In this fluid environment, the Appraisal Institute encourages its professionals to remain aware of developments and resources offered by health professionals and public health organizations and to respond accordingly.
Additionally, here is some guidance cultivated by AI Professional Practice staff:
Appraisers should take care not to put themselves in harm’s way while completing their assignments. Appraisers are advised to consult with their medical practitioners if they have concerns about exposure to the virus, and they should decline assignments if they feel their own health would be put at risk. Here is the Centers for Disease Control and Prevention’s current risk assessment.
An important part of any appraisal assignment is analysis of market conditions. The coronavirus threat may be impacting market conditions. However, in most markets it is not yet clear to what extent, if any, market conditions are affected. Related, complicating factors include fluctuations in the stock market and changes in mortgage interest rates.
Market analysis includes observing market reactions. This analysis becomes more complicated when market participants themselves are facing uncertainty.
Appraisal reports should include a discussion of market conditions, and so mention the Coronavirus outbreak and its possible impact. However, it is not appropriate to include a disclaimer or extraordinary assumption that suggests the appraiser is not taking responsibility for analysis of market conditions.
The Appraisal Institute has published Guide Note 10, Appraising in the Aftermath of a Disaster, and Guide Note 12, Analyzing Market Trends. These two Guide Notes, which can be found on the Appraisal Institute’s web site, provide helpful guiding principles.
News & Updates
Learn the latest developments in these important areas:
Appraisal Institute Resources
AI Answers and Videos
15. AI Answers: The Post-pandemic Office Building of the Future (July 29, 2020)
14. AI Answers: COVID-19's Impact on Valuation Practice and Operations (July 22, 2020)
13. AI Answers: Automated Valuation Model Quality Control Standards (July 15, 2020)
12. AI Answers: The Latest Real Estate Economic Developments (July 1, 2020)
11. AI Answers: Discussion with TAF Vice President (June 17, 2020)
10. AI Answers: value sustainability analysis: everything old is new again (June 10, 2020)
9. AI Answers: appraiser legislative and regulatory update (June 3, 2020)
8. AI Answers: policy updates from Fannie Mae (May 27, 2020)
7. AI Answers: impairment accounting issues in real estate (May 20, 2020)
6. AI Answers: initial impacts and expectations for appraisers (May 13, 2020)
5. AI Answers: flexibilities deadline, CFPB guidance, inspection legislation (May 6, 2020)
4. AI Answers: Residential Appraisal Virtual Inspection Apps (April 29, 2020)
3. SBA’s Paycheck Protection Program for Appraisers & Small Businesses (April 23, 2020)
2. AI Answers: Exterior-Only/Desktop Appraisals and State Orders (April 22, 2020)
1. AI Facebook Live: federal agencies’ rule on appraisal deferrals (April 15, 2020)
3. AI Webinar: Valuation Impacts Of COVID-19 (April 17, 2020)
5. AI’s Flexibilities Guide: Permissible Appraisal Requirements – Excel (April 14, 2020)
4. AI’s Flexibilities Guide: Permissible Appraisal Requirements – PDF (April 14, 2020)
3. AI Summary of Coronavirus Emergency Aid Package (March 26, 2020)
Appraiser News Online Articles
7. SBA Promotes Programs, Initiatives to Aid Business Owners (April 8, 2020)
6. AI Asks FHFA to Rethink Non-GSE Appraisal Requirements (April 8, 2020)
5. GSEs, Agencies Issue Coronavirus Guidance for Appraisers (April 1, 2020)
4. GSEs Ease Appraisal, Employment Verification Standards (March 25, 2020)
3. Appraisal Institute Seeks Guidance from Policy Makers (March 18, 2020)
2. AI Issues Coronavirus-related Direction for Appraisers (March 18, 2020)
1. NCREIF, Appraisal Institute Delay Symposium (March 11, 2020)
4. NCREIF Valuation Committee COVID-19 Documents (May 5, 2020)
3. NAIC Q&A on Guidance for Mortgages for Statutory Financial Statements (April 22, 2020)
2. NCREIF Valuation Committee Bulletin: Property Inspections (April 2, 2020)
1. ASC memo: “State Appraisal/AMC Program Guidance” (March 26, 2020)