ASA Spotlights Its Going Concern Specialty Designation

In light of ASA’s new Going Concern Specialty Program, designed for those appraisers who have already earned their ASA Designation and value complex commercial real estate with a business component, such as car washes, fueling stations/c-stores and lodging properties on a regular basis, we interviewed one of the top industry experts, Ernest Demba, FASA. During these classes, students will get a thorough, hands-on learning experience designed to provide the experienced appraiser the knowledge and understanding needed to perform going concern valuations, and will walk away with a useable overview and basic understanding of how to appraise an RPGC and provide an allocation to the components.

ASA sat down with instructor Ernest Demba, FASA,FASA-RP, IFAS, FASA-ARM-RP for a Q&A to discuss this unique class.

Q: What is the ASA Going Concern Specialty Designation Program?

A: The short answer is that it is a unique structured sequence of study that provides the practicing appraisal professional a background in being able to apply the fundamental principles of valuing going concern properties and apply the discernment principles to such properties to properly appraise them. 

In more detail, the Real Property Discipline Committee, alone with the necessary input from the Business Valuation Discipline, developed a two-class educational program along with an experience and work product review exam to be implemented for this Specialty Program within the Real Property Discipline.  After careful review by the ASA International Board of Governors, the Program was approved and the educational classes, RP-400 and RP 401 were first offered a few years ago by the main textbook author, Dean Wilson.

Q: What market conditions are driving this opportunity?

A: The most important market force is that the market demands better, and more educated Real Estate Appraisers and the ASA can supply that demand with this Going Concern Specialty.  ASA educated Specialty educated appraisers can distinguish themselves from others in the market and fill the expanding market need in this area.  The residential appraisal market is tending to contract while the Going Concern appraisal market appears to be expanding.

Q: Why should real property appraisers consider ASA for their Going Concern professional development?

A: The ASA is the only nationally recognized educational provider member of The Appraisal Foundation with a multi discipline organizational foundation and educational background to provide the overview necessary to provide a quality Going Concern Program. 

Let me break that down into parts.  A going Concern valuation is more than just looking at real estate at an address.  There are components of real property, machinery and equipment, personal property, possibly gems and jewels, and intangibles all mixed up and combined into a Going Concern operating at that address.  What is needed is a valuation which considers the intermixing and interactions of all these disciplines.  And the ASA is the only Foundation member which has all these disciplines, with their educational programs and members available for advice and consultation.  The ASA is the only educational provider that has the resources, the educational classes, and program in place to provide the knowledge and expertise to the practicing appraiser necessary to compete in this changing market environment.

Q: How will real property appraisers benefit from earning the ASA Going Concern Specialty Designation?

A: The benefit comes from being better educated compared to their peers.  Another benefit is through the contacts with the other students and other ASA members they will meet by going thru the program.  Another benefit is the quality and quantity of engagements that are possible once the Specialty is earned.  Of course, this is all dependent on the efforts of the appraiser, but the continuing education is mandated by the states, so why not look to the greatest return for the time spent.  And this greatest return is the ASA Going Concern Specialty as the best designed and implemented as no others are designed with the necessary other disciplines. 

To register for ASA’s RP400-000 class, Allocating Components in Going Concerns Appraisals happening on August 2-13, click here.

To register for ASA’s RP401-000 class, Going Concern Appraising for Real Estate Appraisers happening on October 20-23, click here.

Ernest A. Demba has been designated with senior appraisal designations: FASA, FASA-RP, FASA-ARM-RP, FRICS, CVS, and IFAS. He is certified by Missouri and Illinois and Michigan as a Certified General Real Estate Appraiser and is licensed as a Registered Professional Engineer in Missouri. (PE). Mr. Demba’s college education includes a BSEE degree, an MS degree in engineering and an MBA degree. In January 2009, Mr. Demba was voted a Life Membership in the American Society of Appraisers. Mr. Demba is also an AQB Certified USPAP Instructor by the Appraiser Qualifications Board of The Appraisal Foundation.