Save the Date - 2015 Annual Installation Banquet

2015 New Year celebration (christmasstockimages.com) / CC BY 3.0

Save the date for the 2015 Annual Installation Banquet! The banquet will be held at the Circuit Center on January 16.

For information or to register, please contact Kari at 412-563-1900 or karib@realtorspgh.com.

CALL FOR PRESENTATIONS

Appraisal Institute Annual Meeting
July 27-29, 2015
Sheraton Dallas | Dallas, Texas

The Appraisal Institute is seeking proposals for presentations for its 2015 Annual Meeting in Dallas.

AI Connect is looking for highly skilled speakers who can address issues and topics of interest to the valuation profession. The Appraisal Institute highly values as presenters appraisal client representatives, government agency officials or leaders of real estate industry organizations.

Submissions must include bios, photos and contact information for all presenters and must include presentation title and abstract. All presentations will be assigned to one or more of the following tracks:
  
COMMERCIAL RESIDENTIAL GENERAL INSTITUTIONAL CLIENT ATTORNEY CLIENT  
For more information on the types of sessions selected for previous AI Connect conferences, please go to: http://www.appraisalinstitute.org/about/appraisal-institute-annual-meeting-archives/

Preference will be given to proposed presentations that highlight achievements or opportunities for the profession, address client issues or concerns, raise awareness about best practices or attempt to address a pressing issue or problem facing the profession. Presentations can be local, national or international in scope.

Presenters will receive complimentary registration for the day of their presentation. Presenters who plan to attend the entire 2015 AI Annual Meeting will receive a discount on registration; travel expenses will not be covered. 

All applications must be received by Wednesday, December 31, 2014. 

Questions? Contact Jasmina Nuhbegovic; 312-335-4184; aimeetings@appraisalinstitute.org. 

New Appraisal Institute Book Addresses Latest Methods for Valuing Contaminated Properties

A news release from the Appraisal Institute

Properties impacted by contamination raise challenging appraisal issues, according to a new book from the nation’s largest professional association of real estate appraisers.

 “Valuing Contaminated Properties: An Appraisal Institute Anthology, Volume II” published this week by the Appraisal Institute helps appraisers understand the history and development of widely recognized and generally accepted methods for handling assignments involving contaminated properties.

 “This book is a definitive compilation of accepted appraisal knowledge on an important topic,” Appraisal Institute President Ken P. Wilson, MAI, SRA, wrote in the book’s foreword. “This updated anthology will help appraisers stay current and look toward a future of evolving strategies for dealing with environmental contamination.”

 “Valuing Contaminated Properties: An Appraisal Institute Anthology, Volume II,” edited by Richard J. Roddewig, MAI, CRE, is divided into chapters covering 10 different topics related to contamination. Practitioners will learn about recent trends in contaminated properties including:

• the accepted understanding that contamination’s impact on value is largely temporary;
• the shifting focus from appraising industrial and commercial source sites to appraising residential properties affected by contamination; and
• the increased availability of online sales data and the new emphasis on using more market data in contamination assignments.

“Valuing Contaminated Properties: An Appraisal Institute Anthology, Volume II” (ISBN: 978-1-935328-58-2) is a 503-page softcover book. It is available for $75 ($60 for Appraisal Institute professionals). Call 888-756-4624 or order online.

Take me out the ballgame

Earning your SRA or MAI designation is a process that requires extensive coursework, a number of exams and hours of specialized experience. For those candidates seeking designation, your advisor may quickly rise to the number one position in your phone. Advisors help the candidates keep the process in perspective, answers questions and provide support during the journey to designation.

Last week, advisors and SRA and MAI candidates met up for the Pittsburgh Pirates game. It was a great night with wonderful food, fantastic people and a win by the Pirates!

Thanks to Chapter President, Dennis Cestra, SRA, IFA, Howard Hanna Real Estate Services, and John Dudash, SRA, Howard Hanna Real Estate Services, and Clay Cassidy, MAI, Integra Realty Resources, for planning and hosting the event.

The next meeting for advisors and candidates is October 14, 2014 at the Club at Nevillewood. For information, please contact Kari at (412) 563-1900.

Appraisal Institute Unveils Standards of Valuation Practice

CHICAGO (Aug. 26, 2014) – The nation’s largest professional association of real estate appraisers today announced to global users of real estate valuation services the availability of its Standards of Valuation Practice. The SVP can serve as an alternative for valuation professionals where national or other standards are not required.

“This is a huge step forward for the real estate valuation profession,” said Appraisal Institute President Ken P. Wilson, MAI, SRA. “The Standards of Valuation Practice will provide a high-quality, straight-forward option for appraisers that is principles-based and not rules-based.”

The Appraisal Institute’s policy-making Board of Directors adopted the proposed Standards of Valuation Practice at its Aug. 7-8 meeting in Austin, Texas. The Appraisal Institute had sought input on the proposed Standards of Valuation Practice during three comment periods in the preceding nine months.

