work. The addendum also assists investors in communicating the construction features of the property that impact income. Appraisers, builders, energy modelers, green certifiers, architects and investors should use the addendum even if a property is not certified green by a formal certifying organization but does possess green features. The water and energy efficient features are key to a higher net income and appraisers should take care to identify these features.

"The market has many different ideas of what makes a property green, and this addendum will assist in understanding actual green features," said Appraisal Institute President M. Lance Coyle, MAI, SRA. "After the construction of a building, the construction features are often forgotten and the blueprints and specifications are often misplaced or overlooked."

The addendum can be completed in its entirety, or qualified individuals can use only the pages that apply. Appraisers are required to have sufficient knowledge of these features to review the addendum completed by others and deem it credible to meet Uniform Standards of Professional Appraisal Practice standards for work relied upon by others.

The Appraisal Institute long has been the leader in green valuation. In addition to its Commercial Green and Energy Efficient Addendum, the Appraisal Institute has demonstrated its leadership in green and energy efficient valuation in many other ways.

• Since June 2008, the Appraisal Institute has offered nearly 450 individual education programs on green and energy efficient valuation, and more than 6,200 attendees have participated. 
• Two Appraisal Institute members contributed to a landmark study released in January 2015 by the U.S. Department of Energy's Lawrence Berkeley National Laboratory that found that home buyers consistently have been willing to pay more for homes with host-owned solar photovoltaic energy systems. The eight-state, 12-year study produced the most authoritative estimates to date of price premiums for U.S. homes with PV systems.
• At the request of appraisers' clients, in April 2014 the Appraisal Institute expanded its Valuation of Sustainable Buildings Professional Development Program's online registries of residential and commercial appraisers to include everyone who has completed the course.
• The Appraisal Institute released a new book, "Residential Green Valuation Tools" by Sandra K. Adomatis, SRA, in April 2014. AI previously published "An Introduction to Green Homes" by Alan Simmons, SRPA, in 2010.
• The Appraisal Institute and the Institute for Market Transformation issued guidance in January 2014 on valuing green and energy efficient buildings.
• In October 2013, the Appraisal Institute partnered with the Colorado Energy Office to provide an analysis of the impact of solar PV systems on the home-buying process. The study sought to better understand the impact, if any, that solar PV has on the sales transaction process.
• In March 2013, the Appraisal Institute released an update to the Residential Green and Energy Efficient Addendum, the first form of its kind intended for appraisers' use. It is an optional addendum to Fannie Mae Form 1004, the appraisal profession's most widely used form for mortgage lending purposes that allows appraisers to identify and describe a home's green features, from solar panels to energy-saving appliances.
• In February 2013, the Appraisal Institute added a new solar course to its Valuation of Sustainable Buildings Professional Development Program, which educates appraisers on the intricacies of valuing high-performance residential and commercial buildings, and consists of four courses: "Introduction to Green Buildings: Principles & Concepts;" "Case Studies in Appraising Residential Green Buildings;"  "Case Studies in Appraising Commercial Green Buildings;" and "Residential and Commercial Value of Solar."
• In January 2012, the Appraisal Institute announced its support for PV Value, a spreadsheet developed by Solar Power Electric and Sandia National Laboratories that assists appraisers and others seeking to establish the value of a property's solar-powered features.
• The Appraisal Institute in October 2011 sponsored a report that outlined ways to finance $150 billion per year in energy efficiency projects that yield double-digit financial returns. "Energy Efficiency Financing: Models and Strategies" by Capital-E and partner organizations found that within 10 years, investment at this level would save U.S. businesses and households $200 billion annually and would create more than 1 million new full-time jobs.
• In October 2011, the Appraisal Institute endorsed the federal Sensible Accounting to Value Energy (SAVE) Act, which would improve the mortgage underwriting process by ensuring energy costs are included. Sponsored by Sens. Michael Bennet, D-Colo., and Johnny Isakson, R-Ga., the SAVE Act would instruct federal loan agencies to assess a borrower's expected energy costs when financing a house. IMT also is among the bill's supporters.
• The Appraisal Institute contributed to the Green MLS Tool Kit, issued in April 2010. The tool kit was created to help Realtors add a green initiative to their local multiple listing service. The tool kit provides guidance on enhancing data in the MLS, empowering appraisers to make well-supported comparisons, analyses and adjustments.

