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Editor’s Note: Appraisers are coming together in states all across the country to fight issues that are pulling the profession apart. This story is taken from the new Working RE print edition, currently in the mail to 80,000 appraisers. The OREP.org/Working RE Customary and Reasonable Fee Survey just topped 15,000, a strong response and valid sampling by any measure.  View Results

Appraiser Power: State Coalitions Now Forming

By Mike Antoniak


Trying to catch the ear of your state legislators? Consider joining a coalition of like-minded appraisers if your state has one; if none exists, start talking up the idea and get things rolling to launch a statewide coalition.
 

“There’s strength in numbers,” observes residential appraiser Michael Brunson, president of the Coalition of Appraisers in Nevada (CAN) (NVappraisers.org) and partner in Brunson-Jiu, LLC, Las Vegas. “Professionals in the real estate, mortgage and banking industries all understand the value that comes from being organized and in a group and we should too,” he says. “It’s the only way to get a seat at the table during the legislative process.”

        
Randy Neff, SRA, Neff Evaluation Group, Peoria, IL, and past-president of the Illinois Coalition of Appraisal Professionals (ICAP) (ICAPweb.com) agrees. “When you talk to your state legislators, they want to know who you represent,” he explains. “When you can say we, as a group, represent appraisers throughout the state, that really gets their attention and they will listen to what you have to say.”

In his work with ICAP, Neff advocated the launch of the National Coalition of Appraisers (NAC). The intent was to create a national network of state real estate appraisal coalitions and develop a website to serve as a resource for states interested in starting one. “We looked for a way to encourage those in other states to get organized, and offer some services that could assist them,” he says. The NAC website (NationalAppraisalCoalition.org) includes a directory of coalitions currently running throughout the country, an invitation to contact the group for advice and links to templates for creating a state coalition website.


(story continues below)

 

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Jean McCarty, McCarty Appraisals, LLC, Ridgeland, MS, and president of the nascent Mississippi Coalition of Appraisers (MSCapp.org) contacted the group last year while researching start-up plans for a collation in her state. She called a meeting in September which drew 20, including several who volunteered their talents to create the coalition. “We came up with our to-do list: formalize the group, write bylaws, get our tax ID and register with the state,” McCarty recalls. When the group officially registered in December 2010, it had 17 dues-paying members. At last count, there were more than 100. Early this year, the group hired a lobbyist, a decision which has helped establish its credibility, and the coalition held its first CE class for appraisers in April. McCarty is currently exploring the feasibility of a state conference and developing a broader program of CE classes. “We’ve come a long way in a very short time,” she says, eager to spread the word throughout the state. “Once appraisers hear our story and see all we are doing on their behalf, paying the $50 in dues to become a member doesn’t seem to be much of a problem.”

State Specific Requirements

Although goals and processes can vary by state, a few general principles always apply. “Someone has to take the initiative and leadership to say what the issues are in your state and what you can do about them,” advises Rick Lifferth, Market Data Service, Layton, UT. He helped create the Utah Association of Appraisers (UtahAppraisers-uaa.com) in the early 1990s. It functions as a coalition of Utah’s appraiser associations, promotes the profession and lobbies on behalf of their shared legislative concerns. “People come alive when you bring them together and start talking about the things which concern their careers,” said Lifferth. Conversation starters include topics like reasonable fees, education requirements, AMCs and BPOs. “It’s amazing how much you can accomplish just by sitting down together and talking about the issues,” he says. “Even with AMCs, when you start talking about common interests, there’s a lot you can accomplish.”
 

In North Carolina Archibald “Baldy” Williams, owner of Triangle Appraisal and Real Estate School, Wilson, NC, and president of the North Carolina Professional Appraisers Coalition (NCPAC.org), says successfully organizing a group begins with a simple admission. “It’s the realization that if we don’t do something to protect and promote our interests no one else will,” notes Williams. “Nearly all the legislation that affects us is at the state level, so you’ve got to have a state-wide organization.” He estimates NCAP members now number between 600 and 800 with committee members representing all 100 North Carolina counties. “When you represent people across the state, and each of them talks to their local legislator, you can get something done politically,” he notes.


(story continues below) 

 

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(story continues)
 

Processes that Work

But what does it take to get to that point? Again and again, a similar process plays out. Initially the coalition is nurtured by a few at start-up. Nevada’s group began after two appraisers were invited to serve on a task force evaluating the need for BPO legislation, and realized the impact a group could have on the legislative process. Williams says NCAP started when five or six appraisers began getting together and talking about shared concerns. “Once you know there’s interest in a group, you have to determine what your goal is, what you can accomplish and how you can go about it,” William says. “Someone has to be willing to make the sacrifice and put in the time and effort to get things going.” Neff agrees: “The biggest initial challenge can be finding that leadership, someone willing to take the ball, organize and come up with a plan to keep it going.”
 

