Technological development in the real estate valuation profession remains too focused on appraisal report forms and not attentive enough to market analysis, said appraisers, their residential clients, mortgage finance industry leaders, bank regulators and other participants May 24 at the Appraisal Institute Stakeholders Forum in Washington, D.C.
Hosted by the nation’s largest professional association of real estate appraisers, the event was themed “Residential Collateral Valuation: Synchronizing Client Needs and Service Delivery,” with the goal of understanding how appraisals are used by major stakeholders and how appraisal services can be supplemented, enhanced or changed to improve risk analysis.
“The Appraisal Institute was honored to host such an impressive and diverse group of participants to examine residential real estate valuation and to develop industry-driven solutions,” said Appraisal Institute President Richard L. Borges II, MAI, SRA. “The group provided valuable insight and high-level thinking on some of the most pressing issues facing real estate valuation today.”
Participants recommended that education providers continue efforts advanced by the Appraisal Institute to integrate statistical analysis and geo-spatial capabilities into appraisal and end-user education; to work with stakeholders to gain acceptance of technological needs; and to work with technology providers to bring cutting edge services to the real estate market.
The Appraisal Institute’s leadership in this area includes its related educational offerings, such as “Data Verification Methods,” “Practical Regression Using Microsoft Excel,” “Quantitative Analysis” and “Real Estate Finance, Statistics and Valuation Modeling.” The Appraisal Institute in 2009 published a book entitled “An Introduction to Statistics for Appraisers.” And a general session at the July 23-25 Appraisal Institute Annual Meeting in Indianapolis will include a panel discussion by data experts entitled “Real Estate Data: What Will the Future Behold?”
Other topics discussed by participants at the Appraisal Institute Stakeholders Forum included lender perspectives on residential mortgage origination; single-family agency issues; asset management and property disposition; and an update from the Mortgage Industry Standards Maintenance Organization, which maintains voluntary e-commerce standards for the mortgage industry.
“I really appreciate the participation of so many of the real estate industry’s top leaders,” Borges said. “Only the Appraisal Institute could bring together such an extraordinary group of professionals and lead such a thought-provoking discussion of crucial, timely issues.”
The Appraisal Institute hosts its Stakeholder Forum series in an effort to bring together divergent viewpoints on topics facing the real estate valuation profession and related professions in order to facilitate discussions leading to practical solutions that benefit real estate market participants.