- Don’t restrict the appraiser from making an appointment to inspect the property (if your MLS uses an appointment system, use it. You will be notified of the appraiser’s site inspection).
- If an appraiser calls, be responsive and provide as much information as needed. Return the call promptly even if your listing has closed. (Brokers are the expert source of information on your listing.)
- Be as descriptive in MLS as possible about your listing and include as many photos as your MLS system will allow (include photos of: Front, Rear, Street, and ALL major rooms & property features).
- Don’t use or reference tax records as your source of information. Do the proper legwork on your listing; it builds significant long-term credibility among your peers and local appraisers.
- Distinguish “above-grade” living area from “below-grade” living area in your MLS, particularly the quality of finish in below-grade living area, attics, bonus rooms, decks, porches, and so on.
- Provide an “Appraisers Package” in advance, and have it available at the property when the appraiser is inspecting the property, or meet the appraiser at the property so that you can answer any questions or inform the appraiser of the unique features of the property or neighborhood. Make sure you allow the appraiser the space and time to complete their inspection (Appraisers Package could include plats, surveys, deeds, covenants, HOA documents, floor plans, specifications, inspection reports, neighborhood details, recent similar-quality comparables, detailed list and dates of upgrades and remodels, and energy-efficient green features).
- Provide a fully executed copy of the purchase contract, with all addenda.
- Explain, to the seller or buyer that the roll of the appraiser is not to confirm the sales price but to provide the lender an independent, objective and impartial opinion of the value of the underlying collateral which the loan would be based on. Provide the seller or the Buyer a copy of the brochure developed by The Appraisal Foundation entitled “A Guide to Understanding a Residential Appraisal,” available from NAR to view or download at www.realtor.org/appraisal/a-guide-to-understanding-a-residential-appraisal.
- Real estate salespeople and consumers can be present during the appraisal inspection. Make sure all parties allow the appraiser the space and time to complete their appraisal inspection, uninterrupted.
- Make sure the property condition (inside and outside) is the best possible for the appraisal inspection, and inform the seller that interior and exterior photos (and measurements) must be taken by the appraiser.
The Appraisal Foundation Press Release on the Alliance for Valuation Education:
April 26, 2013
Contact:
Paula Douglas Seidel
Executive Administrator
The Appraisal Foundation
direct phone 202.624.3048
Washington, DC — The Appraisal Foundation (TAF) and its Sponsoring Organizations have formed a national education partnership, the Alliance for Valuation Education (AVE), an organization dedicated to providing greater availability of consistent, quality valuation education. The AVE will be composed of TAF and 11 of its Sponsoring Organizations (Alliance Sponsors).
“Having these organizations work in collaboration with one another has been an evolutionary process based on their input and recommendations. It just makes sense,” stated Steven Elliott, Chair of TAF’s Board of Trustees. “This is an important and long overdue first step in combining our resources for the benefit of the entire valuation profession,” he added. Elliott went on to say, “A common complaint heard from states over recent years is the lack of available quality educational offerings. It is our hope that the Alliance will reduce an education provider’s cost to develop certain courses, thereby allowing them to focus more on delivering courses in underserved areas.”
The AVE is the result of the work of the National Education Partnership Task Force, which was appointed by TAF’s Board of Trustees in May 2012. The Task Force included representatives from several of TAF’s Sponsoring Organizations as well as the Association of Appraiser Regulatory Officials.
The AVE will be:
- established as a new 501(c)3 not-for -profit organization, separate from TAF and its Sponsoring Organizations. The Appraisal Foundation’s Congressionally authorized Boards, the Appraisal Standards Board and the Appraiser Qualifications Board, will not be involved in the governance or operation of the AVE.
- governed by a seven member Board of Regents appointed by the Alliance Sponsors and TAF. One of the Regent positions will be an elected at-large seat, open to the general public.
- composed of TAF and Sponsoring Organizations of TAF in good standing who elect to become a Sponsor of the Alliance. The Appraisal Foundation Sponsors may elect to not join the AVE.
- a developer of educational materials, but not a presenter of the education. The AVE will be a wholesaler rather than a retailer, using a model similar to what TAF currently utilizes with the National USPAP Courses.
- providing the education materials to all educational providers.
The initial focus will be real property continuing education, with topics possibly drawn from Valuation Advisories issued by the Appraisal Practices Board. The education developed by the AVE will be voluntary; any educational provider will be able to continue to develop similar education and appraisers would not be required to take AVE education.
In the future, the AVE may give consideration to developing other valuation discipline education, including both personal property and business valuation, basic qualifying education for real property appraisers (e.g.Basic Appraisal Principles and Basic Appraisal Procedures) and remedial real property education.
The appointed members of the Board of Regents will be selected by the Alliance Sponsors and the TAF Board of Trustees at their upcoming meetings in May in Savannah, Georgia. The organizational meeting of the AVE Board of Regents will occur this summer and it is anticipated that the first AVE course could be available in the first quarter of 2014.
