12A — April 10 - 23, 2020 — Southern New Jersey Appraisal Institute — M id A tlantic Real Estate Journal
www.marej.com
Southern New Jersey Chapter www.ai-snj.org Telephone 856-415-0281 • Fax 856-415-1952
Appraisers Adapt to New Protocols As the Appraisal Institute continues to monitor guidance from the Centers for Disease Control and Prevention and the World Health Organization, the organization is taking seriously the health, safety and well-being of its professionals, customers and staff during the coronavirus pandemic. In this fluid environment, the Appraisal Institute encourages its professionals to remain aware of developments and resources offered by health professionals and public health organizations and to respond accordingly. Additionally, here is some guidance cultivated by AI Professional Practice staff: • Appraisers should take care not to put themselves in harm’s way while completing their assignments. Appraisers are advised to consult with their medical practitioners if they have concerns about exposure to the virus, and they should decline assignments if they feel their own health would be put at risk. • An important part of any appraisal assignment is analysis of market conditions. The coronavirus threat may be impacting market conditions. However, in most markets it is not yet clear to what extent, if any, market conditions are affected. Related, complicating factors include fluctuations in the stock market and changes in mortgage interest rates. • Market analysis includes observing market reactions. This analysis becomes more complicated when market participants themselves are facing uncertainty. • Appraisal reports should include a discussion of market conditions, and so mention the Coronavirus outbreak and its possible impact. However, it is not appropriate to include a disclaimer or extraordinary assumption that suggests the appraiser is not taking responsibility for analysis of market conditions. • The Appraisal Institute has published Guide Note 10, Appraising in the Aftermath of a Disaster, and Guide Note 12, Analyzing Market Trends. These two Guide Notes, which can be found on the Appraisal Institute’s web site, provide helpful guiding principles. The Appraisal Institute, the nation’s largest professional association of real estate appraisers, joined four other real estate organizations March 25 in asking state and local government leaders to include appraisers among “essential services” exempted from stay-at-home or shelter-in-place orders issued during the coronavirus (COVID-19) pandemic. The Appraisal Institute, the National Association of Realtors, the American Society of Appraisers, the American Society of Farm Managers and Rural Appraisers, and the Massachusetts Board of Real Estate Appraisers told the National Governors Association, the National Association of Counties, the U.S. Conference of Mayors and the National League of Cities that “We are concerned about ramifications and unintended consequences if appraisal services are not deemed to be essential services.” The five real estate organizations’ letter said: “We respectfully request that state and local governments minimize the potential interruptions to the real estate markets, and more specifically interruptions to the provision of appraisal services, by declaring real estate services as ‘essential services’ under any emergency powers declaration.” The groups also noted that “Appraisers are performing critical and timely services for real estate-related transactions, many of which will continue to take place during this crisis, and that will help to keep the economy functioning.” They added: “Everyone’s goal is the same – to protect the health and well- being of our citizens. But we must also protect and preserve the fabric of our communities and the critical infrastructure that supports and protects us all.” At press time, at least 17 states, 26 counties and 10 cities have issued stay-at-home or shelter-in-place orders, affecting 175 million people. Several states and localities have explicitly cited real estate appraisers under essential worker classifications, while others have not been as specific, creating potential inconsistency and confusion.
The Appraisal Institute is a global professional association of real estate appraisers, with over 17,000 professionals in almost 50 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and non- discrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Individuals of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA, SRA, AI-GRS and AI-RRS designations. Learn more at www.appraisalinstitute.org. The SouthernNJ Chapter of the Appraisal Institute has over 150members. We are the home to appraising professionals in the following counties: Burlington, Camden, Gloucester, Salem, Atlantic, Cumberland, Cape May, Monmouth, Mercer and Ocean. Our members perform a variety of services ranging from single family valuation to feasibility studies for regional malls and hotel-casinos. Whether it’s assistance on a home purchase or providing expert testimony for litigation, Appraisal Institute members are uniquely qualified to meet these needs. Visit www.ai-snj.org for more information on the Chapter.
Maria Nucci earned her SRA designation. She was presented her certificate at a recent chapter meeting by the Appraisal Institute’s National President Jeffrey Sherman, MAI, AI-GRS.
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