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    President's Message Feb 19, 2025

    President's Message

    Keeping You Informed

    One of my goals for the year is to keep members better informed. Members often write me with their concerns and I answer each one. I have also been posting responses to the most frequently voiced concerns on LinkedIn. Members most often ask about governance and operational matters. Transparency is a priority, and I want to ensure you have clear, accurate information on important topics like financials, membership trends, advocacy efforts, international travel and PAREA.

    Financial Transparency: Addressing Key Questions

    Some of you have asked about the $1.2 million deficit reported in 2024. Initially, a mid-year forecast projected a shortfall, which was later adjusted to $1.65 million through a formal accounting review. Our annual independent audit is underway, and I will share the results with you soon.

    Despite industry-wide pressures such as a declining number of appraisers and increased competition in education the Appraisal Institute remains financially stable, with sufficient reserves. We are actively adapting to these challenges through careful budgeting and resource allocation.

    As 2025 President, I remain committed to transparency:

    • I will continue providing clear financial updates.
    • The Appraisal Institute undergoes an annual independent audit to ensure accountability.
    • High-level financial summaries will be shared with members.

    Membership and the Future of AI

    While overall membership has declined, the number of Designated Members has remained steady from 11,584 in 2004 to 11,041 today. Most of the decline has been in the associate member category. This year, the Board approved a change so that we are all Members. The associate member category is increasing, and I look forward to seeing more growth as student affiliate members become more involved. Ensuring a strong and growing membership across all categories is critical to our future.

    We are advancing strategic growth initiatives by:

    • Expanding outreach to college students and associate members.
    • Enhancing member value and business opportunities.
    • Adapting to industry changes while supporting appraisers at all career stages.

    Advocating for Residential Appraisers

    I recognize the challenges residential appraisers face, from regulatory shifts to technological disruption and fee compression. In response, we are:

    • Promoting SRA-designated appraisers to key industry stakeholders.
    • Opposing property data collectors and alternative valuation models that undermine quality.
    • Advocating for fair compensation through legislative efforts.
    • Educating policymakers and the public on the appraiser’s critical role in market stability.
    • Providing training and support to help appraisers navigate changes.

    Registration for our first Legislative Day will open next week, and I encourage you to attend and help elevate our voice on Capitol Hill! This will be held on May 14-15 in conjunction with the Leadership Development and Advisory Committee meeting. I could not be more excited about it. Leaders from other organizations are planning to join us - the louder our voice the greater chance we have for success. The registration link will be available soon and I will also post it on LinkedIn.

    Travel & Expense Policies
    International travel policy and priorities are frequent topics raised by members. We have written travel policies to ensure prudent, cost-conscious choices. Typically, economy or economy-plus is the standard for domestic flights. For international flights—especially over 20 hours or with tight meeting schedules—policy allows a business-class upgrade to ensure we’re productive upon arrival. Be assured that we tightened the international travel policy 2 years ago when I was Chair of the Finance Committee. I am laser-focused on saving member dollars wherever we can without affecting our strategic initiatives.

    No matter what:

    • All travel reimbursements undergo internal review for adherence to policy.
    • • If members have concerns, the Board can revisit these guidelines to maintain fiscal responsibility.

    PAREA: A Long-Term Investment in the Appraisal Profession

    PAREA is not operating at a $1 million annual loss. Like any new business initiative, adjustments ensure its success. Key enhancements include:

    • A Readiness Exam to help participants move efficiently through assignments.
    • Time limits for modules to keep progress on track.
    • An AI avatar to handle common questions, freeing up mentors to support more participants.

    These improvements allow us to scale enrollment, increase revenue, and maintain program quality. We have also raised fees, and demand remains strong. As a result, we are actively reducing early losses and moving toward a surplus.

    Why PAREA Matters:

    • It supports the next generation of appraisers as the industry faces retirement.
    • It aligns with the Appraisal Institute’s mission to uphold credibility and competence.
    • Enrollment is growing: 20 graduates, 9 with LR certificates, 153 current participants, with 67 more ready to start, and over 2,000 more interested students.

    I am also pleased to report that $1.22 million for the Pathways for Success Scholarship provided by the Appraisal Foundation to support AQB-approved PAREA programs is available to help new appraisers enter the field. The application for the Appraisal Institute’s Licensed Residential PAREA program through this scholarship is now open. Interested applicants should start by filling out the Readiness Checklist. Your continued support for PAREA will help secure the future of our profession.

    Q1 Board Q&A
    Your concerns drive my efforts, and I appreciate your engagement. Please join the upcoming Q1 Board Report & Q&A on Tuesday, February 25, at 2 PM CT for further updates.

    Sincerely,

    Paula K. Konikoff JD, MAI, AI-GRS