Why earn an Appraisal Institute designation? by Friel

Karen Friel, Friel Valuation Advisors, LLC

Last month at the Massachusetts and Rhode Island chapter meeting, I had the privilege to confer my first designation as the 2017 chapter president. This is the highlight for any chapter president and it was especially meaningful to me as I awarded the MAI designation to Marcus Johnson, MAI. Marcus and I were paired in the Appraisal Institute Candidate and Advisor program so I know how much effort he put into reaching his goal.

There are approximately 76,000 licensed and certified appraisers in the United States. Less than 12,000 though carry an Appraisal Institute MAI or SRA designation, the premier designations of the appraisal profession. These designations are known globally as the foremost in appraisal professionalism owing to the rigorous education and training that is the hallmark of the Candidate process, a process that goes well beyond the minimum requirements for state certification. Clients across the spectrum of lending, investments, accounting, courts, municipalities, the federal land agencies and others look to the MAI and SRA designation as a symbol of professionalism. Often clients have little knowledge of appraisal and they use the Appraisal Institute designations as a marker for quality and reliability. As a review appraiser, I will admit that even among MAI’s and SRA’s, appraisal quality sometimes varies and also that there are some excellent undesignated appraisers. However, I can say without reservation that over the last 25 years of reviewing appraisals in New England and across the United States, appraisals from Appraisal Institute designated appraisers are usually among the most well developed and documented appraisals that I review.

State certification is the minimum level of competency for federally related transactions but for more complicated properties, most lenders recognize that a higher level of competence is in order. Holding the MAI and/or SRA designations allow appraisers to access a larger share of the appraisal pie (and a larger piece of pie is always better.) Almost as important, however, is simply the ability to answer affirmatively, “Yes, I’m an MAI” or “Yes, I’m an SRA.” There’s no need to rationalize to prospective clients (and to yourself) why you don’t carry an appraisal designation. For those already on the candidate for designation track, finishing the designation is universally a fulfilling experience. I have yet to meet any designated MAI or SRA appraiser who regrets earning his/her designation.

So why wait? The Appraisal Institute and the Massachusetts and Rhode Island chapter want you to achieve your designation goals. Seasoned MAI’s and SRA’s volunteer as Advisors for each designation candidate to guide them through the process to meet timeline requirements. While completing the Demonstration Appraisal on an independent basis had always presented a challenge, the recent Capstone course concentrates this requirement into a classroom based experience with independent pre-work and webinars. There is also a synchronous 100% on-line Capstone class. The result is that the number of designations awarded have increased as candidates now pass the old “Demo” hurdle in a few weeks (albeit they are challenging weeks). The Massachusetts and Rhode Island Chapter even offers scholarships to candidates for Capstone tuition.

Please feel free to contact the chapter for further information. John Davis, MAI is the 2017 Candidate Guidance chair and will be happy to answer questions. Moreover, MAI’s and SRA’s are generally a friendly group. Have a cup of coffee with one and they will likely tell you that they are looking forward to retirement. There will be opportunity going forward for newly designated appraisers as this current generation approaches retirement. Some are already transitioning to part time practice. Now is the time to plot and reach your designation goal.

Karen Friel, MAI, MRA, is the 2017 president of the Massachusetts and Rhode Island Chapter of the Appraisal Institute and principal at Friel Valuation Advisors, Carlisle, Mass.