Tennessee Law

Today as I was reviewing the Tennessee Code Annotated on LexisNexis, I got quite the chuckle.

The real estate appraisal code section for Tennessee falls between . . .

Chapter 38 Tattoos and Body Piercing
Chapter 39 State Licensing and Certified Real Estate Appraisers Law
Chapter 40 Industrial Hygienists


Does anyone else find that completely humorous?

And in other news, what is an industrial hygienist?

Education v. Experience, Course Review in Light of some Time to Practice

Ok, so my credibility is limited with the experience part since I have only been at TN DOT 60 days. However, I have been an appraiser under review for 27 years, and also have reviewed other projects and individual appraisals in the past. I am finding that my personal practice is certainly enhanced by these experiences and this education!
I decided today to go back to my Appraisal Institute (AI) class notes from about six weeks ago in Buffalo (thanks Western NY/Ontario AI Chapter Members for showing me a great time by the way!). I was fortunate to have Rick Borges, MAI, 2013 AI President as the instructor, and coincidentially delighted to have Tony Sevelka, MAI as my tablemate; particularly since he wrote that Larger Parcel article on which I am relying heavily for my next article on Larger Parcel or Economic Units.

This Institute class was a one-day seminar entitled "Appraising the Appraisal: Appraisal Review - General", which I heartily recommend for new reviewers and as a good refresher for long time practitioners as well. There were a number of wonderful ideas about the process of appraisal review and some great 'best practices' suggestions.

The first that jumped out at me was begin the review assuming the appraiser has done a terrific, credible job - they made a 100 on this report. From there, minor errors and inconsistencies should be just that and treated as such. Unless, of course, they pile up to create a question of credibility.

The second, checklists are a great way of checking up on ourselves as reviewers. Just like appraisers, we are human and forget items and make mistakes - often because we are so close to the data and analysis. Put the review/appraisal down, come back later, and use that handy list found on page 209 of the 2010 text, "Appraising the Appraisal, the Art of Appraisal Review," by Richard Sorenson, MAI.

Third, and I really like this one because I am such a fool for more education, consider the review a learning process. Use this process to reinforce our knowledge and understanding of USPAP, FIRREA, local agency or company appraisal guidelines, professional organization standards, or in federal eminent domain transactions, the Yellow Book.

The fourth item was a recommendation to use an Extraordinary Assumption (that is the one where you assume something to be true when you do not know for certain, and if different than assumed it may affect the credibility of the results of your report) with respect to the appraiser's factual data about the subject and comparables. What do you think? I thought it was a grand idea - more fully communicating the reviewer's reliance on that data we did not generate or verify.

The fifth, more general, idea was to evaluate the information presented by the appraiser as to its authenticity, consistency, pertinence, and sufficiency of type and documentation. Consider whether the analysis was objective or subjective; did the appraiser write about the positives and negatives for the property and market or does it read like a marketing brochure? Is this data within the subject 'market', however defined by the appraiser, and can you, as the reviewer, see the subject fitting into that market as a reasonable substitute?

Finally, my person best take away from the information, let us all remind each other about that three legged stool of appraisal methodology; the Sales Comparison Approach, the Income Approach and the Cost Approach. They are interdependent and provide good information at every turn. Let us not be afraid to use all three.

Remember a review appraisal report is an opinion about the quality of another appraiser's work. So be professional, engage in good communication, and review the appraisal report, not the appraiser. Especially remember the golden rule, to treat others as you would wish to be treated.

Awareness

One of the most amazing things I expected, but did not really understand (as with most new experiences) is how this new gig is changing my view.  Sometimes standing in a different place allows us to see new things.  As a review appraiser, I assumed I would see a number of different appraisal reports, styles of writing, and varying implementation of analysis techniques.  What I did not count on was how it is changing me.

I am privileged to have been given this opportunity to learn.  There are some amazing real estate appraisers in our East Tennessee/Chattanooga market that do a terrific job of analyzing markets and communicating those analyses.  Often appraisers suffer limited market evidence about values, and  particularly in the past five to eight years.  When a market declines, lenders are more reticent to make loans, fewer purchasers make buying decisions, and tenants move less.

As appraisers, we have therefore been challenged with fewer data points to analyze. In the case of these appraisals I am reading now for condemnation cases, the appraisers have stepped up to the plate. They provided an unexpected level of clarity through their analysis of markets and market evidence.

I am grateful to be able to read these reports and be exposed to what these appraisers are modeling in their reporting.  I intend to implement what I am learning.

Note to self:  Education without action is simply entertainment.

Guvmnt Job

So we all have expectations, life is full of them until we become enlightened (which I am working on but NOT yet there of course).  I have been very fortunate to have many cities, counties, several state and federal agencies, and one big state agency (GDOT) as clients over my 25+ odd years.  I always imagined working INSIDE would be like the basement of the many GDOT offices around Georgia.

