President’s Column- ICAP
Our Businesses are Professional Firms – not “shops”
2nd Q 2017
by P. Barton DeLacy
2017 ICAP President
Last time we spoke of what it means to be a valuation “professional.” Today, let us look at our businesses. David S. Bunton, for the past 27 years, the President of the Appraisal Foundation, was one of our guest presenters at ICAP’s 2017 Lisle Seminar May 8. At lunch he lamented how many appraisers refer to their small businesses as “shops.” Shops imply the sale of commodity goods- one thinks of specialty stores or maybe a barber shop. Valuation services, he insisted, are the domain of professional service “firms.”
The word “firm” come to us from the Latin- to ratify by signature. Webster’s defines a “firm” as a commercial partnership. The term has become virtually synonymous with the businesses provided by our fellow professionals in law and finance. Begin with the end in mind, as Stephen Covey exhorted in his seminal “Seven Habits of Successful People.” No matter how small, our ICAP ranks are filled with small entrepreneurial businesses- professional firms of fair, impartial and objective valuers- not order-taking commodity “shops.” Go where you want to be- refer to your business as a firm!
In a related matter, I recently moderated a panel discussion at the RICS Summit for the Americas, here in Chicago for commercial appraisers. The topic: The Future of Valuation Firms 2020- Convergence, Integration or Fragmentation? The national and global valuation leaders for CBRE, Cushman & Wakefield, Altus, Colliers, Newmark Frank and JLL all participated. The discussion was lively, but the take-aways were these:
1. Big data and statistical analytics will eventually render the commodity appraisal obsolete (commercial too!). Automatic Valuation Models (AVMs) will replace bank appraisals the way Turbo Tax took over tax returns. Valuers will need to adapt like tax accountants did.
2. The big appraisal divisions (many funded by private equity and managed within much larger brokerage operations) will continue to poach one another’s staffs but cannot articulate a vision for growth.
3. The bright light for small firms is what the brokerage outfits cannot provide: local specialization (residential falls into this category) and valuation counsel.
Valuation counsel is advisory work built from our core competencies of fair, objective and unbiased analysis of real estate and land economics. Examples include any type of litigation support, property tax consulting, estate work or simply advising owners and occupiers on highest and best use. Long dominated by MAIs, valuation consulting is wide open to the professional residential valuer. More on building a consultative business next month.
P. Barton DeLacy, MAI, AI-GRS, CRE, FRICS
2017 ICAP President
Non-Member pricing includes a pro-rated ICAP membership for the remainder of 2017.
Date:June 5, 2017
Crown Plaza Springfield
3000 S Dirksen Pkwy.
Springfield, IL 62703
8:00 AM – Registration and Continental Breakfast.
Welcome & Introductions from 2017 ICAP President Barton DeLacy, ASA, MAI, AI-GRS, CRE, FRICS.
Featuring a special Springfield legislative update with Decremer Consulting, (ICAP’s Lobbyist), Shaw Decremer Consulting, LLC.
CE is pending in Michigan, Wisconsin & Indiana.
Register online for ICAP’s Springfield Seminar here
The Illinois Coalition of Appraisal Professionals (ICAP) announces its exhibitors for its Lisle Summer Seminar, May 8, 2017.
Register Online for one of ICAP’s Seminars Here
ICAP’s Lisle summer seminar will provide a vendor showcase which will bring appraisers and appraisal service providers together.
Exhibitors at ICAP’s Lisle Seminar include:
- Appraisal Institute
- Herbert H. Landy Insurance Agency
- Midwest Real Estate Data LLC
- National Association of Independent Fee Appraisers
- American Society of Appraisers
- CoStar Group
- LIA Administrators and Insurance Services
- Shumaker Technology Group
- Zimmerman Law Offices
There has been strong demand for ICAP’s seminars and attendance will be limited so it is critical that attendees register well in advance to reserve their spot.
ICAP’s Lisle seminar is approved for 7 Hours of CE in Illinois, Michigan, Missouri, Indiana, Wisconsin.
Register Online for one of ICAP’s Seminars Here.
Registration Is Open For ICAP’s 2017 Lobby Day
ICAP’s 2017 Lobby Day will be held May 16, 2016 in Springfield, Illinois (click here to register).
ICAP’s 2017 Lobby Day will include lunch, a capitol tour, meetings with representatives and a reception.
- Deadline to register is May 7th
- Registration is Free for ICAP Members
ICAP will provide you talking points and assign you to a small group of appraisers to meet with your legislator.
ICAP’s Lobby Day educates appraisers and legislators about important issues affecting the appraisal profession. This is a great opportunity to learn more about the legislative process and get a “hands-on” lobbying experience of talking with state legislators about issues that affect you.
ICAP’S 2017 Seminar Mailer
Be on the lookout for ICAP’S 2017 Seminar Mailer.
2017 Seminar Dates and Locations:
Lisle, IL – May 8, 2017
Lisle Sheraton Hotel
3000 Warrenville Road
Lisle, IL 60532
Springfield, IL – June 5, 2017
3000 S Dirksen Pkwy
Springfield, IL 62703
Collinsville, IL – June 12, 2017
1000 East Port Plaza Dr.