The Hard Market and Accreditation of Appraisals

As the Insurance Market Tightens, Professional Appraisal Standards Matter.

Like many other professions, the appraisal profession has developed minimal practice standards. These standards describe the minimal and mandatory scope of work and report content required to provide clients and the public with credible and competent valuation services.

In the US the predominate appraisal standards are known as the Uniform Standards of Professional Appraisal Practice (USPAP).  USPAP is maintained by the Appraisal Standards Board which was established by the US Congress in 1989.  USPAP is updated every two years, and sets mandatory standards for ethics, competency, appraisals of real property, personal property and business interests, and conducting technical reviews.

Canadian appraisers followed USPAP until 2001 when the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) were introduced.  CUSPAP is maintained by the Appraisal Institute of Canada and is also updated every two years.  CUSPAP is similar to USPAP, however it also sets mandatory standards for reserve fund studies, and appraisals of machinery and equipment.

The “RICS Valuation Global Standards,” which is published by the Royal Institution of Chartered Surveyors (RICS), is widely viewed as mandatory appraisal and consulting standards outside of North America.

USPAP, CUSPAP, and RICS are each recognized globally as premier top tier valuation standards. These standards are accepted and, in many cases, required by all levels of government, lenders, investors and the courts.

How do you know if your appraisal report complies with these standards? A starting point is to ensure that the signing appraiser holds one of the following professional appraisal designations:

ASA – American Society of Appraisers
AACI – Appraisal Institute of Canada
MRICS – Royal Institute of Chartered Surveyors
MAI – Appraisal Institute

In addition to ensuring quality and credibility, adherence to professional standards is also important for errors and omissions insurance coverage. If a party suffers a loss as a result of a faulty appraisal, and the E&O insurance carrier determines there is willful non-compliance then coverage may be denied. Willful non-compliance may occur if an appraisal does not meet professional standards, or if the signing appraiser does not have a professional appraisal designation (ASA, AACI, MRICS, or MAI).

It is recommended that when one engages an appraiser that the service contract stipulates that the services to be provided must be in full compliance with either USPAP, CUSPAP or RICS; and that the report must be signed by a fully qualified appraiser that holds a recognized appraisal designation.

At Suncorp, all appraisal services we provide are fully compliant with either USPAP, CUSPAP, or RICS, and in many cases exceed the minimal standards.  All Suncorp Valuation Consultants have either earned or are working towards a professional appraisal qualification.  Furthermore, all Suncorp appraisal reports go through a rigorous quality control procedure and are then signed by a Senior Valuation Consultant (ASA or AACI) prior to being published to our client.

 

 

Contact Suncorp today for all your valuations needs.

 

CONTACT US

Valuation Consultant (VC-SK-19-19)

Valuation Consultant

1 Full Time Permanent Valuation Consultant

Saskatoon Office

Competition Number:  VC-SK-19-19

Headquartered in Saskatoon, Suncorp Valuations is a dynamic growth-oriented leader in the global valuation industry.  Through offices in Canada and the U.S.A, we offer a full range of valuation, consulting and costing services for land, buildings, machinery and equipment, and for intangible assets such as patents, copyrights and franchises.

Utilizing robust research methodologies, valuation consultants develop reports that provide an opinion of value for assessed property and other assets.  Clients utilize reports for a variety of requirements including regulatory compliance, financing, litigation support, mergers and acquisitions, purchase price allocation, insurance placement and claim settlements.  Risk Management Services assist clients by identifying and mitigating risks such as the potential for accidents, property damage and theft.  For further details please refer to our website at www.suncorpvaluations.com.

The Role.

We are seeking a Valuation Consultant to join our Public Sector Team in Saskatoon, SK.  The role reports to the Managing Director, Private Sector located in Saskatoon.  Through site inspections, research, expert analysis and collaboration, the Valuation Consultant develops a solid and defendable rationale for the final value assigned to specific properties and or assets.

This involves establishing the cost for the reconstruction of existing buildings and machinery and equipment, for insurance placement. This information is presented to clients in a valuation report.

The Ideal Candidate.

