NAHB’s Appraisal Working Group has been hard at work over the past year examining the nation’s appraisal system, talking to numerous stakeholders and developing recommendations for improving the system in order to alleviate one of the biggest problems that our members face in completing a new home sale — obtaining an accurate appraisal.
This tough work has resulted in development of the newly published Comprehensive Blueprint for Appraisal Reform, which NAHB will use in advocacy efforts with Congress, regulators and the appraiser community. The Blueprint focuses on the need for reform in four specific areas: 1) the overall regulatory framework for appraisals and oversight of the appraisal industry; 2) data and technology; 3) professional standards; and 4) practices, policies and procedures. Key recommendations outlined in the report call for streamlining and coordinating the current regulatory framework and devoting adequate resources to ensuring effective oversight and enforcement; creating a real estate data superhighway with a national real property registry and supporting networks; reaffirming and streamlining the key appraisal principles contained in the Uniform Standards of Professional Appraisal Practice; and establishing uniform credentialing standards specific to each area of appraisal practice.
Also recommended is the establishment of a single, consistent set of rules and guidelines for appraisals; appraiser consideration of all three valuation approaches — cost, income and sales comparison — the establishment of standards and processes to ensure engagement of the best appraiser for the assignment; and the establishment of workable procedures for expedited appeals of inaccurate or faulty appraisals. NAHB members can access Blueprint for Appraisal Reform on nahb.org.