A Magical Review of NAR’s Annual Meetings

Earlier this month, the National Association of Realtors (NAR) held its Annual Convention in Anaheim, California. While your friends at Appraisal Insight spent a fair amount of time at Space Mountain and mingling with Mickey and friends we also took in some appraisal action. Credible valuation of real property is a hot topic these days so it should be no surprise that the topic came up in a variety of ways last week. Here’s a quick synopsis of what you missed if you were not there:

Real Property Valuation Committee: Earlier this year, NAR’s Leadership created a Valuation Work Group met via to discuss the creation of a structure that would allow NAR to develop policy on broader valuation issues including appraisals, broker price opinions, automated valuation models, comparative market analyses, and any other models that may be developed in the future. The Work Group presented a proposal to the Leadership Team to reconstitute the Appraisal Committee as a broader-based Real Property Valuation Committee.

The Appraisal Committee will change to the Real Property Valuation Committee starting in 2012. The new Committee will have representation from other NAR Committees including Professional Standards, Federal Housing Policy, Business Issues, and Conventional Finance and Lending. The reconstituted committee will also have representation from RPR and at least 16 seats on will be reserved for licensed or certified appraisers.

Regulatory Issues/RES Forum: The forum, held Saturday morning, focused on how the average real estate agent can best navigate the appraisal process. A panel discussed how to ensure credible valuations on real property and steps agents can take if they believe the value is not credible. The panel included NAR’s Appraisal Committee Chair, Frank Gregoire, Marty Wagar of Midwest Appraisal Management Group, Anna Ruotolo of RPM Mortgage, and was moderated by Mike McHugh of the Empire State Mortgage Bankers Association. You can read more about this topic at the Speaking of Real Estate blog.

Responsible Valuation Principles: The Valuation Work Group also unveiled an early draft of Responsible Valuation Principles for NAR. While we can’t share many details, the Principles will be the foundation for NAR’s policy on valuing real property – from appraisals to broker price opinions to automated valuation models. NAR’s Board of Directors moved the Principles to a work group that will be put together early next year. This Work Group will work out the details of the Principles and recommend them for adoption at a future date.

NAR’s 2011 Appraisal Committee

  1. What a good looking, and hard working group of REALTOR – Appraisers. Thanks to all for your hard work during 2011. A special thanks to Jerry Nagy and Heidi Henning for their guidance, and making sure the committee stayed on track throughout the year.

  2. Dan Wilson

    I want to thank all of you for trying to make it better.

    Dan Wilson
    RAA Kansas City, MO

  3. Why all of a sudden is everything and every text book obsolete when it comes to Realtors knowing the business of REAL ESTATE & Property Evaulation or Appraising. Why is the Appraisal Institute not the leader in this type pf information. Why can’t NAR use the many fine Universtiy departments to play a larger roll in getting theses formlas correct. After 35 years of selling Real Estate and Apraising for 22 years. We are always recreating the wheel and things get more missed up. Kind of like NAR’s reporting of sales stats. The industry needs to know there worth and charge for the service provided like a professional so the job can be completed without a rush and for $4 an hour. Training and insight will provide, not a crew of volunteers with limited knowledge that has been the problem to date. Need to bring back some Ethics and Morals to the business from the top to the bottom. To rename the problem and make some more phony rules is more of NAR taking large amounts of money to advertise the remarkable Realtor that continues to rewrite the rules to justify or mask the real problem.

  4. I am thrilled to know that you will be developing Responsible Valuation Principles for the future. In the next month, I will be working on putting together an opinion of value on a high end property for which I hope to obtain the listing. I really feel uncomfortable at times adjusting the value of comparable properties to the subject when putting together a formal CMA and wondered if, at this time, you have someone on your experienced Work Group (or anyone else who might read this message) with whom I could confer on my new assignment. Two heads are often better than one! Many thanks!

  5. The buck stops with the guy who signs the checks.
    If you do not drive your small business, you will end up driven out of business.