President’s Message

by John Gordon, MAI, AI-GRS

As the year winds down, I have been reflecting on what we have accomplished as a Chapter and the challenges still to be addressed.

This year, we

  • sponsored over a dozen education courses and home-grown seminars
  • spiced up our four Chapter dinners with visits by our national AI President, other featured   speakers, and surprise musical guests
  • exercised our brains during Food for Thought, topical discussions “ripped from the headlines”
  • saw growing attendance at Residential Roundtables, and inaugurated the new Commercial Assemblies
  • increased the involvement of members in our North Sound and South Sound Branches
  • expanded our outreach to university job fairs and real estate programs
  • reached out to neighboring Washington chapters, Columbia Basin and Inland Northwest
  • completed another successful Fall Conference in October
  • scheduled the November return of AI Express, an annual event to encourage participation on Chapter committees

We still face many challenges as both a Chapter and a profession.  These include

  • recruiting and training new associates as older appraisers transition to retirement
  • keeping our Chapter current with policies and structural changes at AI National
  • offering homegrown courses and seminars that complement the available online education
  • doing all this while maintaining the financial integrity of the Chapter and the Region

I very much appreciate the hard work of the many Chapter members and friends who contributed to a successful year.  Thanks to the officers and directors on the Chapter Board, to our branch officers and volunteers, to our commercial and residential liaisons, to our regional representatives, and to all those who served on a committee, attended a dinner, enrolled in a seminar, or supported the Fall Conference.  And a special thank you to the staff of our amazing Chapter office, Seattle Operating Support.

See you next year!

Corridor Valuation Seminar

November 9
Shoreline Conference Center, Shoreline, WA
7 hours CE by Stan Sidor, MAI

CLICK HERE TO REGISTER

For appraisers who desire to expand their practice beyond standard property types, this seminar will provide an overview and understanding of Corridor Valuation, including:

•    Recognizing what constitutes a corridor
•    Understanding the different types and uses of corridors
•    Understanding the different methodologies applicable in valuing a corridor under different use scenarios

Proficiency in Corridor Valuation will provide appraisers with opportunities to work with a broader client sector, including public agencies, railroads, trail associations, utility companies, and/or attorneys for condemnations, liquidations, and/or conversions of existing corridors or creation of new corridors.

Critical Thinking in Appraisal Seminar

November 16
CBRE Conf Room, Seattle
4 Hours CE by John Blazejack, MAI, SRA

CLICK HERE TO REGISTER

Why should you attend my seminar — “CRITICAL THINKING IN APPRAISAL”
This is my first opportunity to teach in Seattle my new home town.  I am an old time faculty member of the Appraisal Institute, teaching Market Analysis and Highest and Best Use.  My opinions on the Seattle market are fresh and controversial. Please come out and join me in discussing what will happen to Seattle real estate if interest rates move to six percent.

Past Presidents Dinner & Installation of Officers

November 16
Talaris Conference Center, Seattle

CLICK HERE TO REGISTER

Help the 2017 President Justin Slack, MAI, SRA, AI-GRS, AI-RRS and his incoming team kick off their year! Our November 16 chapter meeting will be a chance to socialize, install our 2017 leadership, honor past chapter presidents, and recognize with awards members that have made special contributions to the appraisal profession and the chapter.  In addition, we’ll be holding our annual AI Express.  This is like a speed dating opportunity when everyone has a chance to become acquainted with the committee chairs and the work of each chapter committee.

2017 Prepaid Meals Coming Soon

Enjoy the savings and convenience of prepaying for your 2017 Seattle Chapter Dinner Meetings. For $200 (a savings of $40!) you’ll enjoy four dinners at the Washington Athletic Club, parking included.  For those traveling from outside King, Pierce, or Snohomish Counties, a $20 travel reimbursement will be available for each meeting.

Keep an eye on your inbox. Full information and registration coming soon!

Advanced Market Analysis and Highest & Best Use

February 6-10, 2017
Silver Cloud Inn, Seattle-Lake Union
Instructor Nelson Bowes, MAI

CLICK HERE TO REGISTER

Combining the analytical processes of market analysis, highest and best use, and income valuation, this course is intended for those who have taken and passed the General Appraiser Market Analysis and Highest & Best Use course and have a thorough understanding of the mathematical and financial principles necessary to perform appraisals of income-producing properties.

 

The 10th Annual Fall Conference Was A Hit!