Along with the required credentials, you enjoy working with a group of professionals and excel at research and analysis.  Although you are able to work independently, you enjoy leveraging the knowledge of coworkers to complete accurate assignments.  You have no problem working independently, while collaborating with stakeholders in other offices.  You easily manage multiple projects and are naturally focused on providing internal stakeholders and external clients with high levels of service to meet our Brand Promise of ON TIME, CREDIBLE, PROFESSIONAL.  You have solid construction knowledge, ability to gather thorough information while at the same time finding efficient ways to complete assignments.   

The Requirements.

  • Degree or Diploma in Engineering, Architecture, Construction, Finance, Architectural Technology or a related field;
  • Must have solid construction knowledge;
  • Previous appraisal experience, an understanding of building design and the ability to read blueprints is an asset;
  • Appraiser designation will be considered an asset;
  • Willingness to travel to client sites, including extended stays and possible international travel;
  • Valid Driver’s License, clean driving abstract ,and access to safe and reliable transportation;
  • Provision of a satisfactory criminal background check;
  • Valid passport or ability to obtain a passport and no restrictions in obtaining a valid VISA for travel.
  • Willing and able to travel locally or internationally if needed.

 The Competencies. 

  • A genuine desire to go above and beyond to provide excellence in client service;
  • Proactive, with a desire to drive results and exceed goals;
  • Strong planning, organizational and time management skills;
  • Solid computer skills, including advanced knowledge of Microsoft Office Suite;
  • Able to work with complex spreadsheets;
  • Excellent oral and written communication skills with acute attention to detail;
  • Expert project planning skills with the ability to work on multiple tasks;
  • Able to collaborate, share knowledge and leverage expertise as needed;
  • Self-directed with the desire and ability to work independently.

We pride ourselves in offering flexible work arrangements that allow our employees to balance work and life commitments.

THE APPLICATION PROCESS: 

Please send your resume, cover letter and compensation expectations via email and include in the subject line the competition number, followed by your first and last name.

E-mail: HR@suncorpvaluations.com

Comp #: VC-SK-19-19

Deadline: Open 

We thank all applicants for their interest in this position, however, only those selected for interviews will be contacted.  Please note that we do not accept phone or email inquiries in regards to open positions.

 

Apply Now

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Appraiser

Appraiser

Grafton, WI

APPRAISER (Suncorp Valuations Inc- Grafton, WI) – Develop valuation reports for industrial properties. Conduct site inspections, research, expert analysis to develop a solid and well-documented rationale for the final value assigned to a property using the cost, market and income approaches to value. Up to 50% travel time, incl. international.

Requirements:
Bachelor’s degree in Finance, Economics,or related field, including coursework in Price Theory, Financial Analysis.
2 years experience as Appraiser.

To apply, please contact Mike Garcelon at mike.garcelon@suncorpvaluations.com

 

Apply Now

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Sports Franchises

The One Asset Class that keeps growing in value…but real estate is still a great hold!

As a full service appraisal company completing engagements around the world, we often get involved in unique valuations. Recently, we have been involved with or proposed on the valuation of facilities for sports franchises. Taking out the political issues around funding of these facilities and whether or not the investment on the tangible asset side is worthwhile, we definitely see that the value of the franchises themselves appear to be have some immunity from economic cycles and downward pressure on values.

Traditionally, we see economic cycles having 5 distinct phases (1):

During these cycles we see fluctuations in market value and insurable values, often in recessions we see market values dive while insurable values can stay the same or increase due to pressures as we are experiencing right now with shrinking capacity in the insurance market(s).

Interestingly, sports franchises seem to have immunity from these cycle forces, even if the team(s) are not successful in the field of play. Underlying the immunity is the strength of earnings for these franchises, no matter the general economic circumstance these franchises have expanded their earnings which in turn drives up values.“The discount bin is empty when shopping for teams in the major sports leagues. Every NFL, NBA and MLB franchise is now worth at least $1 billion.”(2)

Consider that Jerry Jones (Owner of the Dallas Cowboys) paid $140 million USD for the franchise in 1989. That converts to around $300 million USD in today’s dollars, annual inflation was around 2.5% over that timeframe. “In the last decade the Dallas Cowboys franchise value has increased by 220% (see below graph), even the lesser known NFL franchises have grown significantly. “(3) As the graph illustrates the value trend has stayed upward trending.

