National Association of Real Estate Appraisers (NAREA)

National Association of Real Estate Appraisers (NAREA)

Definition

The National Association of Real Estate Appraisers (NAREA) is a professional organization founded in 1966. The association aims to make certified estate appraisers accessible to individuals and entities requiring professional appraisal reports. NAREA offers multiple membership classes and designations, ensuring that appraisers are well-qualified and adhere to industry standards.

Membership Classes and Designations

1. CREA (Certified Real Estate Appraiser): Focuses on residential property appraisals and signifies proficiency in evaluating homes, townhouses, and condominium units.
2. CCRA (Certified Commercial Real Estate Appraiser): Concentrates on commercial property appraisals, recognizing expertise in evaluating office buildings, retail stores, industrial properties, and multi-family housing complexes.
3. RPM (Registered Professional Member): Denotes a general membership level for professional appraisers who meet the qualifications and standards set by NAREA.

Examples

• A residential property sale where a bank requires a certified appraisal report to approve a mortgage loan. A Certified Real Estate Appraiser (CREA) would be consulted to provide a detailed and accredited appraisal.
• A commercial real estate investor seeking to purchase a shopping mall hires a Certified Commercial Real Estate Appraiser (CCRA) to evaluate the market value, potential income, and investment risk.
• A Registered Professional Member (RPM) providing appraisal services for a local government assessing properties for tax purposes.

Frequently Asked Questions

What is the difference between CREA and CCRA designations?

• CREA (Certified Real Estate Appraiser) focuses on residential properties, while CCRA (Certified Commercial Real Estate Appraiser) is geared towards commercial properties. The competencies and course requirements for each designation reflect these different scopes.

How can one become a member of NAREA?

• To become a member, applicants must meet the educational and experience requirements set by NAREA, pass the relevant certification exams, and adhere to the ethical standards of the organization. Additional details can be found on NAREA’s official website.

What are the benefits of hiring an NAREA appraiser?

• NAREA appraisers have undergone rigorous training and certification processes, ensuring that their appraisal reports are accurate, objective, and compliant with industry standards and regulations.

Related Terms

• Real Estate Appraisal: The process of developing an opinion of value for real estate, typically required for lending purposes, investment analysis, or property taxation.
• Uniform Standards of Professional Appraisal Practice (USPAP): The generally accepted standards for professional appraisal practice in North America.
• Market Value: The estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller.
• Comparable Sales (Comps): Recent sales of similar properties used to help determine the market value of a subject property.

Online Resources

• NAREA Official Website
• Appraisal Foundation
• American Society of Appraisers
• Uniform Standards of Professional Appraisal Practice (USPAP)

References

• “Principles of Appraisal” by Henry S. Harrison
• “Appraising Residential Properties” by the Appraisal Institute
• “The Appraisal of Real Estate” by the Appraisal Institute

Suggested Books for Further Studies

• “Real Estate Appraisal: From Value to Worth” by Leslie P. Chandler: This book provides a comprehensive understanding of the appraisal process and methods used in real estate valuation.
• “Fundamentals of Real Estate Appraisal” by William L. Ventolo and Martha R. Williams: A foundational text covering essential appraisal concepts and techniques.
• “The Valuation of Real Estate” by Peter Wyatt: This book offers insights into the newest methodologies and standards in property valuation, suitable for both students and professionals.

Real Estate Basics: National Association of Real Estate Appraisers (NAREA) Fundamentals Quiz

Now with this complete summary and reference material, you will be well-prepared to understand and utilize the services of the National Association of Real Estate Appraisers (NAREA) effectively.