As a real estate appraiser, how do you know if you can credibly perform appraisal reviews? USPAP provides the review appraiser with plenty of flexibility grounded in ethics and competence. Competence comes with knowledge and experience, but it also requires you to possess specific skills, technology, and abilities. To better understand if you’re prepared to review appraisals, we’re sharing the six key competencies you’ll need.
1. Credentials to perform appraisal reviews
Check your state for the credentials required to perform reviews and any other review-specific requirements. In Texas, for example, the review appraiser must have the same license or certification level or higher as that of the WUR’s appraiser.
2. Competence for this assignment
Each property is unique, and so is each review assignment. When you’re offered an assignment, weigh your competence against the task to ensure you can perform the appraisal review properly. Per the USPAP Competency Rule, “an appraiser must determine, prior to agreeing to perform an assignment, that he or she can perform the assignment competently.”
Even if you were competent for an assignment yesterday, you may need to acquire more knowledge or obtain access to data to remain so for a new assignment, because it is a different market or a different property type.
Moreover, competency requires proper performance. Hence, you must determine the amount of time available and required to complete the appraisal review assignment competently.
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3. Knowledge and experience
The comment to USPAP Standards Rule 3-1 (a) urges review appraisers to improve their skills to remain proficient in appraisal review at all times:
“Changes and developments in economics, finance, law, technology, and society can have a substantial impact on the appraisal profession. To keep abreast…