Earlier this month, the National Association of Realtors (NAR) held its Annual Convention in Anaheim, California. While your friends at Appraisal Insight spent a fair amount of time at Space Mountain and mingling with Mickey and friends we also took in some appraisal action. Credible valuation of real property is a hot topic these days so it should be no surprise that the topic came up in a variety of ways last week. Here’s a quick synopsis of what you missed if you were not there:
Real Property Valuation Committee: Earlier this year, NAR’s Leadership created a Valuation Work Group met via to discuss the creation of a structure that would allow NAR to develop policy on broader valuation issues including appraisals, broker price opinions, automated valuation models, comparative market analyses, and any other models that may be developed in the future. The Work Group presented a proposal to the Leadership Team to reconstitute the Appraisal Committee as a broader-based Real Property Valuation Committee.
The Appraisal Committee will change to the Real Property Valuation Committee starting in 2012. The new Committee will have representation from other NAR Committees including Professional Standards, Federal Housing Policy, Business Issues, and Conventional Finance and Lending. The reconstituted committee will also have representation from RPR and at least 16 seats on will be reserved for licensed or certified appraisers.
Regulatory Issues/RES Forum: The forum, held Saturday morning, focused on how the average real estate agent can best navigate the appraisal process. A panel discussed how to ensure credible valuations on real property and steps agents can take if they believe the value is not credible. The panel included NAR’s Appraisal Committee Chair, Frank Gregoire, Marty Wagar of Midwest Appraisal Management Group, Anna Ruotolo of RPM Mortgage, and was moderated by Mike McHugh of the Empire State Mortgage Bankers Association. You can read more about this topic at the Speaking of Real Estate blog.
Responsible Valuation Principles: The Valuation Work Group also unveiled an early draft of Responsible Valuation Principles for NAR. While we can’t share many details, the Principles will be the foundation for NAR’s policy on valuing real property – from appraisals to broker price opinions to automated valuation models. NAR’s Board of Directors moved the Principles to a work group that will be put together early next year. This Work Group will work out the details of the Principles and recommend them for adoption at a future date.
NAR’s 2011 Appraisal Committee