We’ve Got A Long Way To Go!
Michael B. Lamb, MAI, SRA July 1st, 2008
In the 1930’s, in the depths of the depression, knowledgeable, intelligent, farsighted men organized what would become the two strongest, best known, and most professional appraisal organizations: The Society of Real Estate Appraisers and The American Institute of Real Estate Appraisers. When they were organized there was no intent, in my opinion, that they would become competitors, or that either group would seek to become the largest or more important professional appraisal organization. The men who gave birth to both of these excellent societies were genuinely and idealistically motivated to simply provide the very best professional appraisal service to the American public.
In the years immediately following, several other prestigious groups were formed, notably the American Society of Appraisers, the American Right of Way Association, the Independent Fee Appraisers, the Organization of Governmental Appraisers and others. All of these groups had various goals to achieve, but their primary aim was the same: To make real estate appraising a profession and all of their members true professionals.
Now let’s have the courage to call an obvious fact a fact. A whole passel of so-called appraisers licensed and certified have sprung up over the years, to a point where the public is overwhelmed and confused not knowing who’s the most qualified, because they all present themselves to be able to appraise or analyze all types of properties and real estate investments whether competent or not.
I don’t know why we can’t say what the problem is, because the public, our judges, attorneys, clients, lenders and knowledgeable laity, are saying it out loud repeatedly, writing letters about appraisers, the actions of appraisers, and reporting fraudulent, unethical and incompetent activities in ever-increasing numbers. And just what is it they are saying? The ones who only have a cursory knowledge of real estate and real estate appraising simply state that, based on their experiences, the letter designations don’t seem to mean a thing. The public does not seem to recognize the difference between a Designation and a State licensed or certified appraiser. They report that one seems to be just as bad as any other, and none of them seem to be real professionals. But the people who have a bit more sophistication, which include the courts, attorneys, lenders, and today the majority of the buying and selling public, are more articulate and more specific. They will mince no words and tell you that they know why most of the so-called appraisers came into existence during the past 15+ years: These johnny-come-latelies passed State exams with a minimal amount of training and dubious course work and have grown because it is relatively easy to get.
They have the minimum education requirements with very little work review, simply send in a log showing you have taken some courses and take a simple test; send in your money and you’ll be granted a license or certification. This plus the minimum continuing education courses of study are far below the rigid requirements that have made the Institute and like organizations strong, progressive, viable sources, and centers of professional growth and knowledge. The various designations of the Institute continuously demand hard work, dedication, additional study and a willingness to subscribe to a set of professional ethics and standards. Not the minimum standards found in licenses, certifications or designations COD by return mail.
I have talked about drawing in new members through our professionalism, ethics, continuing education, ability to make more money, and a strong, national, unified appraisal organization. These are different topics, but all inter-related and having a common goal. The public, our clients, are not talking about us as much as I would like, and I am afraid they don’t know who we are. I believe it is time for us to stand up, look at ourselves in the mirror of reality, and tell it like it is. The question is what are you, you, going to do about it?
Professional real estate appraising, in my opinion, is at a very serious stage in its history; we either go forward or backward. We are at a crossroad. We must take action. I believe we are in the position of the bicycle rider pedaling up a hill with a tiger on his tail: we can’t stop or stand still, and if we try to coast, we’ll go back downhill, so our only course is to keep on pedaling.
You’re right: Real estate appraising and real estate appraisers have come a long way since the middle 1930’s, but I believe the battle is just beginning, and we’ve still got a long, long way to go.