 

 

As comparative, let us look at an index of US Real Estate market values since 1998.

 

 

All Property CPPI weights: retail (20%), office (17.5%), apartment (15%), health care (15%), industrial (10%), lodging (7.5%), net lease (5%), self storage (5%), manufactured home park (2.5%), and student housing (2.5%). Retail is mall (50%) and strip retail (50%).
Core Sector CPPI weights: apartment (25%), industrial (25%), office (25%), and retail (25%). (4)

As you can see Commercial Real Estate in the US over time has increased but is subject to fluctuations based on economic cycles.

In looking at the volatility in general economic cycles, recessionary times can mean opportunities in real estate. Correlating the below graph on recessionary periods to the Green Street Commercial Property Price Index, we see a similar dip in real estate market values but values have had a general increasing trend. (5)

 

If you cannot own a sports franchise, commercial real estate is still a great hold!

 

REFERENCES:

5 Phases of Business Cycle

Kurt Badenhausen (July 22,2019). The World’s 50 Most Valuable Sports Teams 2019.

Cork Gaines (September 26, 2017). Jerry Jones paid a record $140 million for the Dallas Cowboys — the team is now worth $4.8 billion.

Commercial Property Index.

Jason Kirby (December 5, 2017). The 91 most important economic charts to watch in 2018.

Valuation Consultant VC-SK-19-19

Valuation Consultant

1 Full Time Permanent Valuation Consultant

Saskatoon Office

Competition Number:  VC-SK-19-19

Headquartered in Saskatoon, Suncorp Valuations is a dynamic growth-oriented leader in the global valuation industry.  Through offices in Canada and the U.S.A, we offer a full range of valuation, consulting and costing services for land, buildings, machinery and equipment, and for intangible assets such as patents, copyrights and franchises. 

Utilizing robust research methodologies, valuation consultants develop reports that provide an opinion of value for assessed property and other assets.  Clients utilize reports for a variety of requirements including regulatory compliance, financing, litigation support, mergers and acquisitions, purchase price allocation, insurance placement and claim settlements.  Risk Management Services assist clients by identifying and mitigating risks such as the potential for accidents, property damage and theft.  For further details please refer to our website at www.suncorpvaluations.com

The Role.

We are seeking a Valuation Consultant to join our Public Sector Team in Saskatoon, SK.  The role reports to the Managing Director, Private Sector located in Saskatoon.  Through site inspections, research, expert analysis and collaboration, the Valuation Consultant develops a solid and defendable rationale for the final value assigned to specific properties and or assets.  

This involves establishing the cost for the reconstruction of existing buildings and machinery and equipment, for insurance placement. This information is presented to clients in a valuation report. 

The Ideal Candidate.

Along with the required credentials, you enjoy working with a group of professionals and excel at research and analysis.  Although you are able to work independently, you enjoy leveraging the knowledge of coworkers to complete accurate assignments.  You have no problem working independently, while collaborating with stakeholders in other offices.  You easily manage multiple projects and are naturally focused on providing internal stakeholders and external clients with high levels of service to meet our Brand Promise of ON TIME, CREDIBLE, PROFESSIONAL.  You have solid construction knowledge, ability to gather thorough information while at the same time finding efficient ways to complete assignments.  

The Requirements.

  • Degree or Diploma in Engineering, Architecture, Construction, Finance, Architectural Technology or a related field;
  • Must have solid construction knowledge;
  • Previous appraisal experience, an understanding of building design and the ability to read blueprints is an asset;
  • Appraiser designation will be considered an asset;
  • Willingness to travel to client sites, including extended stays and possible international travel;
  • Valid Driver’s License, clean driving abstract ,and access to safe and reliable transportation;
  • Provision of a satisfactory criminal background check;
  • Valid passport or ability to obtain a passport and no restrictions in obtaining a valid VISA for travel.
  • Willing and able to travel locally or internationally if needed.

The Competencies. 

