In marathons the 18th mile is known as "the wall".  Those of you that have challenged yourself to this ancient Greek tradition know what I'm talking about.  It's when your body breaks down...extensive cramping and omnipresent spike in pain.  This mile marker certainly is an obstacle both psychologically and physically.

That being said, "Obstacles are what you see when you take your eyes off the goal", according to Vince Lombardi.  So what obstacles come to mind in appraising?

The first obstacle that comes to mind for me is low fees on the mortgage side of business.  This can certainly be overcome with a culture of office efficiency with pervasive focus on technology solutions.  Yes, this is a weak plug for our in-house database product (DataComp) and commercial report writing software (Edge).

What other appraisal-related obstacles are out there?  The following are some examples based on our recent conversations with appraisers in different parts of the US...in no particular order.

• Commoditization trend of commercial real estate appraisals.
• Lack of communication with those knowledgeable about the transaction.
• Blind bids (further diminishing client communication and relationship building).
• Account receivables collection problems.
• Lack of information from borrowers.
• Uncooperative borrowers.
• Protracted reviews.
  

I would love your feedback on some of these obstacles, particularly the commoditization trend.  Not to name names, but it seems like the national banks are structured to conform to regulations, but not implicitly value appraisers' efforts.  Some in the business lament that national lenders have an essence of Wal-Mart's "Always Low Prices" tagline.  Applying price pressure on fee appraisers doesn't provide a lot of self-worth or much of a bottom line.

On the other hand, small community and regional banks seem to actually value appraisal expertise and good quality work product.  Like any other business, knowledge and trust is king.

So keep up the good fight.  Continue to provide high quality appraisal and consulting services.  Be adaptable to changing market conditions with consistent report product and be mindful of your fiduciary responsibility.  Spend time and money on in-house software solutions that actually work.  Communicate your extensive experience and knowledge in your work product.  Treat your clients as a valued customer.