The Real Estate Appraisal Profession

A Brief History of Appraisals

One of the oldest professional groups in the United States is the American Society of Farm Managers and Rural Appraisers (ASFMRA), which was founded in 1929. The American Institute of Real Estate Appraisers was founded in 1932 by the Realtors association of that time. The Society of Real Estate Appraisers was formed in 1935 by the lending institution side of the real estate industry. The American Institute of Real Estate Appraisers and the Society of Real Estate Appraisers merged into the Appraisal Institute in 1991.

The Appraisal Institute is one of several appraisal organizations including the American Society Appraisers, National Association of Appraisers, the Right-of-Away Association, National Association of Independent Fee Appraisers, to name a few. Each organization offers designations, the most recognized of which is the MAI (member of the Appraisal Institute) because it was created and publicly promoted by the Realtors association.

In 1989, as a result of a financial crisis, Congress enacted the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). Chapter 13 of this legislation dealt with the appraisal industry. The Appraisal Foundation was established under this legislation to implement the Uniform Standards of Professional Appraisal Practice (USPAP) as the generally accepted set of appraisal standards in the United States. FIRREA demanded all the states to develop systems for licensing and certifying real estate appraisers.

The Appraisal Institute, which established the MAI designation, as well as the other groups named are voluntary membership organizations. FIRREA, under federal and state law, mandated that real estate appraisers be state licensed. The California State Bureau of Real Estate Appraisers (BREA) offers four levels of real estate appraiser licensing:

  • AT - Trainee License
  • AL - Residential License
  • AR - Certified Residential License
  • AG - Certified General License

BREA License Level Requirements

Trainee (AT)

  • Education Requirements*: 150 hours, covering specific modules including the 15-hour National USPAP Course (or its equivalent as determined by the Appraiser Qualifications Board (AQB). Trainee applicants must also complete an approved Supervisory/ Trainee Appraisers course prior to obtaining a Trainee Appraiser license. All initial applicants must complete an approved state and federal laws course prior to obtaining a license.
  • Experience Requirements: None
  • Scope of Practice: Any property which the supervising appraiser is permitted to appraise.

Residential (AL)

  • Education Requirements*: 150 hours, covering specific modules including the 15-hour National USPAP Course (or its equivalent as determined by the AQB); and 30 semester units of college-level education, OR an Associate's degree or higher (in any field). All initial applicants must complete an approved state and federal laws course prior to obtaining a license.
  • Experience Requirements: 2,000 hours and encompassing no less than 12 months of acceptable appraisal experience.
  • Scope of Practice: Any non-complex 1-4 family property with a transaction value up to $1 million; and non-residential property with a transaction value up to $250,000.

Certified Residential (AR)

  • Education Requirements*: 200 hours, covering specific modules, including the 15-hour National USPAP Course; and a Bachelor's degree or higher. All initial applicants must complete an approved state and federal laws course prior to obtaining a license.
  • Experience Requirements: 2,500 hours and encompassing no less than 2.5 years (30 months) of acceptable appraisal experience.
  • Scope of Practice: Any 1-4 family property without regard to transaction value or complexity; and non-residential property with a transaction value up to $250,000.

Certified General (AG)

  • Education Requirements*: 300 hours, covering specific modules, including the 15-hour National USPAP Course; and a Bachelor's degree or higher. All initial applicants must complete an approved state and federal laws course prior to obtaining a license.
  • Experience Requirements: 3,000 hours and encompassing no less than 2.5 years (30 months) of acceptable appraisal experience, of which 1,500 hours must be non-residential.
  • Scope of Practice: All real estate without regard to transaction value or complexity.

*Degrees and college credit must be from an accredited college or university

View/Download BREA License Levels and Requirements Here