NAR Urges Appraisal Foundation To Establish Equivalency Credit for Education and Experience
Excerpts: The AQB previously considered the option of allowing parallel professional non-appraisal experience. In a July 9, 2015, Concept Paper – Alternate Track to the Experience Requirements in the Real Property Appraiser Qualification Criteria, the AQB asked: “Are there practical alternatives for some (or all) of the appraisal experience requirements to include non-appraisal experience?”
The National Association of REALTORS® believes there are alternatives to some of the experience requirements that the AQB should consider.
NAR sent a letter to the Appraisal urging the Appraisal Foundation (TAF) to review the experience and education of workers in parallel professions and consider it for potential credit to satisfy the accreditation requirements of appraiser licensing.
Excerpts from the letter:
… including, but not limited to, experience in real estate market analysis and real estate brokerage, including:
• Evaluating and pricing residential real estate
• Counseling buyers, sellers, owners, and tenants on inspections and remediations, improvements, and the appraisal process
• Counseling buyers, sellers, owners, and tenants about listing and offering prices, and market rent
• Completing broker price opinions and Competitive Market Analyses
• Completing Evaluations in compliance with the Interagency Appraisal and Evaluation Guidelines
• Compliance with Fair Housing laws, rules, and regulations
• Compliance with the Equal Credit Opportunity Act
To read the letter (PDF), click here
My comments: Real estate agents and brokers are salespersons. They provide CMAs, etc., which can relate to valuation. I don’t know if Realtors can be re-trained to see value rather than price. I speak with a lot of Realtors and many are not oriented the same as appraisers.
Over the years, I observed that successful real estate agents seldom switched to the much less profitable appraisal side. Persons who started in sales but were not very good sometimes went into appraising.
On the other side, appraisal provides excellent experience for real estate agents. I know some successful agents who were trained as appraisers and appraised for awhile. There are also agents/brokers who are licensed appraisers and do both. Appraisers with real estate sales experience know real estate from the “inside” by interacting with buyers and sellers. Appraisers are real estate reporters.
Does NAR want to allow some appraisal experience and education instead of 100% sales experience and more than one appraisal class for a broker’s license? What about a salesperson license?
I have been a licensed real estate broker since 1986. I got it mostly for MLS access and have only done one sale, representing the buyer. At that time, no sales experience was required for a broker’s license, only a 4-year degree. I am familiar with the current experience requirements for a broker’s license. Can appraisal experience count for some of these experience requirements? It should go both ways.
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