“Collegial”- that’s the word chapter President, John Gordon, used to describe the Fall Conference on October 18.  The conference afforded more than 250 appraisers an opportunity to form new relationships and, especially for longtime chapter members, a chance to catch up with old friends.  Everyone learned a lot through the course of the day from presenters and from one another about the state of and the emerging trends affecting the appraisal profession.

This year’s conference marked the 10th year for this event, and the Fall Conference Committee hit it out of the park.  Todd Henderson, MAI, the chair of the Conference Committee, as well as the committee members, listed below, deserve a big “thanks”.

The conference kicked off with a presentation by Bill Garber, Director of Government and External Relations for the Appraisal Institute. Bill discussed that government relations is the process of interacting with government entities to persuade government to take a desired action; participating in the democratic process; and/or educating the public about an issue or profession. The three primary components of interaction are direct lobbying, political action and education. Bill also reminded us that government policies impact our practices through licensing, standards, background checks and employment law. One of the bigger eye openers is that appraisers are facing competition from unregulated professions that are providing valuations. While these professions are subject to a certain level of regulation, they are not subject to mandatory licensing and standards.  Bill listed some of the unregulated professionals as business valuers, accountants, auditors, actuaries, engineers, real estate agents and brokers, data companies and due diligence items. Lastly Bill encouraged us to talk to our legislators about appraisal issues and reminded us that the Appraisal Institute has three full time people in Washington DC that are focused on appraisers and appraisal related issues.

Lunch was some really great Dijon Chicken (not rubber chicken- thanks to the Convention Center chef), accompanied by a presentation by Marshall Foster, Director of City of Seattle, Office of the Waterfront. Marshall shared the vision for the reconstructed waterfront once the viaduct is removed. In addition to a new Alaskan Way that will be placed in the area where the old viaduct sits, a pedestrian promenade will be built that will sit above the water and create a pathway for habitat for wildlife underneath. There will also be a green planting running parallel to the pedestrian promenade as well as a dedicated bicycle lane. This new creation will be tied into the new seawall which has been rebuilt with a salmon migration corridor where young salmon have already been spotted. In addition to these improvements, a central public space with 9 acres of contiguous pedestrian open space will be tied into the new Pike Place Market expansion and will be lidded over the new Alaskan way, with connections down to the pedestrian promenade. Other east/west connections will be made to downtown streets to create better connectivity with the waterfront and the downtown area. Marshall shared that the budget for these improvements is $709 million and construction scheduled to begin in 2019 or 2020, depending on the viaduct demolition.

Everyone involved in this year’s conference deserves a round of applause, but none more than our sponsors and Friends of the Conference (listed below).

Flag your calendar now for next year’s Fall Conference, which will take place on Friday, October 6, 2017 at the Washington State Convention & Trade Center.

Fall Conference Committee

Todd Henderson, MAI, AI-GRS – Chair
          Rob Bodkin, SRA Mitchell Olsen, MAI
          Aaron DeCollibus John Parsons
          David Hunnicutt, MAI Allen Safer, MAI
          Patrick Lamb, MAI Stan Sidor, MAI
          Matt LaMotte, MAI Tom Weaver, SRA
          Chris Mealy, MAI

 

Thank you to our 2016 Fall Conference Sponsors and Friends of the Conference!

Friends of the Conference

 

Matt Bacon, MAI
David Beck, MAI, AI-GRS
Murray Brackett, MAI
David Grosten
John Gordon, MAI, AI-GRS
Todd Henderson, MAI, AI-GRS
Patrick Lamb, MAI
Melvin Morgan, MAI
Brian O’Connor, MAI
Martin O’Donnell, MAI, ASA, AI-GRS

 

Mark S. Roberts
Renee Schaefer, MAI, AI-GRS
Stan Sidor, MAI
Linda Sue Stewart
Mark Thurston, MAI
Brian Vincent, MAI
Kathryn Walsh, SRA, AI-RRS
Jim Walker & Elly Snow
Tom Weaver, SRA & Mark Kopcho, SRA
Jerey Wilson, MAI

Comments on AQB Exposure Draft

Earlier this year, the Appraiser Qualifications Board of The Appraisal Foundation proposed changes in the requirements for state licensure and certification.  During the comment period, Chapter President John Gordon submitted the following letter: 

I am the current President of the Seattle Chapter of the Appraisal Institute.  The residential members of our chapter gather periodically in “Residential Roundtables”, providing an opportunity to discuss issues of concern in an informal setting.  At the June Roundtable, we discussed the proposed changes in AQB requirements, specifically (a) the elimination of a minimum duration of service prior to licensure or certification and (b) provision of alternatives to a four-year degree for residential certification.

