Definition
Appraisal Foundation: An organization founded in the late 1980s to encourage the development of uniform requirements for appraiser qualifications and appraisal reporting standards. The Appraisal Foundation operates under a Board of Trustees and oversees three independent boards: the Appraisal Practices Board, the Appraisal Standards Board, and the Appraiser Qualifications Board.
Examples
- Residential Property Appraisals: A residential appraiser uses standards set by the Appraisal Foundation to evaluate single-family homes, applying consistent methods and ethical guidelines.
- Commercial Real Estate Appraisals: Commercial appraisers adhering to the Uniform Standards of Professional Appraisal Practice (USPAP), set by the Appraisal Standards Board, evaluate office buildings, shopping centers, and industrial properties.
- Training and Certification: An aspiring appraiser undertakes coursework and exams as mandated by the Appraiser Qualifications Board to become licensed.
Frequently Asked Questions (FAQs)
What is the primary purpose of the Appraisal Foundation?
The primary purpose of the Appraisal Foundation is to develop and maintain uniform standards for appraisers, ensuring consistency, quality, and legal defensibility in real estate appraisal practices.
How does the Appraisal Foundation influence real estate appraisals?
It influences through its boards, establishing guidelines and qualifications necessary for conducting appraisals, ensuring that appraisers maintain high levels of competency and professionalism.
Who governs the Appraisal Foundation?
The Appraisal Foundation is governed by a Board of Trustees, which oversees its administration and strategic direction and appoints members to the three independent boards.
What are the key independent boards under the Appraisal Foundation?
The three independent boards are:
- Appraisal Practices Board (APB): Provides guidance on recognized appraisal methods and techniques.
- Appraisal Standards Board (ASB): Establishes the United States Uniform Standards of Professional Appraisal Practice (USPAP).
- Appraiser Qualifications Board (AQB): Sets the minimum qualifications required to become a licensed or certified appraiser.
Are the standards set by the Appraisal Foundation legally binding?
While the Appraisal Foundation’s standards are highly influential and widely adopted, their legal binding nature depends on state laws and regulations that incorporate these standards.
Related Terms
Uniform Standards of Professional Appraisal Practice (USPAP)
Document that sets the guidelines for appraisal standards, ethics, and procedures, established by the Appraisal Standards Board of the Appraisal Foundation.
Appraisal Practices Board (APB)
A board within the Appraisal Foundation that provides guidance on recognized appraisal methods and techniques.
Appraisal Standards Board (ASB)
A board that establishes the Uniform Standards of Professional Appraisal Practice (USPAP), ensuring a cohesive approach to appraisal standards across the industry.
Appraiser Qualifications Board (AQB)
A board that sets the minimum qualifications necessary for appraisers, including education, experience, and examination requirements.
Online Resources
- Appraisal Foundation Official Website
- USPAP Standards
- AQB Real Property Appraiser Qualification Criteria
References
- Appraisal Foundation. “About Us.” The Appraisal Foundation, www.appraisalfoundation.org.
- USPAP. “Uniform Standards of Professional Appraisal Practice.” www.uspap.org.
Suggested Books for Further Studies
- “The Appraisal of Real Estate” by Marcy Elizabeth Gerow and Appraisal Institute: Comprehensive resource on real estate appraisal methods.
- “Real Estate Appraisal: From Value to Worth” by Robert T. Greenfield: Detailed exploration of appraisal practices and procedures.
- “Standards of Valuation Practice Handbook” by the Appraisal Institute: Guidebook on incorporating contemporary standards into practical appraisal work.
