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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)?
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?
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?
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.
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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.