Quick Takeaways on Property Appraisals
- The National Association of REALTORS® encourages independent, credible valuations, recognizing them as an essential component of the real estate industry.
- Over the past few years, there has been a rise in allegations of discriminatory appraisals, which led to the release of the PAVE (Property Appraisal and Valuation Equity) Action Plan by the Biden Administration.
- Another critical issue impacting appraisals is appraiser shortages, which may result from stringent educational requirements and over-regulation. NAR supports exploring ways to bring more appraisal professionals to the field.
NAR Policy on Appraisals
What is a Property Appraisal?
Appraisal and valuation are extremely important steps in any home buying and/or selling transaction. A professional appraiser will use the home inspection and current housing market to provide an appraised value, which is very important to the home loan process. There are different methods to valuing a home, and the value of the home is often not the same as the price or cost.
Property Appraisal and Evaluation Action Plan
In the past few years, much light has been shed on discriminatory appraisals. Unfortunately, there have been numerous appraisals in which a Black homeowner gets a much lower appraisal than when the appraiser thinks the home is owned by a white homeowner. The Biden Administration recently released the PAVE (Property Appraisal and Valuation Equity) Action Plan in order to target this deep-rooted discrimination.
Property Appraisal Resources for REALTORS®
NAR Provides members with a great deal of appraisal resources. REALTORS® can access a variety of appraisal education as well as receive two appraisal related designations, General Accredited Appraiser (GAA) and Residential Accredited Appraiser (RAA). We also highly recommend the use of RPR, The REALTORS® Property Resource®.
The agent/appraiser relationship is an important one, and NAR has multiple resources for REALTORS® to improve communication between the two. You can watch our Window to the Law: Working with Appraisers video or read the Residential Appraisal Process: FAQs for Agents to educate yourself on the process.
Appraisal Management Companies (AMCs) are an option for lenders and appraisers to consolidate the process of obtaining a home appraisal. NAR supports the regulation of AMCs through FIRREA, the Financial Institutions Reform and Recovery and Enforcement Act.