Commercial Appraisal Productivity Seminar Spend less time in the office Put more money in your pocket Handle more work Increase production levels Deliver more accurate reports Provide quicker turnaround times
WHO WE ARE Brenda Dohring Hicks, MAI Brenda Dohring Hicks, MAI, is CEO of The Dohring Group, a downtown Tampa based, commercial real estate appraisal, brokerage, development and technology company, and is also CEO of The Dohring Group s affiliate company RealWired!, a technology firm providing software solutions to the commercial real estate market since 1995. As one of the first women in the State of Florida to achieve the MAI designation from the Appraisal Institute, she has been active in appraisal, brokerage and development in the Tampa Bay area for more than 20 years. She served as Special Master Ad-Valorem Tax for the Valuation Adjustment Board of Hillsborough County for seven years and as the National Chair of Public Relations for the Appraisal Institute. She is a frequent speaker on real estate, business process and technology. Jeff Hicks, MAI R. Jeffrey Hicks, MAI is President of The Dohring Group, a commercial real estate appraisal, brokerage, development and technology company headquartered in Tampa, Florida. Mr. Hicks has appraised and supervised appraisers on a wide variety of property types including office buildings, shopping centers, apartment complexes, hotels and industrial. Other valuation specialties include eminent domain, and environmentally sensitive lands. He has worked with various condemning authorities such as the Florida Department of Transportation, Hillsborough County, Pinellas County and the city of Tampa and has also represented property owners. Mr. Hicks is a certified general appraiser in the state of Florida with 23 years of experience. He holds a Bachelor of Science in Real Estate from Florida State University and is an Member of the Appraisal Institute. 2
OBJECTIVE The Productivity Seminar will help you Think more like a businessperson and not a technician Compensate for declining fees due to increased regulation Increase your entrepreneurial skills Improve the look and content of your reports Substantively increase your productivity Change the way you do day-to-day things Increase your hourly wage Increase the value of your business Challenge your organizational skills Think like you're the owner even if you're not The Productivity Seminar will not Help you appraise property Mention USPAP Discuss capitalization rates 3
SECRETS OF APPRAISING 1. SPIOT- Sustainable Process Improvement Over Time 2. Get the number right 3. Have the best data, best presentation (no stupid errors) and best analysis possible 4
DO A GUT CHECK DETERMINE IF YOU, AS AN APPRAISER OR OWNER OF THE FIRM, HAVE AN OPEN ATTITUDE FOR POSITIVE CHANGE. 5
CONCEPTS CONCEPT 1: TRACKING PRODUCTION, VOLUME, HOURLY RATE AND GOAL SETTING Metrics and tracking of # of appraisers, # of reports to hit goals, etc. Production Charts and Metrics (beginning, intermediate, advanced) Accounts Receivable Policies 50% Retainer Mandatory One Off s Accountability Traps One Page Business Plan 6
TODAY S APPRAISAL WORLD How has your appraisal practice been doing in the past year? How is your workload? What are your fees like? How you been letting staff go, retaining, or bringing more people in? Do you feel pessimistic or optimistic about the coming year? If you were the president and could wave a magic wand on this industry, what would you do to make things improve? 7
GOAL SETTING Before you pick up the next appraisal file, consider the following questions: What was my appraisal production this week, this month and this year? Which client provided the majority of work this year and what dollar amount? What percentage of my reports last year were restricted use, summary and self-contained? What is my profit margin with the three reporting styles? (Hint: the highest $/hour is not self-contained) What percentage of jobs turned into engaged assignments (or probably more interesting, what percentage of jobs did you lose?) Based on your direct competition, where is your pricing (hopefully it is at the high end of the range)? What percentage of jobs are delivered early or on time? What percentage of jobs are delivered late? What has been the trend of your appraisal volume and pricing - downward, upward or static? 8
Production Tracking Reviewing the numbers in the following area helps build a better understanding of the impact of these ideas: Appraisal Group Production Company Assessment Hourly Wage Calculations Average Fee Schedule 9
HAPPINESS PRIORITY LIST Money Time Education Auto Pilot Implementation Networking Life/Work Balance Give Back 10
CONCEPTS CONCEPT 2: PAID VS NON-PAID TIME GOAL: Make as much money as possible in as few hours possible. Paid vs Non-Paid Time Daily Time Log Web Based Tracking Daily Log Chart How to Avoid Unpaid Consulting 11
PAID VS. NON PAID ACTIVITIES Paid Activities Inspections Putting Sales in Comp Database Research & Searching for Comp Data Confirming Comp Data Bidding on Jobs and Managing Workflow Dictating and Writing Reports Reviewing Reports Business Development Non-Paid Activities Checking Email Being your own IT Person Learning new programs/software Returning voicemails/messages Delivering Reports Office Meetings 12