Early decisions can have long-term impact: issues like non-profit status, whether the group’s primary purpose is to promote the profession or serve as a political action committee, all impact how the group registers and operates. Sources of funding need to be decided. Until the group is formalized someone may need to put up seed money to cover start-up costs on the promise of repayment later.
 

Outreach to appraisers, explaining the coalition’s purpose and goals is critical at every stage of development. “The challenge in the beginning is the same as it is today, convincing people that if they are going to be a professional appraiser, they should be a member of this group,” says Williams. “You’ve got to energize appraisers to get involved and show them all you’ll be able to do as part of this group,” adds Lifferth. With today’s communications options, that outreach can be easier and have more immediate impact.
 

Don Clark, Clark Realty Services, Virginia Beach, VA has been working with Perry "Pat" Turner, SRPA, SRA, P.E., and others to establish the Virginia Professional Appraiser Coalition now being organized there. The effort was launched with a post on the Virginia section of AppraisersForum.com. “Someone suggested it would be a good idea to have an appraisers’ coalition in Virginia,” Clark says. “A few of us talked back and forth about the idea online and it just snowballed from there. Appraisers from across the state started expressing interest. An initial exploratory meeting was timed to coincide with the quarterly meeting of the Virginia Appraisal Board in Richmond this past February. It was open to all interested appraisers and promoted by email and personal networking.  More than 100 showed up. The only real challenge we’ve faced so far is that everyone is in a great hurry to get this done but it takes time, effort and some money.”


They also invited representatives of NCAP, including Williams, to address the gathering to explain the benefits of a coalition. Attendees named a steering committee to draft a mission statement and bylaws. These were circulated to potential members in April as the next step toward formalizing the group. Once feedback is received, dues will be set, necessary paperwork will be filed, elections held, and the membership drive for a formal coalition will intensify.

Dues alone will not carry a group’s efforts. Lifferth, for instance, notes the lobbyist employed by his group runs about $15,000 a year. With or without a lobbyist, there are other costs even in start-up phase. Creating a legal entity entails paperwork and legal fees. “You’ve got to have a website,” advises Brunson, underscoring the importance of another long term operating expense. “It’s the best way to disseminate information about who your group is, what it does and explain why someone might want to become a member.”

In most cases, coalitions look to continuing education programs and conferences as long term income streams. “One of the ways ICAP is funded and growing is through seminars,” notes Neff. “Along with dues, they are important to keep the group going financially.”

 

“It has to be a combination of dues, and something else,” agrees Brunson. “We offer classes that are open to all appraisers, we’re not an educational provider but we look for places where we can fill gaps in continuing education to help members and give them more value from the organization.”
 

Building an effective coalition to benefit the profession poses many challenges, short and long term. Fortunately, that work has been done and proven, giving start-ups many models on which they can build. “I’d advise anyone considering putting together a coalition to get started by contacting a successful organization in one of the states that already has one, and take a look at their bylaws,” says Williams.

 

Sidebar

A Formula for Success

Start the Dialogue: The most effect way to launch a coalition is simply by talking the idea up with other appraisers. Sooner or later you’ll find like-minded individuals who will help get it started.
 

Use the Web: Take advantage of email and social networking to promote the concept on a broader level. Even a simple website outlining plans, encouraging inquiries, will help accelerate the process.
 

Get Together: Once you’ve got a core of appraisers committed to bringing the group to life, schedule a meeting when and where it makes sense for most to easily be there.


Make Plans:
Define purpose, goals and what needs to be done to bring the coalition to life.
 

Learn from Success: Coalitions in other states are up and running. Talk to several. Consult their bylaws as references when formulating yours.


Spread the Word:
Use all resources on and offline, and personal networking to let other appraisers know what you’re doing and why they should be a part of it. Strive to have all corners of the state represented.
 

Get Formal: Register the necessary paperwork, elect a chair and board, create committees, and draw up bylaws. Determine operating expenses and identify short and long term revenue streams.
 

Be Flexible, Patient and Open to all: It all takes time to build a coalition that can best represent and speak for appraisers across your state.


About the Author
Mike Antoniak is a freelance journalist and author, with special emphasis on real estate, technology and business, based in Dowelltown, TN.

 

 

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