Many appraisers want to know what the future holds for our commercial appraisal industry. Where's it going, what will happen next, what to expect. Predicting the future is like a discounted cash flow. You hope the myriad of your input results in a credible value conclusion, especially since your crystal ball might be looking out until the Year 2024. However, not looking to the future is like running with your head down. You will ultimately hit a fence post, wall or perhaps come across an irritated pit bull.

 

I'm no Miss Cleo, but Jacob Morgan may have some of the answers in his book, The Future of Work. The book points to five trends: millennials, globalization, mobility, technology and new behaviors in the workplace. Even if you exclude the millennials, the remaining employees would still care about meaningful work and want flexibility. When I hear the word millennials my brain unfairly conjures up 20-somethings with a work ethic emotionally tied to their mood. However, these "youngins" really want to be a part of something positive, a company that gives back to society in a meaningful way. Old-school bosses want the younger employees to adapt to the way they do it, not the other way around. For this very reason, many appraisal firms have put off hiring younger trainees or appraisers.

 

The argument is, why one would make an investment of time and expertise only to have the younger employee move on to their seemingly scheduled 24-month career change. Smarter appraisal firms no longer assume that "A" Players need to work, but rather try to create an environment where people want to work there. If not, you might as well install a rotating front door. Lately, it seems talented people need businesses less than businesses need talented people.

 

Telecommuting means you don't come into the office, but you still have to work. Flexible work schedules means that you have a choice where and when you work. Firm owners need to be much more receptive to hearing new ideas or risk disengaged and ultimately unproductive appraisers. Space limits my discussion of globalization, but there is a reason instructors are traveling all over the world to teach real estate appraisal valuation.

 

Commercial appraisers can be segmented into three buckets: "Early Adopters", "Exploratory Mode" and "Inertia." Early Adopters love technology and office efficiencies, easily see the ROI, and don't have a problem opening up their wallets. They realize the long-term goal is to retain talented appraisers, attract younger ones and improve profit margins. The largest group, the Exploratory Mode folks, are smart appraisers that want efficiency, but are not sure of what to do next. Some in this group have halfheartedly tried a few things, but ultimately felt discouraged with their efforts. On the other hand, Inertia appraisers spend butkis ($0) on technology and have no interest in change and plan to just close the doors when they retire.

 

The new behavior with the most progressive appraisal firms is one of collaboration. I understand that appraisers can be like herding cats. However, if you own the firm you certainly want your appraisers and support staff to be maximally productive. If the owner of the firm will not spend the money, you as an employee, pull out your Visa card and purchase solutions yourself. Not having a comp database, report writing and management workflow application is like giving your yard guy a Weed Eater to mow five acres of tall grass. He can get it done but it's exhausting and uber inefficient.

 

The Holy Grail to be able to see the future is education. Not necessarily formal education, but rather learning from others, often in informal situations. For example, if you happen to be talking to an attorney whose explaining challenges in their legal field, in your mind switch the word "attorney" with "appraiser." I think you will find many commonalities with other industries going through similar structural changes. Always have your ears open, listen, and also read extensively. New ideas can often come from unexpected places.

 

You've probably seen or felt that there are tangible benefits of collaboration and technology, but you aren't sure if it applies to an appraisal firm or if implementing is even feasible. I unequivocally say YES. It's feasible, it's doable! However, I strongly recommend taking baby steps. Take this test to see if your appraisal firm is collaborative.

Make collaboration a reality by slowly implementing technology so it doesn't hurt your current business practice. First step is meet with your appraisers at least one a month, maybe Friday pizza day and share best practices. Maybe loosen them up with some adult beverages and regain some repore your team may have lost in the everyday grind. Encourage your appraisers to open their eyes to working together, not competing with one another. There might be a gap between how you are working and how you should be working. What's the future of your work?