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.

Going around again, and again . . .

Recently, I have been enjoying the use of a roundabout in Chattanooga, Tennessee just east of Interstate 75.  As an appraiser, primarily in litigation support for eminent domain, I have been bidding on small Georgia DOT right of way appraisal acquisition projects for roundabouts in North Georgia.  So my worlds have collided - but not literally thank goodness.

Originally, I thought it was crazy.  I have driven in Southern Germany in the roundabouts and the folks there get it.  Not as much here in the states however.  But, after using this particular location in East Tennessee in the past couple of weeks, I find I am becoming accustomed to it, and actually like not having to wait for the light - only the traffic.

Good call GDOT!

Georgia & Tennessee are not the only states implementing this!

How to determine if and how much impact to value?

It is always a challenge to consider the impact a proposed road widening will have on a property. Sometimes designs are amended when the view on the ground makes an impact quickly discernible. But how do you know what impact, if any, there is to value?

After thorough analysis and review of the relevant literature, sometimes simple is better. If we are taking 20% but that reflects 1/2 of a businesses display space, then the impact is likely closer to 50% than a quarter of the value.