  • A genuine desire to go above and beyond to provide excellence in client service;
  • Proactive, with a desire to drive results and exceed goals;
  • Strong planning, organizational and time management skills;
  • Solid computer skills, including advanced knowledge of Microsoft Office Suite;
  • Able to work with complex spreadsheets;
  • Excellent oral and written communication skills with acute attention to detail;
  • Expert project planning skills with the ability to work on multiple tasks;
  • Able to collaborate, share knowledge and leverage expertise as needed;
  • Self-directed with the desire and ability to work independently.

We pride ourselves in offering flexible work arrangements that allow our employees to balance work and life commitments.

THE APPLICATION PROCESS: 

Please send your resume, cover letter and compensation expectations via email and include in the subject line the competition number, followed by your first and last name.

E-mail:             HR@suncorpvaluations.com  

Comp #:           VC-SK-19-19

Deadline:         November 8, 2019

We thank all applicants for their interest in this position, however, only those selected for interviews will be contacted.  Please note that we do not accept phone or email inquiries in regards to open positions.

 

 

Apply Now

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Valuation Consultant, Industrial Valuations Group VC-QC-19-18

Valuation Consultant, Industrial Valuations Group

Full Time Permanent Position

Montreal, Quebec

VC-QC-19-18

Suncorp Valuations is a full service appraisal and valuation consulting firm.  From offices in Canada and the U.S.A. we provide global valuation services for land, buildings, machinery and equipment, that is used for financing, litigation support, mergers and acquisitions, and insurance placement purposes.  For more information on our services please visit our website at www.suncorpvaluations.com.

The Role.

This full time permanent position is located in Montreal, Quebec and reports to the Managing Director, Industrial Valuation Group.  The focus of work is on the development of valuation reports for tangible assets in real and personal property.  This includes, but is not exclusive to banks, public and private companies, insurance companies, private equity groups and insurance brokers.  Through site inspections, research, expert analysis and collaboration, you will develop a solid and defendable rationale for the final value assigned to a property.  This requires the ability to develop, accurately prepare and present defendable conclusions of value, using the cost, market and income approaches to value.

The Ideal Candidate.

Along with the required credentials, you are seeking an opportunity to become a Valuation Consultant.  You are eager to learn, work with a group of professionals, and enjoy research and analysis.  Although you are able to work independently, you enjoy leveraging the knowledge of coworkers to complete accurate assignments.  You have no problem working in an office environment, while collaborating with stakeholders in other offices.  You easily manage multiple projects and are naturally focussed on providing internal stakeholders and external clients with high levels of service.  You enjoy a role that provides in-office work, client interaction, and travel to perform on-site investigation of client assets.

On a personal note, you are interested in developing your career through participation in internal and external professional development and enjoy a role that provides a combination of office work and travel to client sites.

The Requirements

  • University Degree or Diploma in a complementary discipline; Engineering, Physical Sciences, Finance, Economics, Construction, Architectural Technology or a related field;
  • Valid Driver’s License, clean driving abstract and access to safe, reliable transportation.
  • Willingness to travel to client sites, including extended stays, and international travel;
  • Bone fide requirements of the position include possession of a current or ability to obtain a valid North American passport and no restrictions that impact obtaining a VISA.

The Competencies

  • Willing and able to travel locally and internationally
  • Strong customer services skills;
  • Proactive, with a desire to drive results and exceed goals;
  • Strong planning, organizational and time management skills;
  • Solid computer skills, including advanced knowledge of Microsoft Office Suite;
  • Excellent oral and written communication skills with acute attention to detail;
  • Expert project planning skills with the ability to work on multiple tasks;.
  • Able to collaborate, share knowledge and leverage expertise as needed;
  • Self-directed with the desire and ability to work independently.

The Application Process 

Please send your resume, cover letter and compensation expectations via email and include in the subject line the competition number, followed by your first and last name.

E-mail:             HR@suncorpvaluations.com

Comp #:           VC-QC-19-18

Deadline:         Open 

We thank all applicants for their interest in this position, however, only those selected for interviews will be contacted.  Please note that we do not accept phone or email inquiries in regards to open positions.

 

 

Apply Now

  • Max. file size: 100 MB.
  • Max. file size: 100 MB.
  • File types permitted for upload are: doc, docx, txt, rtf, pdf