Varied and timely items of interest from appraisal media - by John Mello

John Mello, Appraisal Institute

Now retired from the U.N., a friend with whom I served decades ago in West Africa in the Peace Corps has developed an interesting pastime. He collects jokes and witticisms from his global network of contacts. The multi-cultural jokes are compiled for a weekly email that is broadcast on Fridays to that worldwide network, hence “TGIF.” It is his way “paying it forward” or of consoling those contacts who have not yet retired or who have no hope to ever do so. It’s an interesting format. In the absence of a single pressing topic to address, that format of collecting varied and timely items of interest from different appraisal related global media caught my attention for this article. So, here goes … maybe there’s some good-natured humor or an item worth a pause for thought lurking somewhere in the midst.

• The Appraisal Institute has called on Congress for hearings in 2016 on the future of appraisal regulations.

• Surveyed real estate investors in the U.S. indicate declining commitments for the remainder of 2016.

• The average retail property cap rate is reported to have risen to 6.59% in the first quarter of 2016, perhaps indicating increasing investor perception of risk re. those reported declining commitments.

• Surprisingly contrary to general media reporting, real estate media report that residential real estate prices in Detroit are experiencing an unexpected, rapid increase.

• The Appraisal Institute reports that landscaping recently has been surveyed to incrementally influence residential property values.

• The Appraisal Institute has reported its support for HR 4620, the “Preserving Access to Commercial Real Estate Capital Act” which proposes to revise Dodd-Frank credit risk reserve regulations.

• A truism: Ben Franklin is reputed to have spoken the following wise words, ‘In wine there is wisdom, in beer there is freedom, in water there is bacteria.’ (…be careful out there!)

• Media reports that G.E. Capital, a major consumer and residential lender and investment player during strengthening and weakening economic conditions over the past two decades, has “extinguished” its bank charter.

• Media reports also indicate that banks are increasing commercial real estate lending while the investors above are reducing commitments, residential mortgage rates continue to be relatively stable, residential foreclosure rates have declined to pre-recession levels and prices paid for residential real estate in March were the highest since 2007.

• The Appraisal Standards Board issued its first Exposure Draft of changes that are being considered for the 2018-19 edition of the Uniform Standards of Professional Appraisal Practice.

• An updated (absolutely unscientific) sign of the times: the brains of older people are slower because they know so much. Researchers say this slowing process is not the same as cognitive decline, but reflects more information stored over time. So when a “senior moment” may occur, it’s just that the “disc is full!”

• Mindful of recent, current and forecasted changes in the appraiser population, the Appraisal Institute has petitioned the Appraiser Qualifications Board to review and revise current qualifying experience requirements.

• Nationally, the Appraisal Institute reports that it issued designations to 51 professionals in March and to 55 in April which is a healthful indicator of the strength of the organization and of support for the highest standards in the appraisal profession.

• Finally, but by no means least, the Massachusetts and Rhode Island Chapter of the Appraisal Institute recognizes with great appreciation the sponsorships that have been provided by Joseph J. Blake & Associates, Inc. and by CB Richard Ellis/New England, sponsors whose support of the chapter encourages the highest standards of appraisal professionalism.

John Mello, SRA, is the 2016 president of the MA/RI chapter of the Appraisal Institute.