What is a Certified General Appraiser?
A Certified General Appraiser is a professional who is authorized and qualified to appraise real estate of any type or size. This certification is recognized under various state laws in the United States, with formal adoption happening prominently in the early 1990s. The designation requires rigorous education, extensive experience, and successful completion of comprehensive examinations.
Historical Context
Early Standards
Prior to the 1990s, the appraisal industry was loosely regulated, resulting in significant disparities in appraisal quality and reliability. The savings and loan crisis of the 1980s highlighted the need for standardized appraisal practices.
Adoption of Appraiser Certification Law
In response to the crisis, Congress enacted the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (FFIEC) and the Appraisal Foundation to develop regulatory standards. By the early 1990s, most states had adopted these certification laws, which include stringent education and experience requirements.
Qualification and Certification Process
Educational Requirements
Certified General Appraisers must fulfill specific educational prerequisites:
- A Bachelor’s degree or higher.
- 300 hours of qualifying education covering subjects such as appraisal principles, procedures, and market analysis.
Experience Requirements
Candidates must also document:
- A minimum of 3,000 hours of appraisal experience over a period of not less than 30 months, with at least 1,500 hours in non-residential appraisal work.
Examinations
Lastly, individuals must pass:
- The National Uniform Licensing and Certification Examination which tests on appraisal standards, procedures, and applicable laws.
Roles and Responsibilities
Scope of Work
Certified General Appraisers perform appraisals on:
- Residential property.
- Commercial real estate.
- Industrial property.
- Agricultural land.
Standards and Compliance
They must adhere to the Uniform Standards of Professional Appraisal Practice (USPAP), ensuring ethical and procedural integrity.
Special Considerations
Continuing Education
Certified General Appraisers are required to complete continuing education courses to maintain their certification:
- At least 28 hours of approved coursework every two years.
- Including a mandatory 7-hour USPAP update course.
State and Federal Regulations
Appraisers must stay compliant with both state-specific regulations and federal laws to ensure their appraisals meet all necessary legal standards.
Applicability in Various Sectors
Real Estate Market
Certified General Appraisers are crucial in:
- Property sales and acquisitions.
- Mortgage financing.
- Investment analysis.
Banking and Finance
Banks rely on accurate appraisals from certified professionals to mitigate risk and ensure proper valuation of collateral.
Comparisons to Other Certifications
Certified Residential Appraiser
Unlike Certified General Appraisers, Certified Residential Appraisers can only appraise:
- 1-4 unit residential properties.
Licensed Appraiser
A Licensed Appraiser’s scope is typically more restricted compared to Certified General Appraisers and often limited to less complex properties.
Related Terms
- Appraisal: An unbiased estimate of the value of a property.
- Market Value: The most probable price a property should bring in a competitive market.
- USPAP: Uniform Standards of Professional Appraisal Practice; guidelines for ethical and competent appraisal practice.
FAQs
What distinguishes a Certified General Appraiser from other appraisal certifications?
What ongoing requirements must Certified General Appraisers meet?
How does the certification process benefit the real estate market?
References
- “The Appraisal Foundation.”
- “Uniform Standards of Professional Appraisal Practice (USPAP).”
- “Federal Financial Institutions Examination Council (FFIEC).”
Summary
A Certified General Appraiser plays a critical role in the accurate valuation of diverse property types under regulated and standardized guidelines, ensuring the stability and reliability of real estate markets and financial institutions. With stringent education, experience requirements, and ongoing professional development, they contribute to maintaining high standards in the appraisal profession.
