It’s a question that we recently put to a host of industry experts and (as we expected) their hypotheses proved to be both compelling and insightful. For the full story, you’ll have to take a look at the full article in the next (November 2008) BVU. In the interim, below are a few of the comments offered by the BV experts that we queried:
—Some of the big picture issues resulting from the current financial problems impacting BV could be (1) a reassessment of mark to market and fair value accounting issues and the trickle down affect that could have on BV; and (2) closer scrutiny of the BV work product (If real estate appraisers were one of the scapegoats for the S&L crisis, BV could become one of the scapegoats in the current problem). More practically, a sustained economic slowdown could change the product mix of the BV industry….less transactional work and more litigation work. Quality appraisers will always be in demand. Bill Quackenbush, ASA, CBA (Advent Valuation Advisors, LLC)
—The problems today will be the basis of a lot of future litigation that will need valuation experts. Gilbert Matthews (Sutter Securities Incorporated)
—There will be more assignments as client look to readjust their financial position but fees will be harder to collect. We should also expect more regulation of our profession as stakeholders are more accountability. Jay Fishman, FASA (Financial Research Associates)
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