What Qualifies for Residential Experience Credit for the AI-RRS Designation Path?
The Appraisal Institute Standards of Professional Appraisal Practice require that Designated members, Candidates for Designation and Practicing Affiliates conduct appraisal review assignments in compliance with USPAP Standard 3 or equivalent.* USPAP defines “Appraisal Review” as “[…] the act or process of developing and communicating an opinion about the quality of another appraiser’s work […]”
For an appraiser subject to USPAP*appraisal review work is subject to Standard 3. “Appraisal Review” does not include making factual comments about the report, such as that the appraiser is licensed, the report is signed, that the comparables are located within a mile or that the comparables are less than 6 months old. While the making of factual comments about the report is not “Appraisal Review” subject to Standard 3, other parts of USPAP would still apply, notably the ETHICS RULE and COMPTENCY RULE. If the reviewer is stating an opinion about reasoning, adequacy, reasonable adjustments, credibility, the value conclusion, concurrence of opinions, and so on, the work would be subject to Standard 3.
* The Standards of Professional Appraisal Practice require Designated members, Candidates, and Practicing Affiliates to comply with either USPAP and the Certification Standard of the Appraisal Institute; or IVS, applicable national standards, and the Certification Standard of the Appraisal Institute. If the appraiser is subject to USPAP, Standard 3 applies to their “Appraisal Review” work.
All work for which experience is claimed must have been performed for a business purpose (mock review experience is ineligible).
The Definition of Residential Experience is work relating to residential real estate that is covered by Standards Rules 1 through 6, of the Standards of Professional Appraisal Practice, or experience gained by providing practical solutions to residential real property economics problems as may be further defined by the Admissions and Designation Qualifications Committee (ADQC). The work that is submitted for Experience credit must be the most recent, qualifying work that has been performed within the previous ten years. No more than 2,000 hours of credit may be received for work performed in a twelve (12) month period. Qualifying work includes:
Valuation of real estate: In developing a real property appraisal, the appraiser must identify the problem to be solved and the scope of the work necessary to solve the problem, and correctly employ the appropriate research and analysis necessary to produce a credible appraisal. In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion and conclusion in a manner that is not misleading. (Qualifying work must meet Standards 1 and 2.)
Review of appraisal: In reviewing an appraisal and reporting the results of that review, an appraiser must form an opinion as to the adequacy and appropriateness of the report being reviewed and must clearly disclose the nature of the review process. (Qualifying review appraisal work must meet Standard 3, or equivalent.)
Real Property Appraisal Consulting: In developing a real property appraisal consulting assignment, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete the research and analysis necessary to produce credible results. In reporting the results of a real property appraisal consulting assignment, an appraiser must communicate each analysis, opinion and conclusion in a manner that is not misleading. (Qualifying work submitted must meet Standards 4 and 5.)
Mass appraisal: In developing a mass appraisal, an appraiser must be aware of, understand and correctly employ those generally accepted methods and techniques necessary to produce and communicate credible appraisals. (Qualifying work must meet Standard 6.) See also: Mass Appraisal Experience Guidelines.
Real property economics: Experience gained by providing practical solutions to real property economics problems. The experience must be real estate oriented. There must be a statement of a problem and/or scope-of-work outline. The Candidate must demonstrate data collection and research techniques and provide analysis leading to a conclusion that is provided in a report format. This (problem, analysis, conclusion, reporting) would not be covered by Standard 1-6.
Residential Review Criteria and Resources
This document includes guidelines for submission of experience, experience screening tips for Candidates preparing for a successful interview, mass appraisal guidelines, instructions and application for college instructors, Appraisal Institute Certification Statements (required), etc.
Common Errors & Issues
Learn how to avoid common errors
Review Experience FAQs
Common questions regarding the review experience requirement process.
Note: Filling in your experience log on a regular basis (e.g. weekly or monthly) will ensure that your experience details are captured efficiently and accurately.
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