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.

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.