Appraisal Institute Update for the Second Quarter of 2024

Chicago, IL, July 19, 2024 The Appraisal Institute, the leading association of real estate appraisers, released an update for the three months ended June 30, 2024.

The second quarter saw increased onboarding of professional resources needed to reverse long-term declines and reset the organization onto a positive footing, as well as continued cost cutting and improvements in member service operations. Along with major upgrades in the quality of staff and professional resources, and greatly improved teamwork and productivity from team leads and their teams, highlights for the quarter include improving the member value proposition, expanded engagement with current and potential members to unify the profession, increasing the impact of Appraiser-centric advocacy and enhancing the technology stack to continue to improve operations, with an emphasis on the customer experience.

Additional revenue shortfalls relative to historic projections for education and membership revenues were identified with the help of new Appraisal Institute team leaders. These shortfalls result from fundamentally flawed assumptions in the 2023 budgets, combined with deteriorating performance exacerbated by long-term disinvestment in key value drivers and reliance on outdated technology platforms. Additional significant cost cutting, and efficiency gain opportunities have been identified, especially in non-revenue generating and non-member service delivery areas. The timeline for the Appraisal Institute's return to financial health will depend on the pace of right sizing and eliminating Appraisal Institute expenses that do not support revenue generation or the delivery of education and member services and benefits.

Second Quarter Highlights

"Appraiser-Centric" Communications and Advocacy

• Released the second in the "What I Value" video series highlighting real estate appraisers' values and professional value-add, featuring Adam Bogorad, MAI, 2024 President of the Appraisal Institute Southern California Chapter.
• Refined and expanded "Appraisal Now" weekly newsletter, received by over 30,000 appraisers and real estate industry contacts. Engagement rates steadily increasing, member feedback overwhelmingly positive and new content marketing analysis and tools applied as of the end of Q2. "From Cindy's Desk" CEO commentary, educational and chapter updates, and regular appraiser-related national real estate industry news among most popular features.
• Steady and strong growth in Appraisal Institute social media following and engagement since the mid-February re-launch of the Appraisal Institute's social media channels.
• Professional production team engaged and delivered upgraded graphics, equipment and format for the Q3 re-launch of the Appraisal Institute's "Face Value" podcast, co-hosted by Tonia Vailas, MAI, AI-GRS and Warren Boizot, SRA, AI-RRS.
• Second of quarterly "Appraiser-centric Advocacy" member seminar planned and held for over 230 participants in early Q3, focused on the ways the NAR settlement may affect the real property valuation profession. The webinar also highlighted key Advocacy initiatives and priorities reviewed and promoted Advocacy's Key Contacts program.

Education and Publications

• Successful launch of "Trending Topics Thursday" webinars every other week with 200-500 attendees (and a record 1,700 registrations for July 18's webinar). Trending Topics Thursdays promotes and attracts members and prospective members to the Appraisal Institute's thought leadership and educational offerings. 
• Redesigned Valuation Magazine as an external facing publication for the industry set for relaunch in July. A similar upgrade is planned for the Appraisal Journal.
• Advanced planning, with Chapters, for Institute Wide in person QE and DE delivery, and new educational content building.
• Continued staff management including hiring and performance management related to align the education team's structure and operation of the education enterprise with strategic execution goals to expand education offerings.

Membership & Chapter Relations

• New Customer Service Software implemented with a soft launch internally and external launch planned for early Q3.
• Completed process improvements to Chapters including email distribution and system connectivity via internal systems access.
• AMS Process improvements and system development continue to simplify processes related to invoicing, credentialing, and continuing education support.
• Upgraded reporting and analysis of membership trends by category and planning for the launch of Membership Value 2025, to highlight the Appraisal Institute's upgraded membership value proposition.
• Planning and staging for the first of our monthly membership surveys beginning at the start of Q3.
• Website remediation and upgrades include gating members-only value-add content and editing for Appraiser-centric messaging.

The Next Generation of Diverse Appraisers - "Pathways"- Focus on PAREA

Within the "Pathways" program, encompassing ADI, University Relations, and AI PAREA, AI PAREA has now launched its pilot program participants. A comprehensive review of the program as initially planned and funded is currently underway.

"Even as we recognize that real change requires hard work and a focus on investment in the foundations of improved advocacy, member engagement and educational offerings, we are heartened to see an outpouring of interest and support from the community of appraisers, especially residential appraisers. We are proud to be building a better organization to serve our designated appraisers and all appraisers as well as those professionals from bankers to realtors who seek engagement with real property valuers," said CEO Cindy Chance, PhD.

Board President Sandra Adomatis, SRA, added, "It is critically important for the future of the profession that a strong and relevant Appraisal Institute continue to provide community and quality education as well as being a powerful voice in support of our profession and the public trust."