Real estate is one of the basic sources of wealth in the global economy. Therefore, homeowners, business entities, governments, individuals, and others who own, manage, sell, purchase, invest in, or lend money on the security of real estate must have ready access to the services of Appraisal Institute Members, Candidates and Practicing Affiliates who provide unbiased opinions of value, as well as sound information, analyses, and advice on a wide range of real estate–related issues. The services of Appraisal Institute Members, Candidates, Practicing Affiliates and Affilites are vital to the well being of our society and the global economy, and foster economic growth, stability, and public confidence.
Because of this vital role and the commitment of Appraisal Institute Members, Candidates, Practicing Affiliates, and Affiliates to professionalism, the Appraisal Institute has adopted its Code of Professional Ethics and Standards of Professional Appraisal Practice to establish requirements for ethical and competent practice. These requirements also serve to promote and maintain a high level of public trust and confidence in Appraisal Institute Members.
Every Appraisal Institute Member, Candidate, Practicing Affiliate and Affiliate agrees to conduct his or her professional activities in accordance with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. In addition, the Appraisal Institute has developed a sophisticated peer review system through which it enforces its Code of Professional Ethics and Standards of Professional Appraisal Practice. Violations of the Code of Ethics or Standards can result in remedial or disciplinary actions.
Proposed Standards of Valuation Practice
In keeping with the Appraisal Institute’s historic role as the leader of the valuation profession and in
establishing valuation standards, as well as in recognition of the limitations of many valuation standards in existence today, the Appraisal Institute Board of Directors last year directed that the PSGC develop
proposed SVP. The Board recognized that valuers would benefit from high quality, straightforward,
principle-based standards 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 distributed initial Exposure Drafts of the proposed Standards of Valuation Practice as well as proposed revisions to the Code of Professional Ethics on December 6, 2013, and comments could be submitted until January 12, 2014. The Appraisal Institute Professional Standards and Guidance Committee (PSGC) subsequently reviewed and considered the comments received for the initial Exposure Drafts and worked on potential improvements and clarifications. Second Exposure Drafts of these documents have been released for comment.
View the Second Exposure Drafts of Proposed Standards of Valuation Practice and Proposed Revisions to the Code of Professional Ethics