The Standards of Valuation Practice:

• Can be used as an alternative to the Uniform Standards of Professional Appraisal Practice or the International Valuation Standards when the use of USPAP or IVS is not required and the use of the SVP would be appropriate;
• Will serve as an alternative set of standards that could be used, not an additional set of required standards; and
• Will not supplant USPAP or other national standards.

“The SVP will establish a higher level of professional practice, engender public trust and facilitate the growth and advancement of the valuation profession,” said Wilson. “The SVP will recognize the broad area of practice of valuation professionals and the diverse needs of users of valuation services.”

Effective Jan. 1, 2015, Appraisal Institute Designated members, Candidates for Designation and Practicing Affiliates will be required to comply with either:

• The Standards of Valuation Practice, promulgated by the Appraisal Institute, and the Certification Standard of the Appraisal Institute; or
• Applicable national or international standards, and the Certification Standard of the Appraisal Institute.

The Appraisal Institute is the historic leader in establishing standards for the valuation profession. The Appraisal Institute’s two predecessor organizations, which unified in 1991, were among the first to establish standards for the valuation profession; the American Institute of Real Estate Appraisers created standards in 1932 and the Society of Real Estate Appraisers did so in 1936. AIREA and the Society regularly revised and strengthened their Standards over the decades that followed.

The Standards of Valuation Practice are one of three strategic initiatives the Appraisal Institute announced in October 2013. The Appraisal Institute said then that it would:

• issue proposed standards of valuation practice that could serve as an alternative for valuation professionals where national or other standards are not required;
• expand delivery of Appraisal Institute education, becoming more proactive in identifying and pursuing appraisal educational opportunities; and
• create a new certification organization to establish a future generation of cross-disciplinary valuation professionals and to enhance their marketability in a competitive job environment (which was accomplished with the May 2014 introduction of the International Center for Valuation Certification).

Read the Standards of Valuation Practice here.

Hitting the sticks

Thirty-six appraisers hit the sticks for the annual Appraisal Institute Golf Outing on July 28. It was a great outing despite the overcast sky and rain. Many thanks to Tom Frederick for organizing the outing. 

Understanding the New Role of the Appraisal in Commercial Banking and Going Concern Allocations - Buffalo, NY Program

Our neighboring chapter, Western NY/Ontario Intl, is hosting a one-day seminar and social in Buffalo. All are welcome. Details below. 

Date: 
Wednesday, August 6th, 2014 
Registration (Pastries/Coffee): 8:00 AM to 8:30 AM 
Seminar Begins: 8:30 AM 

Location: 
Larkin at Exchange Building 
726 Exchange Street – Suite 804 
Barton Room 
Buffalo, New York 14210 

Cost: (Includes Lunch) 

$175 (AI/State CE Credit w/Certificate) 

$40 USE PROMO CODE: No CE Credit 

(Bankers, Lawyers, Real Estate Agents, etc. OR Appraisers not requiring AI or State CE Credit – NO CERTIFICATE) 

REGISTER

Part I – Appraisal in an Evolving Banking Environment: 3 Hours 

Presenter: Adam A. Alessi, MAI, MRICS 

Chief Appraiser, First Niagara Bank, N.A. 

• A look at the post-2008 timeline for appraisal-related regulatory mandates and the response of the lending and appraisal communities; 
• Case studies of valuation and compliance issues impacted or ignored by the regulatory environment 
• First-hand accounts and perspectives of the realities of serving a borrowing base in this climate. 

Part II – Complex Properties: A Risk-Based Approach to Allocations and Investment: 4 Hours 

Presenter: Franz H. Ross, CBA, CVA, MRICS, 

Complex Asset Specialist, First Niagara Bank, N.A.

What are the unique characteristics of each complex property type? Discussion will include hotels, C-stores, healthcare properties, power plants, restaurant/banquet facilities, tank farms, data centers, golf courses, and other recreational properties. What special industry knowledge 

is needed to appraise each property type, and what unique metrics are applicable? 

• The premise for giving the greatest weight to a risk based/cost based asset allocation methodology;
• Attendees will receive the new ETEEM model, and be given instruction in its use; 
• Understanding the importance of asset allocation metrics such as cost approach data, market rents, lease coverage ratios, management fees and others; 
• Best practices in an income analysis that is universal to all income properties. 
• How to prove cap rates of “going-concerns” and of intangible assets using available BV data. 

Continuing Education
Approved for 7 Hours of Continuing Education by:

• The Appraisal Institute

Pending Approval for 7 Hours of Continuing Education by: 

• NYS Continuing Education 
• Pennsylvania CE 

Post Class Gathering/Social, hosted by the WNY/Ontario Chapter of the Appraisal Institute: 

Larkin Square – Filling Station 

Hors d’oeuvres and Cash Bar 

Live at Larkin featuring 

The Steam Donkeys and Shaky Stage

For more information please contact Yolanda Perez, Executive Secretary at 716-544-0497.