1. Fundamentals of Real Estate Appraisal Thirteenth Edition
William L. Ventolo Jr.
Martha R. Williams, JD
Sam Martin, PhD, DREI, Consulting Editor

2. 1 The Appraisal Profession
Real estate appraiser provides opinion of value of an interest in real property (land and/or buildings) Scope of work determines extent of research and analysis required Opinion of value usually presented in written appraisal report

3. Appraisal Assignments Available
Set/determine fairness of asking price
Estate valuation
Value in trade
Business property valuation in merger, acquisition, liquidation, or bankruptcy
Mortgage loan value

4. Appraisal Assignments (cont.)
Insurance value
Damages from construction defects
Loss from natural disaster
Property, gift, or inheritance tax
Marital dissolution
Arbitration
Most profitable use
Condemnation

5. Employment Opportunities
Sole practitioner
With/without support staff
May serve as independent contractor with appraisal management company (AMC)
Staff appraiser
Appraisal company
Business that acquires land/buildings
Government agency
Compensation based on time/expertise required and competition for appraisal services

6. Licensing and Certification
FIRREA—Financial Institutions Reform, Recovery, and Enforcement Act of 1989
Defined type and monetary value of transactions that would require state-licensed or certified appraiser
Licensing/certification required for those transactions in all states as of January 1, 1993

7. Appraisal Foundation Non-profit corporation established in 1987
Appraiser Qualifications Board sets minimum qualifications for appraiser licensing and certification Appraisal Standards Board defines appraisal terms and sets minimum requirements for appraisal reports Appraisal Practices Board issues guidance on emerging valuation issues in the marketplace

8. Appraiser’s Qualifications
Education includes:
Basic Appraisal Principles
Basic Appraisal Procedures
National USPAP course or equivalent
Residential Market Analysis and Highest and Best Use; Residential Site Valuation and Cost Approach; Residential Sales Comparison and Income Approaches; Residential Report Writing and Case Studies
Advanced appraisal courses
Required hours of experience
For certification, college credit hours or degree
Education can also include:
Accounting, Economics, City Planning, Statistics, Technology,
Geography, Construction

9. Appraiser’s Qualifications
Experience is gained by:
State-licensed trainee position
Training program in government agency or financial institution

10. Other Federal and State Regulations
Fair housing laws
Environmental concerns
Subprime lending crisis
Housing and Economic Recovery Act of (HERA)
Federal Housing Finance Agency (FHFA)
Appraiser Independence Requirements
from Fannie Mae
Dodd-Frank Wall Street Reform and Consumer Protection Act changes to Truth in Lending Act

11. Appraiser Independence Requirements
Prohibits acts or practices that impair, or attempt to impair, an appraiser’s independence, objectivity, or impartiality, or which violate a law or regulation, including Truth in Lending Act (and Regulation Z) and Uniform Standards of Professional Appraisal Practice (USPAP)
Effective October 15, 2010, for all appraisals in transactions involving Fannie Mae

12. Uniform Standards of Professional Appraisal Practice (USPAP)
Published by the Appraisal Standards Board of the Appraisal Foundation Ongoing review and modification on a two-year cycle with revisions published in even-numbered years

13. Trade Associations Appraisal Institute awards MAI and SRA designations
International Association of Assessing Officers
International Right of Way Association
National Association of Independent Fee Appraisers, Inc.
Other specialized or regional associations

14. Modern Appraisal Office
Requires knowledge of:
Equipment, including computer, tablet, mobile phone, camera, printer, measuring device
Appraiser-specific software that meets requirements of lender, Fannie Mae, and other clients
Internet access for research and communication