Posted by Cochise on July 29, 2008 at 13:52:26:
In Reply to: Re: AI, Appraisal Institute, MAI, TAX FRAUD, TAX AVOIDANCE posted by cochise on July 14, 2008 at 12:21:58:
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Stephen J. Vertin, MAI
I have seen the business from two sides. Being designated and not being designated. The first year I was designated I counted the dollar amount of business achieved due to being an MAI. It was an additional $45,000 that year (1993).
I think you just proved that the MAI IS cost effective. If you are aware of 3-4 times a year that clients pay an extra $1,000, that's $4,000 right there. Last time I checked, dues are less than that.
My guess is that for every job that you can charge the extra $1000 for, there are probably at least 4-5 you don't even get a call on because they know that you don't have the magic letters.
I would have to partially disagree with your statement. I have yet to meet a MAI who thinks the process was not worth every penny, even in smaller markets. I certainly don't think it would be a handicap.
A great majority of our work is because my boss is an MAI....and our fees are a lot more than most non MAI shops. I wish I were younger, had found this profession when I was a lot younger and could get an MAI.
If you work for, or are an MAI, and are honest, you will have a lot more work in most locat1ons.
I have never met an MAI who discounts me as a CG because of my lack of an MAI, and the classes I have taken taught by MAI's (although expensive) have been first rate.
I am not sure the debate is about the bad vs. good MAIs out there. Frankly I think if you even have to debate whether or not the designation is a good thing by individuals who hold the designation, it must have some value. I have lost more business not having the designation, then I care to count. I am in the process of finishing mine just need to take the Income Cap Comp part and submit my demo. It is a lot of work, and a very expensive process...more so then just the dues per year. Most of the MAIs I know are fetching anywhere between $30,000 and $150,000 per assignment, doing work I am not sure could have ever been valued. Its not to say the designation got them that work, it is fair to say that over time because of their designation and the doors it opened they were given expereince that eventually led them to the high fee work. All of these guys are in their 50's, I'm not quite 30, frankly after these guys retire there are not many coming in back of me...so basic economics suggests low supply of MAI appraisers, high demand for MAI appraislas = higher prices for MAI appraisers.