After some discussion, the nine appraisers present were unanimous in their support of both proposals.  The current requirement of a four-year degree is seen as a significant barrier for licensed residential appraisers seeking to advance to certified status.  With regard to the duration of service, the appraisers felt that, once the minimum hour requirement was satisfied, there is no reason to postpone certification.

Thank you for considering these changes and for inviting our input.

John D. Gordon, MAI, AI-GRS
2016 President, Seattle Chapter AI

Wenatchee Hosts ACOW Conference

by John Gordon, MAI, AI-GRS

The 2016 Summer Conference of the Appraisers’ Coalition of Washington took place in August at the Red Lion Hotel in Wenatchee.  Now in its 18th year, this annual gathering brings together appraisers from throughout the state for educational seminars and legislative updates.  The event was coordinated by a team of A.C.O.W. directors, including the current President, Penny Crowe, SRA, and the emcee of the conference, Bruce Jolicoeur, MAI.

On Wednesday evening, early arrivers enjoyed pizza, beer, and wine at Pybus Market.  Located on the shore of the Columbia River, the Market is an amalgamation of shops and restaurants in what was once an industrial building.  It opened in 2013 and soon became a major destination for both residents visitors.

The Thursday morning program included presentations on water rights and the Washington wine industry.  The afternoon session was devoted to the development and application of sale adjustments, with implications for the sales and cost approaches.  Presentations on Friday covered appraiser liability and the impact of green building on energy usage, water consumption, and value.

We also heard from T.K. Bentley, our industry representative in Olympia, who brought us up to date on recent and pending legislation affecting the appraisal profession.  Current issues include improving interstate reciprocity for appraiser licenses, clarifying the role of the appraiser when valuing vacated roadways, and ensuring the confidentiality of appraisals during negotiations involving a purchase or sale by a public entity.

The Seattle Chapter of the Appraisal Institute is a strong supporter of the Coalition.  Designated members of the Chapter contribute $60 to A.C.O.W. as part of our annual payments to AI national, and many candidates and affiliates make individual contributions.  Information on their activities and resources can be found on the A.C.O.W. website:  www.acow-wa.org

 

Welcome Owen Schmidt

Darcy Schmidt’s baby was born on August 15 at 3:00 AM, and was 21 inches long and 8 lb. 11 oz.  His name is Owen Maxwell Schmidt.  Here’s a photo of the beautiful boy.

 

Food for Thought: Airbnb/VRBO

by John Gordon, MAI, AI-GRS

“Food for Thought” is a feature of the Chapter Dinner meetings that gives an opportunity to learn about a complex issue involving valuation and public policy. Here is the handout from our dinner in September: 

Food for Thought: Airbnb/VRBO

Airbnb and VRBO (Vacation Rentals by Owner) are online reservation networks through which property owners can rent out rooms, apartments, or entire homes on a daily or weekly basis.  The owner defines the leased area, sets the rental rate, and determines the frequency and extent of housekeeping or other services.  The guest is responsible for paying the rent and associated lodging taxes, and for leaving the property in good order upon checkout.  Each network retains a share of the rent as a service charge.  As of early 2016, there were an estimated 3,800 Airbnb units and 1,400 VRBO units in the Seattle area.

Supporters of these networks emphasize the potential for individual owners to generate supplemental income.  In addition, when high occupancy rates limit the availability of traditional hotel rooms, these networks increase the capacity of local markets to accommodate business travel and tourism.

Opponents note that the introduction of new competitive supply may have a negative impact on the performance of traditional hotels.  Housing advocates argue that there is a pervasive shortage of affordable residential units, and that the conversion of monthly rentals to transient lodging further reduces the available housing stock.  Finally, communities and individuals have expressed concern over the introduction of short-term visitors into neighborhoods that are zoned for residential use.

Some cities are taking steps to limit the scope of online networks.  Options include limiting the number or share of transient units within a structure, placing a cap on the number of days per year that a transient unit may be occupied, and/or requiring that the owner reside at the property.  The City of Seattle is considering the adoption of similar restrictions.

