The Appraisal Institute, the nation’s largest professional association of real estate appraisers, announced three major strategic initiatives that have the potential to fundamentally reshape the global valuation profession. In the organization’s latest video, AI President Richard L. Borges II, MAI, SRA, discusses this announcement, which includes proposed standards of valuation practice that could serve as an alternative where national or other standards are not required; expand delivery of Appraisal Institute education; and create a new certification organization to establish a future generation of cross-disciplinary valuation professionals. These standards could be used when USPAP, IVS or other standards are not required, and when the use of the proposed standards would be appropriate. They would serve as an alternative set of standards that could be used independently, and not as an additional set of required standards. AI’s new standards would not supplant USPAP or other national standards. The Appraisal Institute also will issue a proposed comprehensive revision of its Code of Professional Ethics.
Bill Hardin, Director of the Real Estate Institute at FIU, joins the show via Skype to discuss tips for dealing with a low appraisal situation as well as other issues faced during the appraisal process of a property.
Appraisal Institute Standards of Valuation Practice The Appraisal Institute has a long history as the leader of the valuation profession and as a developer of valuation standards. In 2013, in keeping with its historic role, as well as in recognition of the limitations of many valuation standards currently in existence, the Appraisal Institute Board of Directors directed the development of high quality, straightforward, principle-based standards that could be used where existing standards are not already required or do not apply. The Board believed that such standards should establish a high level of professional practice, engender public trust, enable valuers and the public to better understand the valuation standards and facilitate the growth and advancement of the valuation profession. The Board also concluded that such standards could help valuers better meet the evolving needs of clients and facilitate the variety of work that clients desire and that valuers now perform. The Appraisal Institute Board of Directors has adopted a final version of the Appraisal Institute Standards of Valuation Practice (SVP). The SVP will become effective on January 1, 2015.
- Standard A establishes requirements for the development of an appraisal.
- Standard B establishes requirements for the development of a review.
- Standard C establishes requirements for the reporting of an appraisal or review.
Source: Standards of Professional Appraisal Practice – Ethics and Standards | Appraisal Institute
What is USPAP? The Uniform Standards of Professional Appraisal Practice (USPAP) are the generally accepted standards for professional appraisal practice in North America. USPAP contains standards for all types of appraisal services, including: real estate, personal property, business and mass appraisal. The Financial Institutions Reform, Recovery and Enforcement Act of 1989 recognizes USPAP as the generally accepted appraisal standards and requires USPAP compliance for appraisers in federal-related transactions. As there is no national license for personal property appraisers, USPAP compliancy is an important credential, and one that the IRS uses to measure appraisals as acceptable for tax purposes. The IRS is much less likely to question appraisals completed by USPAP compliant appraisers. See Pension Protection Act. Click HERE to read more. History of USPAP Established in 1987 and based in Washington DC, The Appraisal Foundation is a non-profit educational organization with a mission to foster professionalism in valuation through the establishment and promotion of professional appraisal standards and appraiser qualifications. The work of the Foundation is important to all disciplines of the appraisal profession as well as to the consumer public. The work of the Foundation benefits the appraisal profession by functioning to increase the quality of appraisals and by addressing issues critical to the advancement professional valuation. Users of appraisal services and consumers can feel confident that the Foundation is working to serve their needs and help protect their financial well-being. The Foundation accomplishes its mission through the work of three independent boards: the Appraiser Qualifications Board (AQB), the Appraisal Standards Board (ASB), and the Appraisal Practice Board (APB). The AQB establishes the minimum education, experience and examination criteria for appraisers; the ASB promulgates the generally accepted standards of the valuation profession; and the APB identifies and issues opinions on Recognized Valuation Methods and Techniques. Since its inception, the Foundation has worked to foster professionalism in appraising by establishing, improving, and promoting the Uniform Standards of Professional Appraisal Practice (USPAP). Click HERE to read more. Affiliation with the Appraisal Foundation The Appraisers Association is a sponsor of the Appraisal Foundation. To maintain our sponsorship, we must ensure that all of our members meet the standards set forth by the Foundation. Our affiliation also provides us the right to reproduce USPAP. Click HERE to read more.
Source: Appraisers Association of America | About
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