Jeff Hicks, MAI President  Dohring Group RealWired!

I was incredulous at first when I saw the title BofA Reportedly Sending Property Reviews to India on a recent Appraisal Institute's Appraiser News Online.  After my laughter died down, I pondered what it really meant.  Typically rote, mechanical and easily replicatable activities can have fairly successful offshore or perhaps nearshore (offshore with proximity) strategies. I gleaned that this article was talking about residential appraising but can commercial be far behind this trend? 

The article indicates that, "Like many lenders, Bank of America needs to increase revenue and cut spending in order to compensate for sub-par loan growth and new government regulations."  I get it.  The pressure of the bottom line is ever-present.  However, check box compliance seems strange to me as a professional.  I wouldn't dream of filling out a check box with other professionals I use such as my CPA, attorney, doctor, etc.  Don't get me wrong, I sometimes have a difference of opinion with these professionals but I actually talk to them. Our industry has lost the ability to have a conversation, between ourselves to some extent, and definitely with our clients.

Recently we were having our Monday morning office meeting when the topic of e-mails and texting came up.  We older people in the office believe that diminishing communication skills (also writing skills) has a direct correlation to becoming less important, less valuable and less earning potential.  We concluded that without strong communication skills, your relevancy as a professional is substantially diminished.  You ultimately will become isolated.

On the flip side, insiders in the outsourcing business call it "your mess for less" meaning that outsourced back office work is often performed worse than in the US even when cost is considered.  Many outsourced relationships start off well but can end up in dysfunctional marriages. This disappointment has generated some lawsuits when relationships soured. Some American firms have "shadow capability" in the US recognizing that outsourcing is losing its luster and local talent is mandatory.  Original pioneers of outsourcing like GE and General Motors have already brought their IT work home.

Some commercial appraisers currently outsource repetitive tasks like job set up, research and creating exhibits for their reports.  However, this can carry the risk of hidden costs of mistakes due to misunderstandings via miscommunication.  Most folks outside of our culture may have perfect English but don't understand important nuances which come up almost daily.  Differences in time zones definitely don't help.

Is commercial appraising itself becoming rote, mechanical and an easily replicatable activity - outsourceable? Considering the amount of wealth associated with commercial real estate in the US, spending appropriately on its valuation is prudent for any investor.  So the short answer is "no."

In my experience I have found it more meaningful to have a working relationship with someone (notwithstanding Skype) you can actually pick up the phone and talk to.  Typically this means somebody in the US that understands your expectation of accuracy, demand for timeliness but also reasonable coordination of mutual effort.  It's time for us commercial appraisers to start talking - to our clients, to other appraisers and the general commercial real estate industry. It's time for us to network, spread ideas and promote our trade.