Questions:

  1. Should short-term lodging be permitted in residential neighborhoods?
  2. Should there be limits on the number or share of transient units in a single structure?
  3. Should there be limits on the number of units operated by a single owner?
  4. Should there be limits on the duration, frequency, or seasonality of rentals?
  5. Should participation be limited to guest rooms in owner-occupied residences?
  6. You are appraising a ten-unit apartment building in a neighborhood with multifamily zoning.  Six of the units are traditional apartments and four units are operated as transient lodging through Airbnb.  Even after vacancy and expenses, the transient units generate higher annual income than the monthly rentals.  Should the surplus income be considered in your analysis?  If so, would you classify its contribution as real estate value or intangible value?
  7. You are appraising a single-family home that is the subject of a pending sale.  The owner rents out the home during the summer through VRBO.  Based on your analysis of comparable sales, it appears that the negotiated price is above market.  How do you arrive at your conclusion of current market value?

Recent Designations

Please join us in congratulating these recently designated members!

Mitch Olsen, MAI
Jeremy Stuefert, MAI
Daniel Tibeau, MAI
Kathy Walsh, SRA, AI-RRS

Mitch Olsen, MAI

Mr. Olsen is currently a Vice President working in the Pacific Northwest Region of the Valuation and Advisory Services group. Mr. Olsen primarily focuses on the valuation of industrial real estate in the Pacific Northwest. Property types primarily include core industrial properties, single and multi-tenant facilities, and buildings located in secondary and tertiary markets. He also is experienced in valuing complex leasehold assignments, proposed construction and ground market rental determinations.

Mr. Olsen has experience in appraising multi-family residential properties (proposed, mixed-use, conventional, LIHTC, and all construction types), retail, office, flex space buildings, self-storage, condominiums, residential subdivisions (existing and proposed), and government taking assignments. He has performed valuations of partially completed, retrospective, renovated and existing structures, and partially stabilized properties.

Jeremy Stuefert, MAI

Jeremy started appraising with Kidder Mathews in 2001. He has primarily worked with Gary Klockenteger with an emphasis on the multifamily market, particularly affordable housing programs.  Jeremy’s experience includes appraisals, market analyses, feasibility studies and consulting assignments throughout the northwest and is licensed in WA, ID, and OR. His background includes an undergraduate degree in civil engineering from WSU where he met his wife Anne, a practicing structural engineer.  When not appraising, he is trying to keep up with his twin three-year old boys.

 

 

Daniel Tibeau, MAI

Mr. Tibeau is a Senior Appraiser working the NW Division of CBRE’s Valuation and Advisory Retail Group. He has been an active commercial appraiser since 2007 valuing properties throughout Washington, Oregon, and Alaska.
Mr. Tibeau has significant experience in appraising all of the major property types from retail, multi-family, office, industrial, residential subdivisions, land, and government taking assignments.

At CBRE’s Seattle Office, Mr. Tibeau is part of the Retail Group. This group specializes in all variations of retail real estate including regional & neighborhood shopping centers, pad buildings, NNN-leased assets, shopping malls, and life-style centers. Extensive market data and up-to-date investment knowledge make the NW Retail Group an industry leader in retail valuation.

Kathy Walsh, SRA, AI-RRS

Kathy Walsh has a small residential appraisal firm on the eastside. She has a mostly paperless office and uses technology tools like tablets and I-phones for her inspections. She  enjoys talking to people about using tech tools and doing technology consulting. Her and her husband Jerry taught a technology class at the last Fall conference.

She has been actively involved in the Seattle Chapter. She produced the All Day/All Residential seminar this summer at two location that was very successful. She is a Regional Representative and attended the regional meeting in Portland, OR and the national meeting in Charlotte, NC. While in Charlotte she stayed for the AI connect 3-day conference and had a great time meeting people and taking classes. She looks forward to getting more involved with the chapter, especially in the education arena.

She received her SRA designation in 2015 and has now received the AI-RRS designation.

Fall Conference Gold Sponsor

Region Meetings

On July 24th, quarterly AI Region meetings were held in Charlotte, NC; these preceded the AI National Conference that continued through the week. All 10 regions joined in the morning session for a “Joint Region Meeting” with several hundred members from around the country there to represent their chapters; Seattle was well represented with Chapter President John Gordon, Chapter Regional Reps Todd Henderson, Justin Slack (Chapter V-P), and Kathy Walsh; Mary Campos also waved the Seattle flag as the Region I Third Director.  The morning session included the State of the Appraisal Institute updates from the National Officers as well as updates from several National Committee representatives including: International Relations; Government Relations; Strategic Planning; and the Professional Standards & Guidance.