Download the Appraisal Institute's 10-page Commercial Green and Energy Efficient Addendum.

The Appraisal Institute is a global professional association of real estate appraisers, with nearly 21,000 professionals in almost 60 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Individuals of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA, SRA, AI-GRS and AI-RRS designations. Learn more at www.appraisalinstitute.org.

SOURCE Appraisal Institute

Representative Stevenson Honored at 2015 Installation Banquet

The Pittsburgh Metropolitan Chapter of the Appraisal Institute presented Representative Dick Stevenson with Honorary Membership to the Appraisal Institute for his commitment to the profession. Representative Stevenson, a Pennsylvania Certified General Appraiser, was a champion for the appraisal profession during his tenure in the Pennsylvania House of Representatives.

“Representative Stevenson has been an advocate for the appraisal profession, and his Honorary Membership to the Appraisal Institute stands as a testament to his commitment to maintaining the integrity of the profession,” said Sara Gaskill, chapter President.

As a member of the House of Representatives, Representative Stevenson was instrumental in defeating a bill that would have allowed real estate brokers and salespeople to provide BPOs (Broker Price Opinions) outside of the real estate brokerage context, and he was the author and prime sponsor of the appraisal management legislation that is now law in Pennsylvania. He also authored and sponsored House Bill 1600 which was designed to bring Pennsylvania into compliance with the 2015 minimum criteria for the Appraiser Qualification Board.

Representative Stevenson retired from the 8^th Legislative District at the end of session in 2014. 

Dan Bradley, SRA Receives Barone-Berman President's Award

Congratulations to Dan Bradley, SRA! He was named the 2015 Barone-Berman President's Awardee.

Dan served on the Pennsylvania State Board of Certified Real Estate Appraisers in 2004 and was reappointed in 2008. During his tenure on the board, he was instrumental in several board regulatory actions, including revising the Board's regulations to adopt the 2008 AQB Criteria, changing the old requirement that mandated that supervising appraisers had to accompany assistants on all inspections, and implementing the appraisal trainee license. 

Dan is a AQB-certified USPAP Instructor and holds the SRA and CDEI (Certified Distance Education Instructor) designations. He is director of online curriculum at McKissock Education. 

2015 Officers for the Pittsburgh Metropolitan Chapter of the Appraisal Institute

Congratulations to the 2015 Chapter Officers! 

Sara M. Gaskill, MAI, AI-GRS - President

Ed Cline, SRA - First Vice President

Terri Kulzer-Love, SRA - Second Vice President

Thomas R. Frederick, CREA, SRA - Secretary/Treasurer

Congratulations!

Several members of the Pittsburgh Metro Chapter of the Appraisal Institute recently earned the MAI and AI-GRS designations. These achievements require rigorous requirements relating to education, testing, experience, and demonstration of knowledge, understanding, and ability.

MAI Designations:

Michele Allerton

Mickey Droney

• Michele Allerton - Director, Integra Realty Resources
• Mickey Droney - Director, Integra Realty Resources
• John Dudash, SRA - Certified Pennsylvania General Appraiser, Howard Hanna Appraisal Services

The MAI designation is earned upon the successful completion of a graduate-level curriculum, which includes a written demonstration appraisal report and attaining 4,500 hours of qualifying experience beyond state certification requirements. Designees must abide by both the appraisal profession’s Uniform Standards of Professional Appraisal Practice (USPAP) and the Appraisal Institute’s Standards of Professional Practice and Code of Ethics. 

AI-GRS (Appraisal Institute – General Review Specialist)

• Sara M. Gaskill, MAI - Principal, Gaskill Review Services, LLC

The AI-GRS designation is for professionals who recognize the critically important role that appraisal review plays in risk management and mitigation for many clients/users of appraisal services. This designation is earned upon the successful completion of course work, examinations and specialized experience requirements.

Please congratulate these individuals on their spectacular achievements!