PROGRAMMING AT AAA 

The Roundtable
By Beth G. Weingast, AAA

The AAA is committed to creating programming for appraisers and organizes lectures, seminars, study days, field trips and conferences to improve, enlighten and enhance professionalism.

To this end it was Kathy Rosenblatt, Co-Chair of the Education and Program Committee who thought of, and developed, the Monthly Luncheon Roundtable.  Members are invited to the AAA office, where they sit around the conference table and discuss a topic in depth.  The discussion is led by someone with considerable experience in that field. The format begins with the leader introducing the topic, presenting opening remarks, giving background information, using anecdotal vignettes to illustrate the theme, and the Roundtable would be underway. While the committee suggested ideas for topics, ultimately we wanted the participants to propose areas relevant to their appraisal work.

The first Roundtable addressed "Estimating a Job and Discussing It with Your Client."  In the early planning stages we assumed the Roundtable would attract primarily new appraisers.  As a new direction in programming and an experiment, we had no idea if this would be of interest, and wondered if anyone would take time from work to attend a mid-weekday event.

The first Roundtable was slated for September 9. 2008.  The weather was miserable with pouring rain and gusty winds. At 11:45am we just assumed no one would show up but, as noon approached, in walked our colleagues, several holding lunch in soggy brown bags.  Although it was surprising that so many people showed up, it was even more surprising that of the 16 participants, more than half were experienced appraisers!  As we later learned, they needed a refresher course on what seems to be an ongoing issue of the profession: the complexities of estimating the cost of an appraisal. 

Once the introductions were made there was an initial reticence among the participants to contribute comments.  One could understand a certain inhibition regarding talking openly about what billing methods are used and the problems appraisers encounter when it comes to being paid. But, as the discussion progressed and more appraisers engaged with the topic, offering different approaches about what had yielded successful results for them, others began to feel comfortable asking for advice for specific situations. A vigorous give-and-take ensued about the various approaches for estimating and billing. The topic became focused and quite specific as the discussion pointed to how to charge for services.

Groups formed voicing different opinions: There were those who charged clients an hourly fee for work based on on-site billing. Others insisted an appraiser should charge. in addition to on-site time, the hours it took for research at the same hourly rate. A third group calculated a bill with on-site examination, research, and an hourly rate for administrative and appraisal preparation and production. This last approach, which held that appraisers should charge the same hourly fee for appraisal-related research as for the time it takes to prepare a word document, prompted strong differences of opinions. What was clear is there are multiple approaches to billing but we all agreed the client must know what to expect by having a clearly written contract explaining the type and purpose of appraisal to be prepared and the expenses to be charged.  Furthermore, an appraiser must point out to the client that, in the event of unanticipated work and unexpected expenses, additional costs need to be discussed. There was a consensus that the client should not receive an invoice with unanticipated fees and/or non-negotiated items. And, before any work begins, the contract should be signed and dated by the client and appraiser.

Afterwards, a short, pithy discussion ensued about how an appraiser should be paid. A number of methods were presented.  Several prefer a retainer so that monies are paid before the appraisal begins and the balance paid prior to receipt of the final report. Others opt for payment in full before the appraisal is released. Some noted that clients such as institutions and estate executors often do not pay prior to receipt of the report; here one must rely on trust and a well-written signed contract. Most participants concurred that more problems arise from problems about payment from individual clients than from the delay caused by a chain of bureaucratic approvals inherent to organizational hierarchies.

As a tangent is the fact that many art organizations--government agencies, businesses and cultural organizations--insist on knowing the appraisal fee before the work is begun. In such instances, once the estimate has been submitted there can be no additions or changes. Therefore the appraiser must rely on past experiences and know to charge a sufficient fee so as not to end up short.

At the time of the first Roundtable in September we were aware the economy was weakening and several appraisers wanted to discuss bolstering business during a shaky period. Several topics were introduced including how to try to salvage a job in instances where the client cancels. For those of us familiar with such situations, we suggested working with the client to break down the appraisal into several parts. It's important to first agree the appraisal project can be prioritized, and that by organizing the material into smaller sections (e.g., appraising the most valuable and vulnerable property first) and continue at a future time to complete the work. Having a large job whittled to a smaller one is disappointing but it is an economically realistic approach. 

The second Roundtable discussion was led by board member Mark Bunda, AAA, who presented interesting and applicable information about appraisal formats. By October we began to reach out to regional representatives to schedule Roundtable discussions and expand programming so that members might examine a variety of issues.

The first regional Roundtable was organized by Carter Ferrington, AAA, regional representative in Washington, DC.  The event was held in the evening and the topic was 'How to be an Effective Expert Witness.'
It is clear that the economic downturn also needed to be addressed. The topic of the December meeting was "What to do When the Phone Doesn't Ring?" Every chair in the room was occupied.  I began by talking about how to stimulate business during a lull. For me, one of the most effective ways to establish business contacts is to attend events sponsored by the insurance industry.  A tightly organized professional network, insurance professionals combine meetings, seminars and education days with social and network gatherings. Usually I attend the larger regional or state meetings where professionals in related fields are invited to rent space on the exhibition floor and spend the day meeting hundreds of insurance professionals who attend. Typically companies send staff from Personal Lines and Claims Departments, the very professionals who need and recommend appraisers. It is a unique opportunity to meet the very people who will hire you.

To draw attention and attract browsers to my exhibit I arrange colorful, eye-catching objects on my table.  I also display business cards and brochures as well as distribute delicious chocolates. People tend to linger whereby you have a chance to introduce yourself, tell who you are, what you do and explain how their companies will benefit by using your services. At the end of the day you have met old friends and colleagues from previous years, new people in the field, and have collected business cards for future contacts.  Soon your phone is ringing again; at the other end are clients who have received your name from their insurance agent.
 
Another way I have generated business is by volunteering appraisal services to a non-profit, civic or religious organization. Appraisal Days can lead to new contacts and work.  A project I have found productive is approaching the directors of Senior Independent Living facilities and Nursing Homes, facilities that have a continual turnover of residents--many of whom need appraisals and help with maximizing the sale of fine and decorative arts before moving to the smaller quarters. I have found that directors, who are in a position to refer people who are considering a move to independent and assisted living residences and may need to liquidate collections or personal property, are receptive to my services. Remember it is expensive to live in such a facility and those thinking of a move often have art work, fine furniture and decorative arts to be appraised for family distribution, living wills, estate planning and/or for sale.

Each Roundtable program has been stimulating and provides participants with a chance to learn how others work and how problems are solved.  The events also bring together appraisal professionals in a collegial setting where ideas are generated and mutual support builds professional esteem.  At the two Roundtables I attended I noticed that the discussion begins slowly and cautiously until one person takes the initiative, offering an idea that leads to another contribution.  Soon others will come forth giving alternative approaches resulting in an active and valuable exchange.   

Future topics being considered for late spring Roundtables are 'Attorney and Appraiser Working Partnerships' and 'Insurance Issues for the Appraisal Office.'  Please be in touch with your Regional Representatives to learn more about these events.  Join this new venture and let us know what you want to discuss.

 

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Please feel free to contact AAA with any questions or comments.
212.889.5404, x11.