"Drinkers with a running problem" is the tag line of a local running group I belong to.  We run every Tuesday and meet after at an Irish pub.  Good times.  One thing I've noticed though...what started out as a fun run has turned into a competitive environment between folks of different ages and gender.  So while we enjoy the Irish Smithwick beer after the run, our collective performances have improved significantly over the past few months.  We keep "one up-ing" each other for different race distances and challenges, but in a supportive environment.

It always seems like we're all in a hurry.  I was surprised to find that I missed an opportunity to bid on a recent commercial appraisal on Rims because I was too slow.  The appraisal bid came into my e-mail at about 10am and by lunch it was gone.  I'm not sure if the lender got their three quotes and terminated the bidding or perhaps it disappeared for some other reason.  In any event, I'm sure you have noticed the pace in which the bidding process has accelerated recently.

Appraisers are often doing a lot more work for less money and with less data.  Many times a typical multi-tenant building assignment lacks a current rent roll (forget actual leases) and income and expense statements.  Sometimes interior access is not available.  It seems that there are few accessible people knowledgeable about the property, especially if the loan officer (the person with much of the good information) is long gone or the property is in special assets.

In addition to your appraisal time frames shortening, some banks are actually grading you.  If you promise an appraisal in three weeks, they track you if you're late and by how many days.  They "ding" you for late assignments (without valid reasons) and unresponsive or protracted communication during their review process.  Banks often give you a letter grade on your performance: A+, A, A-, B+ and so on.  Just like school.

So what's an appraiser to do?  Continuing with the same appraisal systems is not recommended.  Just like my running group, we don't have to run faster.  Then again who likes to be left behind.  Not me.  So like it or not, it's time to pick up the pace. 

Don't be a "typical" commercial appraiser, a perfectionist which leads to inaction.  Invest time and money to implement new systems to automate your appraisal process.  Comp management, report writing and appraisal management should be your exercises.  Don't bite off more than you can chew.  Take baby steps.  It takes lots of time, but start today.  Wouldn't you like to find yourself a year from now stronger, faster, better?  I would.

If you  have an appraisal "best practice" you would like to share, please forward to Jeff.