Additionally, the 45-Day Notice was read aloud and there was also a presentation from the Chair of REAGIT, the Real Estate Appraisers Group Insurance Trust, about this often overlooked member benefit designed specifically for members of the Appraisal Institute.

National organization meeting dates for the remainder of 2016 as well as for 2017 were presented. Two events that may be of interest to chapter members are: LDAC (May 3-5, Washington, DC) and the joint Appraisal Institute/ Appraisal Institute Canada (AIC) International Conference being held in Ottawa, Ontario, CAN in the summer (June 8-11).

After lunch, each of the regions broke out into specific Region Meetings; Region I had a full agenda with presentations on the 45-Day Notice; the Region Finance Report (Kathryn Sturgis-Bright, Nor-Cal); the Region GRC report (Darwin Ernst, Montana), the Regional Education Committee report (Brian Brooks, Greater Oregon), and a written report from the Regional Nominating Committee with their recommendations for the 2017 National Nominating Committee Representative for Region I. The Discussion Leaders (Brian Brooks, Greater Oregon; Denis DeSaix, Nor-Cal, & John Gordon, Seattle) from the Roundtable sessions at the April 30 Region I meeting in Portland were all in attendance and provided recaps of topics.

Other items determined included Seattle being selected as the site of the Spring 2017 in-person, Region I meeting. Stay tuned for details to be released at a later date, but this is a great opportunity for the Seattle Chapter members to be able to attend a regional event with Region I chapter leaders, regional leadership, and a national officer.

National Conference

Following the Region Meetings, the Annual AI Conference was held in Charlotte; the 3-day event saw more than 500 real estate professionals from around the globe converge for education and networking opportunities. Several Seattle Chapter members attended including Mary Campos, Mike Millikan, Chuck & Wendy Munson, Dan Oxford, Justin Slack, and Kathy Walsh.

Education offerings ranged from litigation support, valuing intangibles, the new FHA Handbook, bank regulatory topics, multi-family valuation issues, integrating environmental remediation into the valuation process, valuing high performance properties (both commercial and residential), and case studies for completing fundamental market analysis studies. Mike Millikan, Chief Appraiser and Environmental Risk Officer at HomeStreet Bank, presented “How Environmental Issues Affect the Appraisal Process: Practical Case Studies”; this was a follow-up to a session that he co-presented in Dallas at the 2015 AI Connect Conference.

Each evening included a networking social, and the final day included a tour of the NASCAR Museum and Hall of Fame. Typically, late July in the southeast is not likely where Seattleites would envision enjoying themselves, but this venue and event dispelled many of those myths and provided a great opportunity for members to re-connect with colleagues from LDAC and other past meetings, pick up some CE hours, and hear some exciting speakers on many great topics.

Next year’s AI Annual Conference is going international, being jointly hosted by AI Canada and the Appraisal Institute in Ottawa, Ontario (Canada) in early June 2017, and should continue proving to being a showcase event meaningful to global valuation and real estate professionals.

Chapter Leadership Program 2016

Each year incoming Chapter Presidents attend the Chapter Leadership Program in Chicago to hear the latest from the Appraisal Institute and receive valuable information on the ins and outs of leading a chapter.  This year Justin Slack, MAI, SRA, AI-GRS, AI-RRS attended along with Chapter Executive Director, Elly Snow.

2017 Seattle Chapter President Justin Slack, MAI, SRA, AI-GRS, AI-RRS with Appraisal Institute President Elect, Jim Amorin, MAI, SRA, AI-GRS

 

Adding Chapter Service to Your AI CE LogEntering chapter service via the online AI CE Log is easy! The online system will process the hours of chapter service in real time, immediately adding them to a Designated Member’s or Practicing Affiliate’s AI CE Status Report. Please review THIS GUIDE on how to add chapter service.AI Education Trust ScholarshipsThe Appraisal Institute Education Trust offers options to Candidates for Designation to assist them in completing their education deadlines. Upcoming scholarship deadlines: Jan. 1

  • Appraisal Institute Education Trust AI Course Scholarship
  • Appraisal Institute Education Trust Minorities and Women AI Course Scholarship

Candidates are eligible to receive one scholarship per calendar year.Please note: It is recommended that, prior to submitting a scholarship application, applicants attend a minimum of two Appraisal Institute chapter meetings annually.Learn more about AIET Scholarship options – click here or email educationtrust@appraisalinstitute.org

2017 Capstone Offerings Now Available

The 2017 Capstone offerings are now available.  Click here to view full information and to register.