On May 18, the Appraisal Institute (AI) announced the Appraiser Qualifications Board (AQB) has provided approval of AI’s Practical Applications of Real Estate Appraisal (PAREA) program for the licensed residential path. The Appraisal Foundation’s (TAF) Board of Trustees awarded the Pathway to Success Grant to the Appraisal Institute to assist with the development of the PAREA program, AI announced in a release on its website.
The Pathway to Success Conditional Grant is designed to open up the appraisal profession to a new generation of appraisers and stipulates that participant priority be given to veterans, minorities and those in designated rural areas. AI was awarded the full grant amount of $500,000 to build its AI PAREA program in collaboration with its partners. AI committed more than $2 million toward AI PAREA.
“The AQB’s approval of AI PAREA for the licensed residential path is a significant milestone for our organization and the entire valuation profession,” AI President Craig Steinley said in the release. “This program will create many opportunities for aspiring appraisers who might not currently have a pathway into the profession.”
PAREA, which is an online program, is an alternative pathway for aspiring appraisers to gain their required experience hours to become a licensed or certified appraiser. Historically, the only option for an appraiser to complete their experience hours was through a supervisor/trainee model that requires the aspiring appraiser to find their own supervisor, AI stated.
PAREA is currently accepted in 43 states, and that number is likely to increase as more states adopt this alternative pathway.
Key elements of AI PAREA include:
- Participants will be supported throughout the program by mentors who are AI Designated Members and full-time employees of the organization. The AI specifies rigorous requirements for Designated membership regarding experience, education and moral character and those individuals demonstrate the highest standards of education and ethics.
- AI PAREA participants will have access to the organization’s 66 chapters to enhance networking opportunities and connect with appraisers who can potentially help participants become geographically competent, meaning that participants can learn about the specifics of local markets from appraisers with that knowledge and experience.
In addition to the basic specification of three Uniform Standards of Professional Appraisal Practice (USPAP)-compliant reports established for PAREA programs by the AQB, AI PAREA features an additional 10 practice assignments and reports. The assignments are consistent for all participants and include a variety of complexity and property types to reinforce important appraisal concepts and skills.
The assignments that are part of AI PAREA are developed by an organization with a 90-plus-year history of creating best-in-class education, publications and other appraisal products.
AI PAREA participants have access to a knowledge center that includes a variety of resources appraisers use every day including forms, software and a multiple listing service (MLS).
TAF President David Bunton expressed his appreciation regarding this announcement.
“The Foundation is so pleased to see the first PAREA program receive approval from the Appraiser Qualifications Board,” Bunton said. “The introduction of this program to the marketplace opens a new pathway for aspiring appraisers, and we look forward to welcoming PAREA participants to the appraisal profession.”