The Appraiser Qualifications Board of the Appraisal Foundation has approved Practical Application of Real Estate Appraisal (“PAREA”) that allows trainees to gain appraisal experience virtually via a computer.
The AQB’s Second Exposure Draft on PAREA provides that:
“Real estate appraisal training opportunities are lacking in many markets. It is often difficult for aspiring trainees to find mentors. PAREA’s purpose is to provide an alternative path to the current methods of obtaining real estate appraisal training. Its goal is to establish a framework for gaining experience that meets and, in some cases, exceeds the appraisal training methodology in place today. PAREA training will focus on appraisal practice fundamentals in general and not be restricted to a single locational mode of practice. In other words, it will provide experience in basic concepts that can be applied throughout various localities, be applicable to various property types.”
Types of training techniques that could be utilized, include, but are not limited to: Computer Based Learning, Video Gaming, Video Tutorial, Virtual Assistant, and Virtual Reality Training.
A video of the October 16, 2020 AQB meeting offers detail and insights on PAREA. Go to the video at the 41:59 mark for the Chairman’s overview. For the full presentation, go to the 1:00 mark. A majority of the Public Comments section, starting at the 1:15 mark, relate to PAREA.
With all this action, North Carolina trainees are advised not to get in a hurry. While the AQB had moved PAREA from the national level to the state level, there are at least two issues.
First, there are no programs or modules ready to go. While PAREA has been discussed for sometime, no vendors have released (as far as I know) any virtual reality programs for appraisal experience. So while they are allowed at the national level, they may not yet exist.
Second, the North Carolina Appraisal Board is required to go through procedural steps to implement PAREA. Should the Board wish to move forward with PAREA, there would need to be an evaluation of the NC Appraisers Act and the Board’s Administrative Rules to determine if a statute or rule change is required.
For now, North Carolina appraisers should be on the lookout for the traditional supervisor-trainee relationship to be shaken up or possibly replaced.
Want to hear more or discuss PAREA with North Carolina appraisers? Join me for “Running Your Appraisal Business” on December 8 at 9:00. This is a 7-hr appraisal CE class approved by the NC Appraisal Board and delivered via Zoom computer webinar. I’m teaching a total of 4 appraisal CE classes before the end of the year. Hope you will join me.
Want to become an Appraiser Trainee? Go here for the trainee series via the on demand online method. We are gauging interest in a possible trainee series delivered via an interactive video classroom. Go here to let us know of your interest.
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