What Are Appraisal Institute Review Designations?

In the organization’s latest video, the Appraisal Institute invited President Ken P. Wilson, MAI, SRA, to share some exciting news. The AI Board of Directors has decided to issue AI’s first new designations in more than 20 years.

AI: Why did the Appraisal Institute create the review designations program?

KW: The Appraisal Institute Board of Directors adopted the review designations program after years of research, responding in part to the growing and important role that appraisal review plays in risk management and mitigation for many clients and users of appraisal services. [Read more…]

The Increasing Importance of Appraisal Reviews

Since the bubble burst, appraisals have been under what many would call unfair scrutiny. Appraisers for years have reminded anyone who would listen that they reflect what’s happening in the market; nevertheless, economic uncertainty and a fluctuating real estate market leave more room for concern.

realtor workThough always an important valuation function, review appraisals in the current climate have become even more prominent within the profession and play a vital role in risk management and mitigation.

The Uniform Standards of Professional Appraisal Practice defines an appraisal reviews as “the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal, appraisal review, or appraisal consulting assignment.”

In their July 2007 research report, “Appraisal Reviews and Their Importance,” James R. MacCrate, MAI, and Noreen Whysel explain that a number of things could cause issues in an appraisal report, often requiring an appraisal review. These include the following: [Read more…]