Chapter 18. THE PROFESSIONAL APPRAISER. CHAPTER TERMS AND CONCEPTS. Fee appraiser Impartiality Institutional appraiser Integrity Jurisdictional Exception Rule Professional societies Record Keeping Rule Scope of Work Rule. Appraisal licensing and certification Competency Rule Conduct
THE PROFESSIONAL APPRAISER
List the five key elements to becoming a competent appraiser.
Define the typical state requirements for appraiser licensing and certification.
List two major organizations of professional appraisers.
Outline the first two standards of the Uniform Standards of Professional Appraisal Practice (USPAP).
Discuss the different positions open to appraisers.
1. Trainee License: Appraisal of properties that the supervising appraiser is permitted to appraise, under close supervision.
2. License: Appraisal of non-complex one to four-unit residential properties, up to a transaction value of $1 million; complex properties only up to a transaction value of $250,000.
3. Certified Residential: Appraisal of all residential properties, regardless of transaction value or complexity. Federal guidelines limit this practice to property with one to four dwelling units. Appraisal of nonresidential properties with a transaction value up to $250,000 is also authorized.
4. Certified General: Appraisal of all real estate property transactions, without regard to property type, transaction value, or complexity.
The AQB will require the 30 specified college semester credits for those seeking to be a licensed Residential appraiser, and will delete it as an option for those seeking the Certified Residential and Certified General licenses, effective January 1, 2015.
1. The appraiser should not have an undisclosed interest in the property being appraised.
2. The appraisal fee should not be contingent on the amount or direction of value concluded, or on the occurrence of any event.
3. The appraiser should not directly pay or receive referral fees, so that referrals will be objectively considered.
Work is varied.
Work is challenging, since no two properties are alike.
Work involves us with what is going on in our town.
Can perform appraisal inspections at our own convenience to an extent.
There are a number of related areas in real estate where our knowledge is also useful.
Becoming a competent appraiser requires many different skills. Besides pursuing a formal education, you also need to develop your knowledge of markets and real estate operations. This kind of knowledge is more often gained in the field than in the classroom.
Having sound judgment is also an important skill for an appraiser. Developing good judgment usually comes from a combination of experiences: in the field, in education, and most important, as a result of self-review. Integrity is also essential! Appraisers must be able to say “no” in order to succeed!