The Board of Trustees of TAF would like to recognize the members of the National Education Partnership Task Force for their excellent work, dedication to the profession and vision:
National Education Partnership Task Force
- David Layne, Chair
- Charles Blau, National Association of Independent Fee Appraisers
- Don Dorchester, Royal Institution of Chartered Surveyors
- Mike Evans, Board of Trustees, The Appraisal Foundation
- Mark Grace, American Society of Farm Managers and Rural Appraisers
- Heidi Henning, National Association of Realtors
- Don Rodgers, Association of Appraiser Regulatory Officials
- Magdalene Vasquez, Staff Member, The Appraisal Foundation
- Alice Ritter, Appraisal Subcommittee (non-voting observer)
- Ted Freeman, Appraiser Qualifications Board (non-voting observer)
The Hotline is an information resource to help complainants determine the appropriate legal authority to receive their complaint involving allegations of non-compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) or appraisal independence requirements.
How it works:
You may contact the Hotline through the website, email, or call center. The Hotline provides referral information to complainants based on responses to a series of questions and drop-down menu selections. The complainant is provided with agency contact information for filing of a complaint. The website also offers tools and resources to enable complainants to determine the nature of their complaint, as well as other helpful information. If you seek to file a complaint against more than one party, proceed with a separate referral request for each party.
Access the Hotline at:
http://refermyappraisalcomplaint.asc.gov/
Toll free number: 877-739-0096
From the Appraisal Foundation:
The Appraisal Foundation is conducting its annual search for qualified candidates to serve on the Appraisal Practices Board and the Board of Trustees. The deadline for completed applications is fast approaching on April 2, 2013.
Details for each are outlined below. Please note, however, that an individual may submit an application for the Appraisal Practices Board or the Board of Trustees, but not both boards at this time.
Appraisal Practices Board
There are four vacancies on the Appraisal Practices Board (APB). The APB is charged with the responsibility of issuing voluntary guidance on recognized valuation methods and techniques, which may apply to all disciplines within the appraisal profession. The APB meets periodically through WebEx meetings and conference calls. In addition to these calls, there may be one to two in-person meetings each year. Individuals serving on the board are compensated for their time and reimbursed for travel expenses. Those selected for APB positions will serve a one-, two-, or three-year term commencing on July 1, 2013.
Board of Trustees
The Board of Trustees of The Appraisal Foundation is charged with funding the work of and appointing members to the APB, AQB and ASB, as well as providing oversight of these three Boards. The Board of Trustees meets twice a year, in the spring and fall. Trustees are reimbursed for travel expenses and are not compensated for their time. The individuals selected for positions on the Board of Trustees will serve three-year terms commencing January 1, 2014.
Application packages and additional details for the At-Large Trustee vacancies are available here.
Questions? Please contact Arika Cole, councils administrator, at arika@appraisalfoundation.org.
In 2011 the Appraisal Institute released one work-around to address three major sticking points that have made it difficult to appraise high-performance or “green” homes.
The first problem has been that the most important features of these homes are often invisible during a typical appraisal — either packed into the attic or programmed into appliances and other systems. The second problem has been that the standard Form 1004 includes one small box for “energy efficiency features” which is far too small to capture any important points about either the subject property or the comparables. Finally, while the appraisal industry has been providing a growing number of courses and certifications for appraisers working with high-performance homes, there has been no simple way to match these competent appraisers to assignments for high-performance homes.
That all changed 18 months ago when the Appraisal Institute introduced the Residential Green & Energy Efficiency Addendum. Things got better once again with their release of v 2.0 of the Addendum last week.
The first version of the tool has been extremely well-received; it has worked magic to simplify how information is presented to or gathered by an appraiser, serving as a means to verify opinions of value for High Performance Homes and helping to identify competency requirements. Version 2.0 is very consistent with the first release, simply clarifying some field names and some organization tweaks that make it easier to use. Perhaps the biggest change for the appraiser is that it spells out an answer to the question: Who should complete this addendum?
The answer is clearly this: whoever has the most first-hand knowledge with the performance and features of this home. Continue reading »
The next public meeting of the Appraisal Practices Board (APB) is approaching. Please take the time to register for this meeting if you plan to attend.
Date/Time:
Friday, April 26, 2013
9:00 a.m. – 12:00 p.m.
Location:
The Sheraton Austin at the Capitol
701 East 11th Street
Austin, TX 78701
Meeting Agenda:
The purpose of the APB is to issue voluntary guidance on recognized valuation methods and techniques in the marketplace. This guidance is designed to be of assistance to appraisers, appraiser regulators and educators.
The following topics are on the Board’s meeting agenda:
• Identifying Comparable Properties
• Appraising Green Buildings – Background Competence
• VFR WG 2: The Valuation of Customer-Related Assets
• VFR WG 3: Control Premiums for Financial Reporting
• VFR WG 4: Contingent Consideration
Lodging Accommodations:
You may make a reservation with The Sheraton Austin at the Capitol, 701 East 11th Street, Austin, TX 78701 by contacting them directly at (512) 478-1111. Please note that The Appraisal Foundation no longer reserves “room blocks” for meeting attendees. Therefore, meeting attendees are responsible for making their own lodging arrangements at the best available rates.
