After a couple of months adjusting to retirement as a General Certified Appraiser that worked 27 years exclusively for the State of Missouri, I am taking some time to reflect on my position in the rest of the appraisal world. The first 25 years were fun and interesting and allowed me to grow in my skills. There were many positive aspects along with many changes in the real estate industry since the 1980's; too many to address in one blog. For the most part, I enjoyed the freedom to work on my own, have a home office that allowed me to put my family first, travel, and really get to know the people and properties in 25 counties in SW Missouri. Most rewarding was the confidence I developed in my appraisal skills as I grew in experience and education. I had the credentials of a bonafide commercial appraiser. The financial and other benefits working as a state employee exclusively are good and addressed in other areas of my blog.
The past couple years were negative experiences for the most part. I was surprised to find that letting go of the bureaucratic policies and procedures of the current client would be so easy...it was like opening a window and breathing fresh air! As Manager for the Ratio Section (4/06-10/07), I felt a similar exhilaration as I changed and created policies and procedures that had been established the previous 27 years from the only former manager, Jim Follina. What I did during that relatively short time completely changed what had been excepted before and it was extremely rewarding to be allowed to make all the changes I set out to do; or at least draw attention to areas that needed changes. We become transparent. I identified the areas of strength and of weakness and put policies and procedures in place to improve. I left the Ratio Section better than I found it. But my heart was in being a field appraiser and I was fortunate to be allowed to return to what I enjoyed the most and with a substantial raise in pay. It was more fun to be responsible for my own work than to enforce the new policies and procedures for a couple dozen staff appraisers. I worked about four years in the field as a Commercial Appraiser after I was Ratio Manager. I retired December 1, 2011; about three years after I became eligible to retire.
After returning to field appraising, the first two years were directly influenced by the policies and procedures I had put into place as manager. It was wonderful with a deep satisfaction in producing the kind of appraisals of which I was proud, that served the public with the truth, and were transparent produced in ways that explained the path to value followed by the appraiser. I felt I could do this work forever! The replacement manager accepted my work. My appraisals were not challenged by any assessor. My intuition, based on experience, was valued in my skills to develop market value. Intuition is an important aspect of appraisal when market value does not follow text book criteria due to a lack of sales in rural areas or any area with limited or no market activity. My skills are unique as is my experience valuing properties that have limited or no market value. Most of the properties I have appraised fit this description as an ad valorem tax appraiser. The validation of this unique skill comes with the retrospective nature in which properties are appraised for the client all in compliance with accepted standards (USPAP).
The last two years were directly influenced by the policies and procedures put into place by the replacement manager, Shawn Ordway. Although adequately experienced in his local family appraisal business (mostly residential-type appraisals) and serving the public as an elected official as Cole County Assessor (one uncompleted term), he also volunteered for the state appraisal board and served as chairman a couple years. He finally became a General Certified Appraiser in the year after I left the manager position. I had high hopes that he would continue the policies and procedures I had put into place and produce the Ratio Study Reports in a timely manor which is the main purpose of this section of the State Tax Commission as the oversight agency for the state in monitoring assessment offices. The Ratio Reports were not completed until 9/2011. Too many changes were implemented in the 2009-2010 Ratio Cycle. These changes have muddied the otherwise clear waters I left as manager.
There are too many areas to address in this blog but, specifically, the areas of concern were in sale validation and local multiplier tests. I was not comfortable using the replacement manager's tools in my appraisals and felt that they weaken, rather than strengthened, my appraisals. These inadequate tools and other policies and procedures took the "fun" out of appraising for me. Of course, I invited discussion of these methods and tools required by the replacement manager but soon realized that any "open door policy" was for appearance only and to watch your ass when you turn your back so as to not have that door hit you. Anytime I referenced my experience and intuition as part of my path to value (only used when no other defensible market value was possible), it felt like a witch-hunt and I was "burned-at-the-stake" for speaking of it instead of obediently applying tools that are not relevant. Appraising to serve the public has become appraising to serve the lawyers. I refused to "make" the so-called tools mentioned look like they are producing a reliable conclusion in my appraisals. I believe it to be misleading. I clearly stated when there was limited marketability and why experience and appraiser's opinion was the best indication of value. I had completed three counties that had been accepted and processed in this ratio cycle. I had the remaining three counties completed on schedule and awaiting final approval from the replacement manager. There was a six-month period when we could have worked out any problems between the time I completed the three remaining counties and his end date of this ratio cycle. The replacement manager was already months late to present a Final Ratio Report to the Commission for all 115 counties from all appraisers. My final three county appraisals suddenly became unacceptable on September 30, 2011 during a manager conference call that included my "silent supervisor." These three counties were no different than the first three counties that were approved in the beginning of the ratio cycle in the issues of concern. I felt like I was thrown under a bus and later that day in an email, told my supervisor and the assistant manager that I didn't see it coming. Their response was silence. At the end of that day, I started the retirement process which takes no less than two months. No one saw saw that coming either. I gave only two weeks written notice (6 weeks later) never speaking to the replacement manager again after his call on September 30, 2011. He is not the man that I thought he was in the first two years. If he is in fact the good man I thought he was, he changed under pressure from the Commission to reduce staff which is possible considering the declining economy and state budget. Because I was already eligible for retirement, I may be the one employee that may be affected the least. Whatever the case, I no longer have any respect for the State Tax Commission and do not want to waste anymore of my time with them. I trust my intuition that this was the right decision to retire at this time as I believe it would only get worse if I stayed. Now, four months after I decided to retire from the STC, I was right because I feel a great weight lifted and know in my heart I'm in a better place.
Unfortunately, my idea of integrity is no longer in the majority. The world has changed. The joy of appraising has changed because it has become necessary to make market value to protect yourself rather than see it for what it is and be honest that sometimes there is no other defensible marketability other than what is developed from experience and intuition. I want no part of an appraisal industry that has eliminated the human element. Time to move on to having a life that celebrates Intuitive Value.
Since real estate appraising has been such a large part of my life, I will take a break from it and re-evaluate if my experience and skills can again bring joy into my life. I need to jump in once in awhile now that I'm detached from any State Tax Commission influence and see if real estate appraising can be a joyful experience again...I'm not even sure I want it to be at this point. Rather than just stop being an appraiser, I will complete my Continuing Education (CE) for this term and pay for my license which will be good for another two years beginning June 2012. I only have one 7-hr class remaining at this point and that is Uniform Standards of Professional Appraisal Practice (USPAP) which I will take before June 2012. I want to keep my General Appraisal Certification which I attained in August 2005. If I cannot find any joy or desire to appraise when it comes time to renew again in June 2014, I will officially de-activate my license. Once that is done, to activate it again, takes 28 hours of CE (about $600) and pay the $300 license fee. I'll know by then if the joy of appraising is still in my heart. The world may change...right?
