CHICAGO (May 18, 2023) – The Appraisal Institute announced today that the Appraiser Qualifications Board has provided approval of AI’s Practical Applications of Real Estate Appraisal program for the licensed residential path.
The Appraisal Foundation’s Board of Trustees awarded the Pathway to Success Grant to the Appraisal Institute to assist with the development of the PAREA program. 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.
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. 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 Appraisal Institute Designated Members and full-time employees of the organization. The Appraisal Institute 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 that appraisers use every day including forms software and a multiple listing service (MLS).
“The AQB’s approval of AI PAREA for the licensed residential path is a significant milestone for our organization and the entire valuation profession,” said Appraisal Institute President Craig Steinley, MAI, SRA, AI-GRS, AI-RRS. “This program will create many opportunities for aspiring appraisers who might not currently have a pathway into the profession.”
“The Foundation is so pleased to see the first PAREA program receive approval from the Appraiser Qualifications Board,” said The Appraisal Foundation President David S. Bunton. “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.”
View a clip of AI PAREA.
AI PAREA will initially welcome select participants during the pilot program phase, who have completed their Qualifying Education and reside in a state which has fully accepted PAREA in lieu of the traditional supervisor/trainee model. AI PAREA is expected to launch broadly and make registration available by September 2023.
Learn more about AI PAREA.