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Please Note:
SRAG Meeting: As announced separately, following the APB public meeting, the State Regulator Advisory Group (SRAG) meeting will be held on Friday, April 26, 2013, at the Sheraton Austin Hotel at the Capitol from 1:00 p.m. to 5:00 p.m.
Note to State Appraiser Regulators: The Association of Appraiser Regulatory Officials (AARO) Spring Conference will also be held April 27-29, 2013, at a different venue. The AARO conference will be held at the Austin Omni Hotel located at 700 San Jacinto at 8th Street, Austin, TX 78701.
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Your online registration will assure proper seating at the meeting.
Practices Administrator: Staci Steward, 202-624-3052, staci@appraisalfoundation.org
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We are fairly near the end of the continuing education cycle for appraisers in my home state of Pennsylvania. Among other topics, I’ve been presenting changes to laws and regulations, which include the new Appraisal Qualifications Board (AQB) standards that go into effect in January 2015. You can find the regulations here: http://www.appraisalfoundation.org/
The overwhelming response from existing appraisers is: “Do they just want to make us go away?”
The new requirements will include a bachelor’s degree, as well as — in most states — 2,000 hours of experience under a state-certified appraiser (the number of hours varies, but the requirement to gain experience under a state-certified appraiser is found in all states), plus another 75 hours of specific appraisal classes, including the 15-hour basic Uniform Standards of Professional Appraisal Practice (USPAP) course.
In the world of residential valuation, a green-built, energy-efficient, or high-performance new home or retrofit is essentially invisible to the consumer if the MLS doesn’t support green fields (i.e., fields in the MLS data form that enable the listing agent to define the green features). Without green fields, if a potential buyer is interested in a home that’s resource efficient or has superior indoor air quality, for example, brokers searching the MLS on their behalf can’t identify this property type. Likewise, an appraiser undertaking a green home assignment isn’t able to identify comparables, isolate possible premiums being paid by consumers for green features, or identify local market information such as market share, days on market, and price per square foot.
As market awareness of and demand for green homes grows, what is an MLS’s responsibility to its members to provide green fields—and what liability issues should be of concern? According to studies by the Institute for Market Transformation, a nonprofit organization that promotes energy efficiency, energy benchmarking of commercial properties has revealed a simple truth: When information is disclosed to the market, the market has the opportunity to react to that information. Market reaction can be reward or punishment—that’s the nature of a free market. But either way the consumer benefits from the competition as a result of disclosure. The ability then to identify market reaction lies at the heart of both real estate investments and valuation.
Washington, DC–The Appraisal Foundation has begun its annual search for qualified candidates to serve on the Appraisal Practices Board (APB). Completed applications for these vacancies must be received by April 2, 2013.
There are four vacancies on the APB. The Appraisal Foundation is always interested in expanding the diversity of its boards by considering applications from appraisers involved in various appraisal disciplines such as real property, business valuation or personal property.
Background and Qualifications:
The APB is charged with the responsibility of issuing voluntary guidance on recognized valuation methods and techniques, which may apply to all disciplines within the appraisal profession.
The APB guidance, known as a Valuation Advisory, focuses on topic areas which appraisers and users of appraisal services feel are the most pressing. The Board utilizes panels of Subject Matter Experts (SMEs), who are widely recognized individuals with expertise in the specific topic being considered, to research and detail all pertinent sources of existing information on the given topic.
Examples of qualifications that the Boards Nominating Committee will seek in candidates include the following:
• A minimum of ten years of appraisal experience
• A working knowledge of the Uniform Standards of Professional Appraisal Practice (USPAP)
• Familiarity with valuation methodology and techniques
• Experience in writing on valuation topics and/or curriculum development
• Experience with public speaking and/or teaching on valuation topics
• Experience in serving on a publically accountable board.
The APB meets periodically through WebEx meetings and conference calls. In addition to these calls, there may be one to two in-person meetings each year. Individuals serving on the board are compensated for their time and reimbursed for travel expenses. Those selected for APB positions will serve a one-, two-, or three- year term commencing on July 1, 2013.
Applications for the positions outlined above are now available on-line at The Appraisal Foundation’s website.
If you would like to request an application via email or if you have questions, please feel free to contact Arika Cole (arika@appraisalfoundation.org). When requesting information on the applications via e-mail, please use the phrase “2013 APB APPLICATION REQUEST” in the subject line, and please include your full name, email address and phone number.
For more information on the work of the APB, please click here for a free informational video.
The National Association of REALTORS® (NAR) is looking for NAR members who are appraisal/valuation experts to write regularly for the Appraisal Insight Blog, to increase discussion of appraisal /valuation issues. If you are interested in writing for the blog, please submit one sample of your writing and a brief explanation of what types of topics you’d like to submit for the blog. Email Sarah Young, NAR’s Associate Regulatory Policy Representative, at scyoung@realtor.org if you are interested in contributing or to receive more details.
