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Appraisal & Valuation | www.nar.realtor ") //-- ") //-- ") //-- Skip to main content Menu Home Pay Dues Sign In Real Estate Topics Coronavirus Being a Real Estate Professional Starting Your Career Being a Broker Being an Agent Professional Development Agent Finances Work/Life Balance Outreach Safety Farming & Prospecting License Reciprocity & License Recognition Ethics and Professionalism Browse all Being a Real Estate Professional Commercial & Investment Real Estate Condominiums Starting Your Career in Commercial Real Estate Foreign Investors Qualified Opportunity Zones Multiple-Family Properties Commercial Real Estate Lending Section 1031 Like-Kind Exchange Property Management Commercial Green Buildings Rental Properties Retail Properties Ground Leases Office Property Industrial & Warehouse Drones REMIC Sale Leasebacks & Synthetic Leases Business Value Site Selection Browse all Commercial & Investment Real Estate Financing & Credit Mortgage Financing Fraud, Negligence & Liability Credit Policy Seller Financing Commercial Real Estate Lending Veterans Affairs Short Sales & Foreclosures Student Loan Debt Multifamily Housing Development & Insurance Appraisal & Valuation Escrow Accounts/Earnest Money Browse all Financing & Credit Insurance Natural Disaster Insurance National Flood Insurance Program Health Care Reform Terrorism Insurance Tort Reform - Class Action Homeowners Insurance Browse all Insurance Land Use & Property Rights Hazards & Disclosures Sustainability Transportation and Infrastructure Eminent Domain Environmental Issues Zoning Effects of Low-Income Housing on Property Values Effects of Trails and Greenways on Property Values Golf Courses Browse all Land Use & Property Rights Legal Arbitration & Dispute Resolution Fair Housing Copyright Fraud, Negligence & Liability Hazards & Disclosures Risk Management Antitrust Independent Contractor Status Telemarketing & Cold-Calling Closing Agency Patent Litigation Reform FCC Do Not Fax Rule Spam Email FACT Act Browse all Legal Marketing MLS & Online Listings Social Media Telemarketing & Cold-Calling Sales Tips & Techniques Direct Mail Effective Online Marketing Auctions Browse all Marketing Residential Real Estate Condominiums Vacation, Resort, and Second Homes FHA Programs Rural Housing Programs Direct Buying Section 8 Voucher Reform Homeownership Education & Counseling Mortgage Interest Deduction Design & Architecture Sales Tips & Techniques Home Inspections Homeowners Insurance Browse all Residential Taxes Tax Reform Sales Tax on Services Qualified Opportunity Zones Property Taxes Mortgage Interest Deduction Section 1031 Like-Kind Exchange Internet Sales Tax Independent Contractor Status Depreciation of Real Property Browse all Taxes Technology Data Privacy & Security Electronic Signatures & Authorizations Social Media Net Neutrality Top-Level Domains Patent Litigation Reform Drones Spam Email Broadband Access Smart Homes Real Estate Transaction Standards (RETS) Digital Cameras & Photography Browse all Technology International Real Estate Vacation, Resort, and Second Homes Foreign Investment in Real Property Tax Act (FIRPTA) Foreign Investors International Referrals REALTORS® and the Global Marketplace Working With International Clients Immigration Reform Browse all International Real Estate All Topics Membership Directories Member Center REALTOR Benefits® Program Logos and Trademark Rules Become a Member Dues Information Pay Dues Research & Statistics Research Reports Housing Statistics Commercial Research State & Metro Area Data Presentation Slides Statistical News Release Schedule Political Advocacy Federal Advocacy State & Local Advocacy REALTORS® Political Action Committee (RPAC) REALTOR® Party Get Involved Education All NAR & Affiliate Courses Continuing Education Designations & Certifications C2EX NAR Academy Code of Ethics Training Classes at NAR Conferences & Meetings Library & Archives Events REALTORS® Conference & Expo REALTORS® Legislative Meetings & Trade Expo AE Institute iOi Summit Broker Summit Leadership Week iOi Summit State Convention Schedule Event Photos All Events About NAR History Code of Ethics Governing Documents Policies Leadership & Staff Committee & Liaisons Awards & Grants Affiliated Organizations NAR's Consumer Outreach Newsroom Browse You are here Home Real Estate Topics Financing & Credit Home Real Estate Topics Financing & Credit Appraisal & Valuation Share Facebook Twitter LinkedIn Print Overview Political Advocacy References Overview An appraisal is an opinion of value used for real-estate-related financial transactions. Appraisals are required by a state licensed or certified appraiser for most transactions above $250,000. An appraiser’s report will typically include the type of property inspection, approaches to value required, and any lender-specific requirements. The National Association of REALTORS® represents approximately 25,000 state-licensed and certified appraisers throughout the country. NAR’s Responsible Valuation Policy states that “persons who perform appraisals of real property shall be licensed or certified by their respective state regulatory agency and the appraisal shall be conducted in accordance with standards established in the Uniform Standards of Professional Appraisal Practice (USPAP).” An appraisal is an important part of the home buying process because it assures the lender the property has adequate collateral to make the loan. NAR closely monitors federal legislative and regulatory issues related to appraisals. NAR has long advocated for an independent appraisal process and enhanced education requirements that allow appraisers to produce the most credible appraisal reports possible. Political Advocacy Current Legislation/Regulation Real Property Appraiser Qualification Criteria Final Rule on Commercial Appraisal Threshold Level Final Rule on Residential Appraisal Threshold Level In-Depth Congressional testimonies Letters to federal agencies Issue summary NAR Federal Issues Tracker Legislative Contact(s): Sehar Siddiqi, ssiddiqi@nar.realtor 202-383-1176 Sydney Barron, sbarron@nar.realtor 202-383-1089 Regulatory Contact(s): Sehar Siddiqi, ssiddiqi@nar.realtor 202-383-1176 What is the fundamental issue? Over the past year, NAR members have identified several valuation issues impacting real estate transactions. Most concerns are related to appraisals, including the increased use of automated or alternative valuation methods, a perceived shortage of appraisers, and the challenge of attracting new appraisers to the business. I am a real estate professional. What does this mean for my business? Automated or Alternative Valuation Methods: Many in the housing industury, including NAR, support the role of appraisals and their contribution to the safety and soundness of the mortgage lending industry. However, there is an increased reliance on AVMs for valuation purposes, as evidenced by the decisions of both Fannie Mae and Freddie Mac to allow data driven valuations, rather than traditional in-person appraisals, for certain, lower risk purchase transactions. NAR is supportive of technological advancements that support the housing market, but has some concerns with the use of automated valuations in purchase transactions. Appraiser Shortages: Appraisers are leaving the profession at the same time that entry of new appraisers is dwindling. Entrepreneurial opportunities for appraisers are disappearing and many are concerned with over-regulation in the field. There are also barriers to entry, such as education requirements, that could be affecting incoming appraiser numbers. Appraiser Qualifications: It is becoming increasingly difficult to attract new entrants into the appraisal profession. In an effort to bring more qualified trainees into the profession, the Appraisal Qua...