Because much private, corporate, and public wealth lies in real estate, the determination of its value is essential to the economic well being of society. It is the job of the professional appraiser to determine these values by gathering, analyzing, and applying information pertinent to a property.
Unquestionably, the professional opinion of the appraiser, backed by extensive training and knowledge, influences the decisions of people that are involved in real estate. And because the appraiser is trained to be an impartial third party in the valuation process, this professional serves as a vital "check in the system."
Qualifications of Appraisers: Licensing
All states require appraisers to be, at a minimum, state licensed or state
certified. In the State of Illinois, there are three categories of mandatory
licensure for appraisers: Licensed, Certified Residential, and Certified
General. All appraisers were required to be either licensed or certified
as of December 31, 1992 in Illinois.
The requirements for licensing have become more strict over the years.
Between 1992 and 1999, Illinois did not have a trainee level and could
do work unsupervised without experience. Originally, an appraiser needed
75 hours of coursework to become licensed. To become Certified Residential,
it required 120 hours of education to become Certified General the requirements
are 180 hours of education.
The criteria has increased over the years and in 2004, new education
criteria were adopted to take effect in 2008. It includes mimimum national
requirements that each state much implement. Appraisers will need 200
hours for Certified Residential and 300 hours for Certified General.
For more information, please visit the State
of Illinois Appraisal division website or the Appraisal
Foundation website and search for '08 Qualification criteria changes.
Qualifications of Appraisers: Professional Designations
There are dozens of professional organizations that appraisers may choose to join or associate with, all of which differ in membership requirements. However, they all have something in common: continuing education requirements and admonishment procedures for violating ethics and standards.
The credible organizations offer professional designations that are awarded upon successful completion of appraisal courses with comprehensive examinations, proof of macys coupon code 2014
experience through personal interviews with admissions committees who verify the candidate's experience, and a demonstration appraisal report which could be compared to a master's thesis. Once designated, an appraiser typically must participate in continuing education programs.
These organizations have agreed to adhere to the Uniform Standards of Professional Appraisal Practice, which have been established by the Appraisal Foundation and adopted by various federal agencies. These standards must also be adhered to by all state licensed or certified appraisers.
There are other appraisal organizations that require limited or no education or practical experience, no re-certification, and no ethical expulsion provisions. On of these organization's requirements are so loose that an individual’s cat was once given a designation.
The Appraisal Institute, the nation's largest trade organization for appraisers, encourages appraisers to go beyond the minimum requirements of a state license to earn a professional MAI, SRPA, or SREA general designation or the SRA or RM residential designations. Currently, the Appraisal Institute offers only two membership designations, the MAI and SRA, while the other designations are a result of a 1991 unification of two organizations that merged into the Appraisal Institute. These organizations were the American Institute of Real Estate Appraisers, (founded in 1932) and the Society of Real Estate Appraisers (founded in 1935).
The National Association of Independent Fee Appraisers is another organization awarding professional designations beyond state licensing. The NAIFA (founded in 1961) confers the IFA designation for the residential appraiser, the IFAS designation for the income-producing property specialist and the IFAC designation for the experienced professional in counseling.
Effective July 1, 2018, the NAIFA merged with the American Socienty of Appraisers.
The American Society
of Appraisers awards the ASA designation to its members specializing
in the appraisal of real estate. The American Society of Appraisers
also has members who specialize in the appraisal of machinery, equipment,
intangible property, and personal property.
Designated members of both the Appraisal Institute and the American Society of Appraisers have fulfilled rigorous education
and experience requirements, obtained a college degree or its equivalent,
and must adhere to strict industry standards and a professional code
of ethics.
Types of Real Estate Appraisals
In our complex society, one may need and use the services of a real estate appraiser for a variety of reasons. Depending upon the appraiser's designation, qualifications, experience, or affiliations, he or she can provide many or all of these services:
Residential Appraisals my offer many different purposes, including to secure a mortgage or second mortgage, employee relocation, estate value, donation and gift taxs per IRS guidelines, divorce, insurance, condemnation, establishing value for purchase or sale purposes, or removal of private mortgage insurance.
Aside from residential appraisals, other services include: Income-producing Property Appraisals (Commercial/Industrial), Absorption Studies, Arbitration, Business Valuation, Condemnation, Cost & Benefit Studies, Counseling and Consulting, Evaluations, Litigation Preparation and/or Expert Witness Testimony, Feasibility Studies, Management Advice, Market Analysis, Market Rent & Trend Studies, Operating Expense Analysis, Tax Assessment Review and Advice, andZoning Testimony.
Our professionals may be able to provide these services to you, and if not, we will be able to refer you to a qualified expert to suit your needs.
Specialized Residential Appraisal Services -
Relocation Appraising
Appraisers, who practice other specialized types of appraising, such as corporate relocation appraising may join organizations such as the Worldwide ERC (Employee Relocation Council), which is an organization committed to the transfer of employees. ERC was founded in 1964 and awards the CRP and SCRP designations to the relocation professional. The CRP designation are awarded through proof of industry experience and passing a comprehensive examination, while the SCRP is awarded to the CRP-designated individual who has given back to the relocation industry through involvement on committees, speaking at ERC’s national conventions, and authorship in publications such as Mobility Magazine.
There is an organization that was founded by a number of the nation’s premier relocation appraisal specialists in 1989. Relocation Appraisers and Consultants (RAC) is a nationwide organization consisting of appraiser members which is acknowledged by the users of relocation appraisals. Although a designation is not awarded, to qualify for membership, a RAC member had to meet stringent standards to be considered for membership. Each member of RAC must show proof of recent relocation-related courses and references from management level relocation clients. Furthermore, RAC members must demonstrate their understanding and ability to apply ERC appraisal guidelines, including Forecasting, by providing demonstration reports that are reviewed by an admissions committee.
Understand Your Rights in the Appraisal Process!
In the residential appraisal process, the homeowner should understand that the appraiser’s client is not the homeowner, but rather the lender or financial institution that hired the appraiser. The appraiser has no obligation to provide a copy of the appraisal to the homeowner, even though they may be directly or indirectly paying for the appraisal. The appraiser is bound to professional standards and a code of ethics, which includes confidentiality, which does not allow the appraiser to release the appraisal to any other party other than the defined Intended User (client) of the appraisal.
But the homeowner should know that under the Equal Credit Opportunity Act, the lender must provide a copy of the appraisal report upon the homeowner’s written request. If the homeowner is dissatisfied with any information contained in the appraisal report, they should contact the lender immediately.
More about professional appraisal designations
Article published by Alvin "Chip" Wagner III, SCRP, SRA, IFA in the
October 2000 Employee Relocation Council (ERC)
MOBILITY magazine (MOBILITY
Online): "What
Exactly Do Those Letters Stand For, Anyway?"
Article by Coleen
C. Morrison, IFA, GAA of Total Real Estate Services, Inc.:
"I Want To Become An Appraiser"