TIME MANAGEMENT Weekly To-Do Log Daily Time Log Incremental Daily Time Log 13
CONCEPTS CONCEPT 3: PRIORITIZATION Goal: Do the things that are the most important first 14
EASY PRIORITIZATION Call client about changes to report Clean up and file Outlook Inbox Prospect for new business Set up this week s inspections Review Commission Schedule Speak with accountant Review report for Jesse 15
EASY PRIORITIZATION Call client about changes to report 1 Clean up and file Outlook Inbox Prospect for new business Set up this week s inspections Review Commission Schedule Speak with accountant Review report for Jesse 3 2 3 16
CONCEPTS CONCEPT 4: GOAL: Track the important stuff CRM (Live, Dashboard, Tasking) Appraisal Ordering Data form How do you track who does what and when it gets done? Pricing Strategies Appraisal Bidding Process Automated Appraisal Management System 17
WHAT YOU DO 18
MANAGER Appraisal Office Buckets 19
MANAGER 20
MANAGER 21
MANAGER 22
MANAGER 23
MANAGER 24
CONCEPT 5: CONCEPTS GOAL: Have reliable, repeatable processes OFFICE SYSTEMS/PC MAINTENANCE Back-up PC s(data) Back-up fully functioning workstations Exchange(E-mails) Managed Services 3-4 Computers Screens Dragon Uniformity of equipment Cell phone, Computers, Headsets 25
CONCEPTS CONCEPT 6: GOAL: Move through the report generating process smoothly APPRAISAL PROCESS TIPS Upfront discussions with appraiser. Go over issues, expectations Inspection Tips (deferred maintenance, new valuation issues) Communicate with clients during process, review if complex appraisal Google subject and all comps Communicate new market research, valuation issues with all appraisers Outsource opportunities 26
CONCEPT 7: CONCEPTS GOAL: Run a practice like a business Introduce E-MYTH Stop just working in the business and work on the business. It's an important distinction. Can you see it? It's right in front of you. E-Myth Overview Chart Dohring Companies Processes Employment Position Statements 27
STRATEGICALLY THINKING Here are a few questions to ask yourself: How many more years will I appraise? Do I have an appraisal business successor? Does my appraisal practice have any real value? Do I have a business plan and do I update it? 28
STRATEGIC PLAN TEMPLATE 29
CONCEPTS CONCEPT 8: GOAL: DATA ORGANIZATION Productive File Structures Establishing new job process and tracking Template and component parts How much time does it take you to find and confirm sales/comps Internet, CoStar, Loopnet, Commercial IQ, Corporation Look up 30
Appraisal Firm Owners WHAT WE HEAR Appraisers around the country tell us. My appraisers slow down when they have less work on their desk. My appraisers refuse to take the time to consistently update neighborhoods, market data and zoning descriptions. My appraisers do not embrace technology and are unwilling to change how they produce reports. Staff Appraisers Office procedures and production goals are not written down and are halfhazard. The owner and/or reviewer is inaccessible which makes gaining experience difficult. The owner does not embrace technology and is unwilling to change how they produce reports. 31
DATACOMP Run search for Comps and print to an adjustment grid 32
DATACOMP DataComp Improved Sales Summary Template in Excel before and after data is merged 33
DATACOMP DataComp Sample Summary Table output in Word for 5 comparables 34
DATACOMP DataComp Sample Word output with picture 35
CONCEPTS CONCEPT 9: REPORT WRITING Exploring & Implementing Appraisal Report Process and Automation Pitfalls: What are some objections to Report Writing Software? EDGE Cut and Paste Templates 36
EDGE EDGE set up showing how you create a project and select your Input Template (Excel) and Output Temple (Word). Once you have selected your Input Template and specific Output Template (Restricted, Summary or Self Contained) you then create a New Project. 37
EDGE EDGE Input screen with Tabs at the bottom. Tab 1 38
EDGE EDGE Input Screen Tab 2 39
EDGE EDGE Drop Down Field Type 40
EDGE EDGE Multi Text Field Type 41
EDGE EDGE Link Field Type 42
EDGE EDGE Output Screen in Word. Cover Letter with keywords before and after data is merged 43
EDGE Summary Table before and after data is merged 44
EDGE Intended Use/Client and Intended Users Page before and after data is merged 45
FINAL THOUGHTS Risk: A state of uncertainty where some of the possibilities involve a loss, catastrophe or other undesirable outcome. Do not stop working on getting more business and networking when busy. Continue to improve your internal systems. Purchase and implement software solutions to increase appraisal production. Define production goals, then track your appraisers' production. Return phone calls and emails promptly. Communicate with your clients quickly when appraisal issues arise. 46
SECRETS OF APPRAISING 1. SPIOT- Sustainable Process Improvement Over Time 2. Get the number right 3. Have the best data, best presentation (no stupid errors) and best analysis possible 47
Commercial Appraisal Productivity Seminar For More Information Contact: Brenda: brenda@realwired.com Jeff: jeff@realwired.com 813-349-2700 www.realwired.com