However, Perspective is Everything.

About four weeks ago, after much wailing, moaning and gnashing of teeth, I agreed to take a position as a review appraiser for District Two of the Tennessee Department of Transportation.  There was soooo much going for it - great boss, great boss's boss, location in CHA, they pay me regularly, more experience as a review appraiser, learning the TN D2 market, meeting new appraisal professionals, and so on.  There was also a lot about it that worried me - not hanging out with Katherine and Thor every day, worries about Maggie at school and me not available, a cubicle (for crying out loud), lots of rules, TONS of forms (and I do mean tons), potential loss of time for my appraisal practice in GA, you get the picture.

However, TDOT sort of hunted me down.  Then numerous people whose opinion I highly regard suggested it was a terrific opportunity and a great next step in my appraisal career.  So when TDOT finally called to make the offer, I slept on it and said yes!

So far I have found that, no, my cell phone does not work inside the building, and yes I am in a cubicle almost every day.  BUT, everyone in my new Region Two Right of Way office seems to be dedicated and professional in their respective jobs.  The appraisers I have met are knowledgeable, humble, and entertaining, and I can see I will learn a lot from them.  My boss is hardworking, helpful, supportive, and encouraging.  TDOT is even considering adopting the Christian Thor Thoreson method of photographing comparables (first take a picture of the plat/location map of the comp and THEN take a photograph(s) of the comp - way easier to identify three weeks later in the office - particularly when it is land).

And best of all, I am ALREADY learning how to be a better valuation expert.  I have implemented in my own appraisal practice things this week that I learned  and appreciate very much the opportunity!

Thank you Universe for opening the door.

sometimes there is value in something unexpected

Today I began a new adventure.  One telephone call sometimes leads to so much. Since my valuation career began in 1986 with Harvey Hooks & Associates, I have only REALLY been self-employed. (In the interest of full disclosure, I did a gig for a local Chattanooga brokerage managing for 12 months, but not as an appraiser).

About eighteen moths ago, I spoke with a much respected colleague and mentor about my next step as an appraiser. I had done some review work, but believed that further experience and more full time review appraising would make me a better appraiser and expert witness.  I asked him how I might go about that.

Fast forward to a conversation with the right of way procurement folks at Tennessee DOT and with their encouragement, I applied for a job, in Chattanooga of all places, as a staff review appraiser.  My major concern was continuing my appraisal and litigation support practice. They said 'no problem' and offered me the position.

One nights' sleep was all I needed to accept. I look forward to this new challenge. Everyone I have met so far at TDOT has been great!  

I am grateful for the opportunity. 

Measure what is measurable, and render measurable what is not

This summer, our family was VERY fortunate to have been able to travel it Italy, and live for about five weeks south of Florence in a little town called San Donato in Poggio.  Needless to say, it was lovely in so many ways.

One of my favorite things after taking the bus to Florence many days, was the "Galileo" Museum.  I think they must call it this for better branding and PR, but truthfully it is a wonderful place full of Galileo and much much more.

As any good touristica would do, I purchased a t-shirt.  This one speaks to my heart as a total numbers geek, and I wear it this morning for the good mojo to find billboard site sales (an endeavour that in the past two attempts has been fruitless).

I like the sentiment, as an appraiser, broker and consultant.  Measure what is is measurable and render measurable that which is not.  I think he means if we cannot measure it, we have only not yet devised a way.  And, keep trying until you figure it out.  

I am taking it as a personal message from Galileo Galilei.

Dove è il valore?

For the past five weeks, our family has lived just south of Florence, Italy in a small town named San Donato in Poggio.  Returning yesterday, with twelve hours of flying and about nineteen of travel time, I am tired, excited, sad, happy, and reminiscent, already.

We stayed in a wonderful apartment, huge by Italian standards, with three bedrooms and one full bath, a balcony patio with tiled floors, a full kitchen WITH dishwasher, and even a clothes washing machine.  The people in town were very lovely and warm and we enjoyed meeting them all.

It was very interesting to me to see that even in a city so busy as Florence in the Tuscany region, with about 370,000 people (which swells to almost 2million during summer season), there are quite a few "affittasti" or available spaces to rent.  Also, many of the signs say "negoziabili" although I noticed this one more in Biella, a city of about 45,000 in the Piedmont region.

There were, fewer than I would have imagined, "immobiliare" or real estate offices.  Prices, however, quoted in Euros seemed reasonable until I did the current math, about $0.75 US dollars to the $1.00 Euro.

I guess if I want to live there, I will need to save a bit of cash.  It was really lovely!!  (and I particularly like this one, which does not even quote a price until you apply - in other words, if you have to ask . . . )

The value today is . . .

