Practical Applications of Real Estate Appraisal (PAREA)
PAREA provides another pathway for aspiring appraisers to fulfill their experience requirements by taking advantage of innovative technology. PAREA is designed to offer practical experience in a virtual environment combining appraisal theory and methodology in real-world simulations. This experience can be provided through a wide range of online and virtual reality technologies.
The Appraiser Qualifications Board created the program as an alternative to the traditional supervisor/trainee model for gaining appraisal experience. To meet the experience requirements for the Licensed Residential and the Certified Residential credential level, a participant can now choose between PAREA or the supervisor/trainee model.
What is PAREA?
The Criteria and Guide Note for PAREA was adopted by the AQB on October 16, 2020 and became effective January 1, 2021. Below are the highlights:
- It provides an alternative to the traditional supervisor/trainee model.
- Participants complete all Qualifying Education prior to beginning program.
- Initially available for Licensed Residential and Certified Residential experience credits. Partial experience credit for the Certified General credential can also be awarded.
- When complete the participant is eligible for up to 100% of experience credit for Licensed and Certified Residential credentials.
- Providers and participants must complete training on all topics listed in the detailed content outline.
- Participants will receive periodic mentoring throughout, ensuring sufficient demonstration of experience and understanding prior to moving forward in the program.
- Participants will be required to produce USPAP-compliant appraisals within the program.
- Participants, successfully completing PAREA must also pass the national licensing and certification exam for the appropriate credential level.
Read PAREA Q&As on page 53 on some frequently asked questions.
The Appraiser Qualifications Board has provided approval of Appraisal Institute's Practical Applications of Real Estate Appraisal (AI PAREA) program for the licensed residential and certified residential path. The program is now available. Learn more about AI PAREA in this video clip.
Participants: Are you interested in attending a PAREA program?
The Appraisal Foundation is in active communication with those who have expressed an interest in creating a PAREA program and we have just begun to receive applications for preliminary concept review. The AQB and the Foundation are looking forward to having an approved PAREA program available in the market soon.
If you would like to be notified when a program becomes available, please fill out this survey.
Providers: Are you interested in developing a PAREA program?
All PAREA programs must follow the PAREA Implementation Policies
which were adopted by the AQB on December 15, 2020. The policies provide guidance to offer a path to success for providers and participants, while encouraging innovation.
Providers are encouraged to submit their program concept for Preliminary Design Review prior to full program development. You can submit your Preliminary Design Review here
The Licensed Residential Minimum Requirements Matrix
and the Certified Residential Minimum Requirements Matrix
are required for the final application to submit your PAREA Program for approval. While not required for the Preliminary Design Review submission, providing these documents will allow the AQB to provide better feedback on the proposal. Therefore, the AQB recommends you submit a completed matrix for your Preliminary Design Review submission.
When you are ready to submit your program for approval, complete the application
using the Provider Guide
for help, and the PAREA Minimum Content Requirements for Licensed Residential
and/or Certified Residential
Pathways to Success Conditional Grant
The Appraisal Foundation’s Pathway to Success Conditional Grant has been awarded to the Appraisal Institute in collaboration with the National Society of Real Estate Appraisers.
States: Do you need more information about PAREA?
Please review our PAREA Handout for States. This handout is a brief fact sheet meant to communicate important aspects of PAREA.
AQB ensures approved PAREA programs:
- Include PAREA section of the Criteria
- Present a comprehensive demo of the program to the AQB
- Follow the PAREA Implementation Policies
- Meet the PAREA Minimum Content Requirements for Licensed Residential and/or Certified Residential Classifications.
State Adoption of PAREA
Our informal tracking shows that around 48
states have adopted PAREA either fully, partially, or by reference in their laws. The below data reflects the Foundation’s internal tracking of state regulations. It is subject to change as state regulations change. You should always check with your state appraiser regulatory agency
to confirm their status regarding PAREA. If you are looking for model of PAREA legislative language, please contact a state regulatory agency
, or email Aida Dedajic
Please contact Aida Dedajic.