There is more demand than supply. Hands-on experience is a requirement to become a real property appraiser, however the Texas Appraiser Licensing & Certification Board (TALCB) has fielded numerous calls from appraiser trainees expressing frustration over there not being enough resources for them to fulfill experience requirements.
In support of the health and growth of the appraisal industry, TALCB is working to inform trainees of all methods of gaining experience, which include the Practical Applications of Real Estate Appraisal (PAREA) program.
“We’re ready for PAREA,” said TALCB Commissioner Chelsea Buchholtz during the Board’s May 19 meeting. “We look forward to seeing these certificates of completion come in.”
What is PAREA?
PAREA is an alternative model for gaining appraisal experience. The Appraiser Qualifications Board (AQB) adopted the program in 2020 in response to appraisal trainees’ difficulty in finding supervisory appraisers.
PAREA offers practical experience through a range of online and virtual reality technology for licensed residential and certified residential appraisers. This program may replace 50-100% of experience required for licensure, depending on license type.
TALCB’s Licensing Division is tracking a 58% decrease in trainee applications received. They believe resources like PAREA will encourage future appraisers to remain in the industry.
“Everyone who drops out is a potential license holder that we’re losing, it’s a potential appraiser in an area that’s underserved,” said TALCB Chair Sara Oates.
PAREA's Anticipated Launches
The Appraisal Institute
On May 18, 2023, the AQB approved the first PAREA program, belonging to the Appraisal Institute (AI). AI’s next steps include a pilot phase for select participants who have completed Qualifying Education and reside in one of 20 “PAREA-ready” states—including Texas.
“The Appraisal Foundation has a list of about 3,000 people that have expressed difficulty in finding a supervisor and that are a potential pool of PAREA participants,” said Scott DiBiasio, an AI’s state & industry affairs manager. “We have our own list of 800 or so folks that meet the same parameters. I’m fairly confident that a good number of those folks on the list are from Texas. We will be selecting pilot program participants–at least in part–from those lists.”
AI will select PAREA pilot participants through those who have signed up for more information on it online. The Institute also plans to take registrations this September for its full PAREA launch, which will include around 200 people.
AI is still working on its Certified Residential portion of PAREA, as well as the cost to participate in the program.
“Market research has shown that value proposition—what PAREA is worth to someone in the marketplace—is around $5,000,” DiBiaso said. “Our pricing strategy may be different than that and include scholarships and discounts and payment plans. We have a commitment to The Appraisal Foundation that we will give preference of our scholarships to veterans and people who indicate a willingness to serve in rural areas. The scholarships will come from a number of different sources including AI.”
Those interested in participating in a PAREA program need to have already completed their Qualifying Education.
TALCB does not endorse or recommend any of the above or any particular education provider.
How did TALCB Ensure Texas was a PAREA-Ready State?
The Board is accepting PAREA and any other strategy that is helpful to aspiring appraisers to join the industry. Board staff are making sure they are working with education providers so that the agency is ready to accept trainees’ PAREA certificates of completion as soon as they come in.
Other Methods of Gaining Experience
The trainee-supervisor model is currently the most common way to gain experience in the real property appraisal field, either with traditional reports for clients or non-traditional “practice” reports. Another route is through practicum courses—which are not available in Texas but are under development.
