FAQs
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FAQs |
What are the different types of appraisals?
What do the designations mean?
What are the qualifications to be an appraiser?
What are your rights in the appraisal process?
What is the Appraisal Institute?
Because much private, corporate, and public wealth lies in real estate, the determination of its value is essential to the economic well-being of society. It is the job of the professional appraiser to determine these values by gathering, analyzing, and applying information pertinent to a property.
Unquestionably, the professional opinion
of the appraiser, backed by extensive training and
knowledge, influences the decisions of people
who own, manage, sell, purchase, invest in, and lend money on the security
of real estate. And because the appraiser is trained to be an
impartial third party in the lending process,
this professional serves as a vital "check in the
system," protecting real estate buyers from
overpaying for property as well as lenders from over lending to buyers.
The fundamental role of an appraiser is to provide a professional opinion, usually an estimate of market value, to be used in making real estate decisions. Typically, appraisers are employed by lenders to estimate the value of real estate involved in a loan transaction. Appraisers also provide opinions in litigation cases, tax matters and investment decisions.
What are the different types of appraisals?
Residential Appraisal
Fannie Mae Form 1004 - This is a typical form appraisal used by most first mortgage lenders.
Freddie Mac Form 2055 -- This is a brief, one-page analysis that can be used for an "interior and exterior inspection" or an "exterior inspection from the street".
ERC -- This is a 6-page report that is used by employee relocation companies. It offers more detailed descriptions of the property, neighborhood, economic trends, as well as property listing comparables and sales comparables.
Commercial Appraisal
Restricted Use -- A brief description of the property is included with a brief analysis of the comparables used.
Summary -- Information and analysis is summarized but in more detail than the restricted use report.
Self-Contained -- This is an expansive report of the facts and analysis.
What do the designations mean?
The Appraisal Institute offers interested persons the opportunity to earn a professional designation through their education program.
The MAI membership designation is held by appraisers who are experienced in the valuation and evaluation of commercial, industrial, residential, and other types of properties, and who advise clients on real estate investment decisions.
The SRPA membership designation is held by appraisers who are experienced in the valuation of commercial, industrial, residential, and other types of property.
The SREA membership designation is held by appraisers who are experienced in real estate valuation and analysis and advise clients on real estate investment decisions.
The SRA membership designation is held by appraisers who are experienced in the valuation of single-family homes, townhouses, and residential income properties of up to and including four units.
The RM membership designation is held by appraisers who are experienced in the valuation of single-family dwellings and two-, three-, and four-unit residential properties.
For details on education requirements, visit our site's Education section.
Also more detailed information can be obtained from the Appraisal Institute's national site at: http://www.appraisalinstitute.org/designat.htm
What are the Qualifications to be an Appraiser?
All states require appraisers to be, at a minimum, state licensed or state certified. However, the Appraisal Institute encourages appraisers to go beyond these minimum requirements to earn a professional MAI general designation or SRA residential designation. Appraisal Institute designated members have fulfilled rigorous education and experience requirements and must adhere to strict industry standards and a professional code of ethics.
Members of the Appraisal Institute may hold one or several designations. General appraisal members hold the MAI, SRPA, or SREA designation while residential appraisal members hold the SRA or RM designations. Currently the Appraisal Institute offers only the MAI and SRA designations in their education programs.
What
are your rights in the appraisal process?
Under the Equal Credit Opportunity Act,
your lender must provide you with a copy of the
appraisal report upon your written request.
If you are dissatisfied with any information contained in your appraisal
report, you should contact your lender immediately.
What is the Appraisal Institute?
Headquartered in Chicago, Illinois, the Appraisal Institute and its predecessor organizations have been at the forefront of the real estate appraisal profession for more than 60 years. Appraisal Institute members are identified by their experience and knowledge of real estate valuation, and adhere to a strictly enforced Code of Professional Ethics and Standards of Professional Appraisal Practice. The Appraisal Institute has more than 19,000 members and 112 chapters across the country.
The Appraisal Institute remains faithful to the ideal of high appraisal standards. Its members are encouraged to adhere to these high standards through professional designation programs that recognize knowledge, training, and experience in residential and commercial real estate appraisal.
For more information on the Appraisal Institute,
visit their website at: http://www.appraisalinstitute.org