As a professional involved in the banking/mortgage industry, you deal with real property appraisals probably on a daily basis. As a result, you need an understanding of how real estate appraisals are developed and how to interpret them in order to make well-informed decisions regarding lending and asset disposition. This seminar will provide an overview of the appraisal process using real-world examples and illustrations and provide the knowledge and skills you need to make effective use of real property appraisals with particular attention paid to their use in the lending and credit decision making process. The applicable regulatory environment will be considered from a practical standpoint. Both residential and commercial real property appraisals will be considered. Beyond the usual lending function of the appraisal, emphasis will also be given to how the appraiser can assist you in your underwriting and decision process. Further, the seminar will address how the appraiser can assist in future business development and strategic planning for the lender.
8:30 a.m. - 8:50 a.m.
A. Instructor And Class Introductions
B. Seminar Objectives And Schedule
8:50 a.m. - 9:30 a.m.
II. Banking Regulations Relating To Appraisals
A. FIRREA And The Foundation For Current Regulations
B. USPAP, The Appraisal Foundation, And State Licensing
C. 12 CFR Part 34 And Related Regulations
D. Appraiser Independence And Borrower Ordered Appraisals
9:30 a.m. - 10:00 a.m.
III. Market Value And Other Value Concepts
A. The Nature Of Value
B. Market Value And Other Value Definitions
C. Property Rights Appraised
D. Estimate Or Opinion?
10:00 a.m. - 10:10 a.m.
10:10 a.m. - 12:00 p.m.
IV. The Appraisal Process
A. Definition Of The Problem
B. Scope Of Work/Scope Of The Appraisal
C. Data Collection And Property Description
D. Data Analysis – Market Analysis And Highest And Best Use Analysis
E. Land Value Opinion And The Three Approaches To Value
12:00 p.m. - 1:00 p.m.
Lunch (On Your Own)
1:00 p.m. - 2:00 p.m.
V. Scope Of The Appraisal; Appraisal Options; Ordering The Appraisal
A. Limited vs. Complete Appraisals
B. Appropriateness Of Limited Appraisals
C. Reporting Options
D. What To Tell The Appraiser And Questions To Ask
2:00 p.m. - 3:15 p.m.
VI. Special Situations In Valuation
A. What Happens When The Improvements Are The Not The Highest And Best Use Of The Land?
B. Proposed Construction
C. Subdivisions And Properties Requiring Absorption
D. 'It Didn't Make Value!'
3:15 p.m. - 3:25 p.m.
3:25 p.m. - 4:15 p.m.
VII. Other Services
A. Initial Lending Underwriting
B. Due Diligence
C. Financing Structure
D. Development Consulting
E. Regulatory Examinations
F. Regional Analyses
G. Strategic Planning
4:15 p.m. - 4:30 p.m.
VIII. Seminar Wrap-Up