What is PAREA?
Practical Applications of Real Estate Appraisal (PAREA)
PAREA provides an alternative pathway for appraisers to fulfill their experience requirements by using technology. PAREA is designed to offer practical experience in a virtual environment. The PAREA process would be provided through online and virtual reality technologies only.
In other words, a PAREA Appraiser would be able to attend all education classes as well as perform visual home visits, measure the square footage of a home, complete the entire appraisal process, and possibly pass their state licensing exam, all without ever having gone to a residential property in person.
The current process in NC requires the trainee to be under direct supervision of a NC Certified Residential or General Appraiser which has taken the required Supervisor Courses.
The Appraiser Qualifications Board created the PAREA program as an alternative to the traditional appraiser supervisor/trainee model for gaining appraisal experience. To meet the experience requirements for the residential appraiser credential, a participant can now choose between PAREA or the supervisor/trainee model in some states.
What is PAREA?
The Criteria and Guide Note for PAREA was adopted by the Appraiser Qualifications Board (AQB) of The Appraisal Foundation (TAF) on October 16, 2020 and became effective January 1, 2021. Some current highlights:
- It provides an alternative to the traditional supervisor/trainee model.
- Participants complete all Qualifying Education prior to beginning the PAREA program.
- In some states, it is initially available for Licensed Residential and Certified Residential experience credits. Partial experience credit for the Certified General credential may also be awarded.
- In some states, when complete, the participant is eligible for up to 100% of their experience credit for Licensed and Certified Residential credentials.
- PAREA Providers and participants must complete training on all topics listed in the detailed content outline. (which may change as PAREA is utilized)
- In some PAREA programs, PAREA Participants may receive periodic "mentoring", (not supervision) to help attempt sufficient demonstration of experience and understanding prior to moving forward in the program. There is no requirement for a "mentor" to have completed any additional training or any requirement for a "mentor" to have a certain number of years of experience as a Certified Appraiser.
- Participants will be required to produce USPAP-compliant demonstration appraisals within the program. It is unclear how a PAREA participant would have these "appraisals" reviewed to verify they are USPAP compliant.
- Participants, successfully completing PAREA must also pass the national licensing and certification exam for the appropriate credential level. (Licensed, Certified Residential or Certified General - which appraises commercial property)
AQB Q&As related to PAREA contain Q&As for all stakeholders and were last updated in July, 2022. To read, click HERE.
All PAREA programs must follow the PAREA Implementation Policies which were adopted by the AQB on December 15, 2020.
So while each PAREA provider's program will be reviewed by the AQB, there will not be any "standard" program in place across all providers.