Real Estate Appraisal: A World of Change John S. Brenan Director of Research and Technical Issues The Appraisal Foundation (202)

FIRREA Relationships

The Appraisal Foundation Mission The Appraisal Foundation was founded to foster professionalism in valuation by promoting professional appraisal standards and appraiser qualifications.

The Appraisal Foundation The Foundation IS: A non-profit educational organization; Founded by 8 national appraisal organizations; and Created to foster professionalism in appraising. The Foundation is NOT: A government agency or regulatory board; Created by Congress; or An appraisal trade organization that offers designations.

Sponsoring Organizations Appraisal Sponsors American Society of Appraisers American Society of Farm Managers & Rural Appraisers Appraisal Institute International Association of Assessing Officers International Right of Way Association Massachusetts Board of Real Estate Appraisers National Association of Independent Fee Appraisers National Association of Master Appraisers Affiliate Sponsors American Bankers Association Farm Credit Council Mortgage Insurance Companies of America National Association of Realtors Appraisal Institute of Canada

The Appraisal Foundation Boards and Councils Boards Board of Trustees Appraisal Standards Board Appraiser Qualifications Board Councils The Appraisal Foundation Advisory Council (TAFAC) Industry Advisory Council (IAC) Education Council of Appraisal Foundation Sponsors (ECAFS)

Appraisal Standards Board Writes and Interprets the Uniform Standards of Professional Appraisal Practice (USPAP). Publishes Advisory Opinions, Frequently Asked Questions, and monthly Q&A’s. Currently composed of 6 members.

Appraiser Qualifications Board Sets minimum requirements for state certification of real property appraisers. Has developed minimum voluntary criteria for personal property appraisers. Currently composed of 5 members.

Program to Improve USPAP Education Certified USPAP Instructor Requirement Criteria: 7 years of appraisal experience 35 hours of teaching experience within the last five years Successfully complete 2½ day Instructor Certification Course and pass examination Attend 7-hour Instructor Recertification Course and pass examination at least once every two years As of January 1, 2003, all Qualifying Education Courses must be the 15-hour National USPAP Course or its equivalent (as determined by the AQB) and must be taught by an AQB Certified USPAP Instructor and a Certified Residential or Certified General appraiser Note: There are currently over 450 AQB Certified USPAP Instructors

Appraiser Qualifications Board Educational Requirements Current Trainee License = 75 Hours of Qualifying Education Residential License = 90 Hours of Qualifying Education Certified Residential = 120 Hours of Qualifying Education Certified General = 180 Hours of Qualifying Education Effective 1/1/08 Trainee License = 75 Hours of Qualifying Education Residential License = 150 Hours of Qualifying Education Certified Residential = 200 Hours of Qualifying Education. Also must possess Associate degree or 21 semester hours (credits) of college course work in seven (7) topic areas Certified General = 300 Hours of Qualifying Education. Also must possess Bachelors degree or 30 semester hours (credits) of college course work in ten (10) topic areas Note: All categories require completion of the 15-hour National USPAP Course

Appraiser Qualifications Board Required Core Curriculum Trainee License – 75 Hours Basic Appraisal Principles30 hours Basic Appraisal Procedures30 hours The 15-Hour National USPAP Course or its equivalent15 hours Residential License – 150 Hours Basic Appraisal Principles30 hours Basic Appraisal Procedures30 hours The 15-Hour National USPAP Course or its equivalent15 hours Residential Market Analysis and Highest and Best Use15 hours Residential Appraiser Site Valuation and Cost Approach15 hours Residential Sales Comparison and Income Approaches30 hours Residential Report Writing and Case Studies15 hours

Appraiser Qualifications Board Required Core Curriculum Certified Residential – 200 Hours Basic Appraisal Principles30 hours Basic Appraisal Procedures30 hours The 15-Hour National USPAP Course or its equivalent15 hours Residential Market Analysis and Highest and Best Use15 hours Residential Appraiser Site Valuation and Cost Approach15 hours Residential Sales Comparison and Income Approaches30 hours Residential Report Writing and Case Studies15 hours Statistics, Modeling and Finance15 hours Advanced Residential Applications and Case Studies15 hours Appraisal Subject Matter Electives20 hours

Appraiser Qualifications Board Required Core Curriculum Certified General – 300 Hours Basic Appraisal Principles30 hours Basic Appraisal Procedures30 hours The 15-Hour National USPAP Course or its equivalent15 hours General Appraiser Market Analysis and Highest & Best30 hours Use Statistics, Modeling and Finance15 hours General Appraiser Sales Comparison Approach30 hours General Appraiser Site Valuation and Cost Approach30 hours General Appraiser Income Approach60 hours General Appraiser Report Writing and Case Studies30 hours Appraisal Subject Matter Electives30 hours

Appraiser Qualifications Board Guidance for Curriculum Content BASIC APPRAISAL PRINCIPLES 30 HOURS A. Real Property Concepts and Characteristics 1. Basic Real Property Concepts 2. Real Property Characteristics 3. Legal Description B. Legal Consideration 1. Forms of Ownership 2. Public and Private Controls 3. Real Estate Contracts 4. Leases C. Influences on Real Estate Values 1. Governmental 2. Economic 3. Social 4. Environmental, Geographic and Physical D. Types of Value 1. Market Value 2. Other Value Types E. Economic Principles 1. Classical Economic Principles 2. Application and Illustrations of the Economic Principles F. Overview of Real Estate Markets and Analysis 1. Market Fundamentals, Characteristics, and Definitions 2. Supply Side Analysis 3. Demand Analysis 4. Use of Market Analysis G. Ethics and How They Apply in Appraisal Theory and Practice

Thank You!!! Questions?