“This is a huge step forward for the real estate valuation profession,” said Appraisal Institute President Ken P. Wilson, MAI, SRA. “The Standards of Valuation Practice will provide a high-quality, straight-forward option for appraisers that is principles-based and not rules-based.”
The Appraisal Institute’s policy-making Board of Directors adopted the proposed Standards of Valuation Practice at its Aug. 7-8 meeting in Austin, Texas. The Appraisal Institute had sought input on the proposed Standards of Valuation Practice during three comment periods in the preceding nine months.
The Standards of Valuation Practice:
- Can be used as an alternative to the Uniform Standards of Professional Appraisal Practice or the International Valuation Standards when the use of USPAP or IVS is not required and the use of the SVP would be appropriate;
- Will serve as an alternative set of standards that could be used, not an additional set of required standards; and
- Will not supplant USPAP or other national standards.
“The SVP will establish a higher level of professional practice, engender public trust and facilitate the growth and advancement of the valuation profession,” said Wilson. “The SVP will recognize the broad area of practice of valuation professionals and the diverse needs of users of valuation services.”
Effective Jan. 1, 2015, Appraisal Institute Designated members, Candidates for Designation and Practicing Affiliates will be required to comply with either:
- The Standards of Valuation Practice, promulgated by the Appraisal Institute, and the Certification Standard of the Appraisal Institute; or
- Applicable national or international standards, and the Certification Standard of the Appraisal Institute.
The Appraisal Institute is the historic leader in establishing standards for the valuation profession. The Appraisal Institute’s two predecessor organizations, which unified in 1991, were among the first to establish standards for the valuation profession; the American Institute of Real Estate Appraisers created standards in 1932 and the Society of Real Estate Appraisers did so in 1936. AIREA and the Society regularly revised and strengthened their Standards over the decades that followed.
The Standards of Valuation Practice are one of three strategic initiatives the Appraisal Institute announced in October 2013. The Appraisal Institute said then that it would:
- issue proposed standards of valuation practice that could serve as an alternative for valuation professionals where national or other standards are not required;
- expand delivery of Appraisal Institute education, becoming more proactive in identifying and pursuing appraisal educational opportunities; and
- create a new certification organization to establish a future generation of cross-disciplinary valuation professionals and to enhance their marketability in a competitive job environment (which was accomplished with the May 2014 introduction of the International Center for Valuation Certification).
Read the Standards of Valuation Practice here.