So in the course of my business, I often have to ask for help from other professionals.  Today when working in a Georgia County that has limited historical plats available online, for example, I contacted a surveying company in that market, for the second time in a matter of three weeks.  It is a shot in the dark of course, most people are nice, but busy with their own affairs and clients, etc.  However . . .

both Larry Evans and Kirby Holton at Statewide Surveying in Douglas, Georgia were helpful, and very quick about it.  No days and days of telephone calls, no cajoling, whining or begging (on my part), they simply assisted me the very best they could - with great results.  I got exactly what I needed to do my valuation analysis in the best way possible, to serve my client more fully.

Today the value was in the details of kindness and assistance.  Thank you gentlemen.


(p.s. I hope you enjoy your prize on Thursday!)

USGS maps

Ok - so I am certainly a geek, and when it comes to maps, I am utterly smitten.

"Hi, my name is Christina," I say.

"Hi Christina," the chorus replies.

"I am a mapaholic and have been my entire life . . ."

At least that is the joke I tell to some folks.

I am evaluating some large land tract sales in Cobb County Georgia, and decided to head back to my trusty USGS 1:24,000 maps of old - we called them quadrangles.  I used to drive in to downtown Chattanooga, taking my life in my hands, park on Broad Street and go into the Map Store.  A wondrous place for certain.

Today, I found that there is a web site (of course) for the USGS - that is United States Geological Survey - where I can search and download, in PDF format (thank you Adobe), current and historical topography maps for the entire United States.

I am floored, and happy, and able to evaluate those sales a bit more thoroughly.  

I do love my work.

Brave ideas!

I love when a brave idea is undertaken by a brave soul and changes my life in such a positive way.  Apparently in 2005, when I was slogging through with just a pc laptop and brick sized smart phone (that was not really all that smart), there was some brilliant engineer who had a better vision of the future.  One that a brave man with lots of resources agreed to adapt and adopt and manufacture.

The iPad has again revolutionized my business the way that my first Compac laptop did in about 1989.  It weighed a ton (ok, maybe six or seven pounds) and had to be plugged in almost all the time.  But it allowed me to be in a courthouse reviewing deeds while entering them on a spreadsheet - saving that double entry time of writing them down and entering them on a desktop.

The leaps here with the iPad have been even more dramatic (or the older I get the more easily amused I am).  With GPS and immediate mapping feedback, the ability to look up sales data on the fly - out in the field, sending an email in an instant, responding right away to a client, and a host of other cool applications (yes that is the longer version of APP) make it a game changer.

When I saw this link on Facebook today, I just wanted to say, outloud, that we always need to honor and support and respect that kind of innovation and willingness to risk.  What if Jobs had not taken that leap or that engineer had not bothered to create this design - time and energy and financial risk that may not have returned anything.  Congratulations, thank you, and keep up the good work!

People really are mostly kind

On of the things that still today amazes me after 27 years in this business and more than 20 appraising primarily for eminent domain is that the people whose property is proposed for acquisition are almost exclusively kind and polite.

Most often, particularly in rural areas, a road widening or new highway is not what they want. Even more, when a roadway widening has been planned on and off for 10, 20 or even 30 years, owners have delayed plans, improvements and sometimes life decisions waiting for the project.

Sill, even this very morning, most people are truly kind and polite. And I really appreciate that!

Value of Connection aka Who Gets a Seat at the Table

One of my primary clients is undergoing a transformation of their appraisal purchasing process.  Currently, all the approved, qualified appraisers are invited to appear for a bid meeting.  Then, the ones who appear review the requested appraisals, consider their current workload, the review appraiser assigned to the project, distance to the properties, current information available about market data, ease of working in a particular county or counties, and then if willing and able, provide a fee estimate for completing the appraisal process and preparing the written reports.  The most efficient and qualified appraiser with the lowest fee is then given the contract.

 The new process will provide that 14 companies or individuals around the state will hold up to a five year contract to provide these same appraisals and written reports on a pre-set fee menu.  It is known as an indefinite delivery indefinite quantity contract (IDIQ).  Yes, when the original information came out, I had to look that up, and do a bit of research about the type of contract.  These new 'prime' contractors will be responsible for hiring the appraisers and specialty contractors to provide services in a timely, competent, and consistent manner.  Where I am currently 1 of 146 approved appraisers or 1 of 64 approved to do more complicated work, and there are 26 approved specialty contractors, the new process limits to 14 the number of folks with direct control over how appraisals and specialty contracts are assigned.


Each of those 14 'prime' is to have at least 10 approved appraisers on their list for their proposal submission to the client.  So theoretically, there would be 140 appraisers of the 146 that would 'survive the cut'.  In reality, we all have folks we like working with because of their work ethic, attention to detail, and professionalism.  Grateful I am to have been asked to join a number of teams.  It will be interesting to see how this all pans out.  I hope to get a seat at that table.