Breaking Down Barriers in Real Estate Appraisal: A New Path Forward

Introduction

In an effort to increase diversity in the real estate appraisal profession, the Appraisal Foundation has announced the establishment of a $1.22 million scholarship fund. This initiative aims to provide aspiring appraisers with an alternative, more inclusive path to fulfilling experience requirements that have historically contributed to a lack of diversity in the field.

The Problem: A Lack of Diversity in Real Estate Appraisal

According to the Bureau of Labor Statistics, in 2022, fewer than 1% of property appraisers and assessors were Black, and 94.7% were white. This makes the field one of the least racially diverse of 800 occupations surveyed. The Appraisal Foundation’s experience requirements have been criticized for perpetuating the homogeneity of the profession, as aspiring appraisers are often required to find a licensed appraiser who is willing to supervise their on-the-job experience hours.

The Solution: A New Path Forward

The Appraisal Foundation’s Pathway to Success initiative will provide aspiring appraisers with an alternative, more inclusive path to fulfilling experience requirements. The initiative includes the establishment of a $1.22 million scholarship fund, which will support aspiring appraisers who are completing their experience requirements by completing PAREA modules.

What is PAREA?

PAREA, or the Practical Applications of Real Estate Appraisal program, is an online program that provides simulations showing aspiring appraisers how to apply theory and methodology to real-world examples. The program also provides mentoring and guidance from experienced appraisers who hold the most recognized designations in the profession.

The Benefits of PAREA

By providing aspiring appraisers with hands-on experience and guidance from experienced professionals, PAREA aims to increase diversity and inclusivity in the real estate appraisal profession. The program will also help to build a class of appraisers based on what they know, rather than who they know.

The Role of HUD

The Department of Housing and Urban Development (HUD) has played a crucial role in promoting diversity and inclusivity in the real estate appraisal profession. In 2021, HUD initiated a rare secretary-initiated complaint against the Appraisal Foundation, alleging that the organization’s experience requirements perpetuated discrimination. The complaint led to an agreement between HUD and the Appraisal Foundation, which includes the establishment of the scholarship fund and the implementation of PAREA.

Conclusion

The establishment of the scholarship fund and the implementation of PAREA are significant steps towards increasing diversity and inclusivity in the real estate appraisal profession. By providing aspiring appraisers with an alternative, more inclusive path to fulfilling experience requirements, the Appraisal Foundation is helping to build a more diverse and inclusive profession.

FAQs

Q: What is the purpose of the scholarship fund?
A: The scholarship fund aims to provide aspiring appraisers with financial support to complete their experience requirements and become licensed appraisers.

Q: What is PAREA, and how does it work?
A: PAREA is an online program that provides simulations and mentoring from experienced appraisers to help aspiring appraisers apply theory and methodology to real-world examples.

Q: Who is eligible for the scholarship fund?
A: Eligibility requirements for the scholarship fund have not been announced, but more information will be shared when the program is formally announced.

Q: What is the role of HUD in promoting diversity and inclusivity in the real estate appraisal profession?
A: HUD has played a crucial role in promoting diversity and inclusivity in the real estate appraisal profession, including initiating a complaint against the Appraisal Foundation and requiring the organization to establish a scholarship fund and implement PAREA.

Q: How will the scholarship fund and PAREA increase diversity and inclusivity in the real estate appraisal profession?
A: The scholarship fund and PAREA will increase diversity and inclusivity in the real estate appraisal profession by providing aspiring appraisers with an alternative, more inclusive path to fulfilling experience requirements and building a class of appraisers based on what they know, rather than who they know.

Author: www.inman.com

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