Commercial Real Estate Training from the Appraisal Institute: Appraisal Engagement, Appraisal Reviews & Evaluations
Engage and challenge your staff by attending the Appraisal Institute’s training program specifically designed for lending, credit, or risk management staff who handle appraisal engagement, review, and evaluation. This program, developed by a former chief appraiser with 35+ years of commercial real estate experience, will provide insight on 1) what regulators expect from banks, 2) the internal bank policy and process, 3) the appraisal process, and 4) the scope of work. The four-part training sessions can be taken together or separately.
Engaging Appraisers: Compliance with the Regulations
Covers federal appraisal regulations and federal banking regulations governing single-unit (family) residential and commercial real estate. Learn about USPAP and its three rules for appraisers—Ethics Rule, Competency Rule, and Scope of Work Rule. Learn how to properly select an appraiser, minimum appraisal standards, and review requirements. Learn how to order an appraisal, monitor a vendor panel, which documents banks need to provide to the appraiser and much more!
Part B
Sales Comparison Approach — A Case Study
Covers use of sales comparison approach in completing an appraisal review or an evaluation of a land parcel. Introduces approach and discusses its usefulness for different types of properties. Scope of work issues are also introduced, including the number of sales required, client requirements, level of data confirmation, level of inspection, and level of comparison and analysis. Case study also discusses steps of the review process and uses the Engagement Proposal / Reviewer’s Checklist.
Part C
Income Approach — A Case Study
Discuss the income approach and types of properties for which income approach is used. Scope of work issues are discussed in relation to the appraisal, evaluation, and appraisal review. Case Study demonstrates how to estimate income from all sources, adjust for market vacancy and collection loss, deduct expenses, and use direct capitalization. As a reviewer, recognize the focus vis-a-vis: whether the report's quality and quantity of data is appropriate and whether the value conclusion is credible.
Part D
Single Family Residential — Understanding the URAR Report
Learn how appraisers document their opinion of market value using the sales comparison approach, how they select comparable sales, and rationale/procedures for making adjustments. Identify the steps needed to complete a real estate appraisal, identify all elements recorded on a URAR report, and understand the impact of rules on appraiser independence.
Who Should Enroll
AI CE Points
Course Offerings
Course Objectives
Part A: Engaging Appraisers: Compliance with the Regulations
Covers federal appraisal regulations and federal banking regulations governing single-unit (family) residential and commercial real estate. Learn about USPAP and its three rules for appraisers—the Ethics Rule, Competency Rule, and Scope of Work Rule. Learn how to properly select an appraiser, minimum appraisal standards, and review requirements. Learn how to order an appraisal, monitor a vendor panel, and which documents your institutions need to provide to the appraiser, and much more!
Part B: Sales Comparison Approach—A Case Study
Covers use of the Sales Comparison Approach in completing an appraisal review or an evaluation of a land parcel. Introduces approach and discusses its usefulness for different types of properties. Scope of work issues are also introduced, including the number of sales required, client requirements, level of data confirmation, level of inspection, and level of comparison and analysis. Case study also discusses steps of the review process and uses the Engagement Proposal/Reviewer's Checklist.
Part C: Income Approach —A Case Study
Discuss the income approach and types of properties for which this approach is used. Scope of work issues are addressed in relation to the appraisal, evaluation, and appraisal review. Case study demonstrates how to estimate income from all sources, adjust for market vacancy and collection loss, deduct expenses, and use direct capitalization. As a reviewer, recognize whether the report is appropriate and if the value conclusion is credible.
Part D: Single-Family Residential—Understanding the URAR Report
Learn how appraisers document their opinion of market value using the sales comparison approach, how they select comparable sales, and rationale/procedures for making adjustments. Identify the steps needed to complete a real estate appraisal, identify all elements recorded on a URAR report, and understand the impact of rules on appraiser independence.