Trouble Finding a Supervisory Appraiser? Check out PAREA!


Practical Applications of Real Estate Appraisal (PAREA)

(**) Disclosure: This post may contain affiliate links, meaning our company, JCHQ Publishing will get a commission if you decide to make a purchase through the links, but at no additional cost to you.

To obtain a real estate appraiser license, you need to work under a Certified Appraiser’s supervision and accumulate the required number of work hours. 

However, as I talked to appraiser trainees, many told me that they have trouble finding such a mentor. The Appraisal Qualification Board (AQB) also realizes this challenge, so starting on January 1, 2021, they launched a program called Practical Applications of Real Estate Appraisal (PAREA). 

Since you will spend the money and time completing the appraisal continuing education, why not pick the ones that could really develop your appraisal practice? Here are the Top 10 Appraisal Courses that I like

What is a Practical Applications of Real Estate Appraisal (PAREA)?  

What is a Practical Applications of Real Estate Appraisal (PAREA)?

PAREA is another path for aspiring appraisers to fulfill their experience requirements through a virtual environment. It combines appraisal theory and methodology in real-world online simulations.

PAREA can be used as a substitute for the supervisor/trainee model. It is good for obtaining experience credit for the Licensed/Certified Residential Appraiser license. But a partial work experience may also be counted for the Certified General Credential. 

Before you can start in PAREA, you must complete all Qualifying Education first. 

Within the program, you must complete all training topics listed in the detailed content outline. There will be periodic mentoring to ensure you can demonstrate sufficient experience and understanding.

Furthermore, you need to produce USPAP-compliant appraisals.

Could this be the future look for Practical Applications of Real Estate Appraisal (PAREA)?

To better understand PAREA, here is a demo clip from the Appraisal Foundation channel. It is a fun and short video (about 12 minutes) to watch. John Brenan, Vice President of Appraisal Issues, demonstrated what could PAREA look like through virtual reality.

This is just one of the possibilities of how PAREA could look.

However, I don’t think it necessarily has to be used with VR goggles. (Somehow, I always got dizzy wearing one.) I’m guessing there would be other formats where students could see the properties just through a laptop or tablet.

Furthermore, it would be nice if the demo could also show the interior of the property.

Who can administer PAREA? 

PAREA appraisal provider

Any organization, company, institution, individual, or collaboration can apply in becoming an Appraiser Qualifications Board (AQB) approved PAREA provider. 

The provider needs to demonstrate its PAREA program meets all criteria indicated on the AQB’s Implementation Policies. For example, the training should be delivered through reliable technology and that there are qualified mentors to educate the appraiser trainees. 

At the time I’m writing this post, the PAREA is relatively new. I talked to several appraisal education providers, and they have not yet implemented such a program. Hopefully, more companies will start administering the PAREA in the near future. 

Providers may submit a Preliminary Design Review to the AQB before they develop the entire program. 

Although the AQB imposes the nationwide minimum requirement for getting real estate appraiser licenses, each state could implement its own standard. Therefore, you should check with the Appraisal Board in your state whether they recognize the PAREA work experience credit. 

What are the benefits of PAREA?

What are the benefits of PAREA

The PAREA is a great alternative to the trainee/supervisor model. Although you need to pay a program fee, PAREA can save you the time and hassle of finding a supervisor. It is especially helpful to those who cannot find a supervisor otherwise.

Unlike in most states, which only allows a supervisor to take on two appraiser trainees at a given time, there is no required mentor to participant ratio in the PAREA program.

As long as there is timely and competent mentoring for all trainees, then it is fine. This flexibility helps more aspiring appraisers to get the training they need.

Furthermore, I agree with John Brenan in the clip. He stated that in a traditional trainee/supervisor model, you probably could only learn from the appraisal assignments that your supervisor is good at. It could be challenging if you want to equip knowledge on other property types.

But with the PAREA program, you could learn all kinds of appraisal assignments virtually. As you can see in the clip, you can change the subject property with just a click.

Of course, I’m not saying the PAREA can completely replace the trainee/supervisor model. After all, there are certain things you can learn from on-site training. Here is another post with some ideas to find a supervisory appraiser.

(**) Affiliate Disclosure: Please note that some of the links above are affiliate links, and at no additional cost to you. Our company, JCHQ Publishing will earn a commission if you decide to make a purchase after clicking on the link. Please understand that we include them based on our experience or the research on these companies or products, and we recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something through the links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. Some of the posts on RealEstateCareerHQ.com may contain views and opinions from the interviewees. They do not reflect our view or position.

Reference:

  • Appraisal Practical Applications of Real Estate Appraisal (PAREA) (source)
  • PAREA Provider Q&A (source)
  • Second Exposure Draft o f Practical Applications of Real Estate Appraisal (PAREA) (source)

Jacob Coleman

Jacob is a content writer and a real estate investor. He has experience working with different real estate professionals throughout the years. (i.e., appraisers, real estate agents, property managers, home inspectors.) In order to build a career you love, Jacob believes not only you need a thorough understanding about the profession, but you also have to find out what type of jobs could match your personality, lifestyle and expectation.

2 thoughts on “Trouble Finding a Supervisory Appraiser? Check out PAREA!

  1. I am a real estate realtor and Broker with 20 plus years of selling and listing properties. My focus has been on residential properties but have also worked on some ranches, lots a few commercial deals. I have always been interested in studying and becoming a licensed Appraisor. I am interested in the PAREA model and would appreciate any information, including other educational requirements. Thank you.

    1. Hi Alma, I just talked to several real estate appraisers. They said the PAREA is still in the preliminary stage, and not too many states have implemented it yet. Hopefully, we can see more states will adapt to this program in the future.

      In regards to the appraiser licensing requirement, here’s another page you should check out. It covers the licensing requirement (i.e. education, exam) of different states.

      Hope it helps.

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts