Current through Register Vol. 63, No. 9, September 1, 2024
(1) General Guidelines:
(a) With exception to AQB-approved courses on
Valuation Bias and Fair Housing Laws and Regulations, a Qualifying Education
Course must be a real estate appraisal course that involves a minimum of
fifteen classroom hours of instruction (including examination time) on
acceptable topics;
(b) The course
must generally be broad in scope and must cover various principles, concepts,
standards, practices and/or methods that are applicable generally to the
performance of a wide range of appraisal assignments that will commonly be
encountered by licensed or certified appraisers. The course must be intended to
provide the student with a broad-based foundation of knowledge and skills in
real estate appraising;
(c)
Coverage in a course of additional specific topics not listed as typical
specific topics under the categories of acceptable courses will not exclude
that course from consideration provided that:
(A) The principal focus of the course is not
on such additional topics;
(B) The
additional topics covered are appropriate (consistent with course learning
objectives); and
(C) The course
contains not less than fifteen classroom hours of instruction on acceptable
topics. However, the course must still be consistent with the parameters
described in these rules.
(d) The section titled "Unacceptable Courses"
describes specifically the categories of courses that are not acceptable as
qualifying education under these rules;
(e) Courses will be evaluated based on their
content without regard to the course title;
(f) The following factors shall be used to
convert university, college, junior college and community college course
credits into classroom hours:
(A) One (1)
semester credit hour is equivalent to 1.5 quarter credit hours.
(B) One (1) quarter hour credit is equivalent
to .67 semester credit hours.
(2) Qualifying Education Requirements for
Licensure and/or Certification:
(a) Only
courses approved by the AQB "Required Core Curriculum" will be credited toward
the education requirements. Approved courses have been assigned to curricula as
follows:
(A) Basic Appraisal
Principles;
(B) Basic Appraisal
Procedures;
(C) Residential Market
Analysis and Highest and Best Use;
(D) Residential Appraiser Site Valuation and
Cost Approach;
(E) Residential
Sales Comparison and Income Approaches;
(F) Residential Report Writing and Case
Studies;
(G) Statistics, Modeling
and Finance;
(H) Advanced
Residential Applications and Case Studies;
(I) General Appraiser Market Analysis and
Highest and Best Use;
(J) General
Appraiser Sales Comparison Approach;
(K) General Appraiser Site Valuation and Cost
Approach;
(L) General Appraiser
Income Approach;
(M) General
Appraiser Report Writing and Case Studies;
(N) The Appraisal Foundation's 15-Hour
National USPAP Course or its equivalent;
(O) Appraisal Subject Matter Elective
courses.
(P) Valuation Bias and
Fair Housing Laws and Regulations
(b) For state licensed appraisers, courses in
the following categories and credit hours must be completed with the successful
passage of an examination, as specified in the AQB Real Property Appraiser
Qualification Criteria and these rules:
(A)
Course(s) on Basic Appraisal Principles (30 hours in not less than 15 hour
increments);
(B) Course(s) on Basic
Appraisal Procedures (30 hours in not less than 15 hour increments);
(C) Course(s) on Residential Market Analysis
and Highest and Best Use (15 hours);
(D) Course(s) on Residential Appraiser Site
Valuation and Cost Approach (15 hours);
(E) Course(s) on Residential Sales Comparison
and Income Approaches (30 hours in no less than 15 hour increments);
(F) Course(s) on Residential Report Writing
and Case Studies (15 hours)
(G) The
Appraisal Foundation's 15-Hour National USPAP Course or its equivalent (15
hours)
(H) Effective January 1,
2026, course(s) on Valuation Bias and Fair Housing Laws and Regulations (8
hours).
(c) For state
certified residential appraisers, courses in the following categories and
credit hours must be completed with the successful passage of an examination,
as specified in the AQB Real Property Appraiser Qualification Criteria and
these rules:
(A) Course(s) on Basic Appraisal
Principles (30 hours in not less than 15 hour increments);
(B) Course(s) on Basic Appraisal Procedures
(30 hours in not less than 15 hour increments);
(C) Course(s) on Residential Market Analysis
and Highest and Best Use (15 hours);
(D) Course(s) on Residential Appraiser Site
Valuation and Cost Approach (15 hours);
(E) Course(s) on Residential Sales Comparison
and Income Approaches (30 hours in no less than 15 hour increments);
(F) Course(s) on Residential Report Writing
and Case Studies (15 hours);
(G)
Course(s) on Statistics, Modeling and Finance (15 hours);
(H) Course(s) on Advanced Residential
Applications and Case Studies (15 hours);
(I) Appraisal Subject Matter Electives (20
hours);
(J) The Appraisal
Foundation's 15-Hour National USPAP Course or its equivalent (15
hours)
(K) Effective January 1,
2026, course(s) on Valuation Bias and Fair Housing Laws and Regulations (8
hours).
(d) For state
certified general appraisers, courses in the following categories and credit
hours must be completed with the successful passage of an examination, as
specified in the AQB Real Property Appraiser Qualification Criteria and these
rules:
(A) Course(s) on Basic Appraisal
Principles (30 hours in not less than 15 hour increments);
(B) Course(s) on Basic Appraisal Procedures
(30 hours in not less than 15 hour increments);
(C) Course(s) on General Appraiser Market
Analysis and Highest and Best Use (30 hours in not less than 15 hour
increments);
(D) Course(s) on
Statistics, Modeling and Finance (15 hours);
(E) Course(s) on General Appraiser Sales
Comparison Approach (30 hours in not less than 15 hour increments);
(F) Course(s) on General Appraiser Site
Valuation and Cost Approach (30 hours in not less than 15 hour
increments);
(G) Course(s) on
General Appraiser Income Approach (60 hours in not less than 15 hour
increments);
(H) Course(s) on
General Appraiser Report Writing and Case Studies (30 hours in not less than 15
hour increments);
(I) Appraisal
Subject Matter Electives (30 hours in not less than 15 hour
increments);
(J) The Appraisal
Foundation's 15-Hour National USPAP Course or its equivalent (15
hours)
(K) Effective January 1,
2026, course(s) on Valuation Bias and Fair Housing Laws and Regulations (8
hours).
(3)
Acceptable Courses. Listed below are the categories of courses that are
acceptable under these rules:
(a) Courses on
Basic Appraisal Principles (30 hours). A course(s) in this category must be
broad in scope and focus on basic real estate appraisal concepts, principles,
and methods that are applicable generally to the appraisal of most types of
real estate. Basic Appraisal Principles courses would substantially include the
following specific topics:
(A) Real Property
Concepts and Characteristics:
(i) Basic Real
Property Concepts;
(ii) Real
Property Characteristics;
(iii)
Legal Description.
(B)
Legal Consideration:
(i) Forms of
Ownership;
(ii) Public and Private
Controls;
(iii) Real Estate
Contracts;
(iv) Leases.
(C) Influences on Real Estate
Values:
(i) Governmental;
(ii) Economic;
(iii) Social;
(iv) Environmental, Geographic and
Physical.
(D) Types of
Value:
(i) Market Value;
(ii) Other Value Types.
(E) Economic Principles:
(i) Classical Economic Principles;
(ii) Application and Illustrations of the
Economic Principles.
(F)
Overview of Real Estate Markets and Analysis:
(i) Market Fundamentals, Characteristics, and
Definitions;
(ii) Supply Side
Analysis;
(iii) Demand
Analysis;
(iv) Use of Market
Analysis;
(G) Ethics and
How They Apply in Appraisal Theory and Practice;
(H) Valuation Bias and Fair Housing Laws and
Regulations.
(b) Courses
on Basic Appraisal Procedures (30 hours). A course(s) in this category must be
broad in scope and focus on basic real estate appraisal procedures that are
applicable generally to the appraisal of most types of real estate. Basic
Appraisal Procedures courses would substantially include the following specific
topics:
(A) Overview of Approaches to
Value;
(B) Valuation Procedures:
(i) Defining the Problem;
(ii) Collecting and Selecting Data;
(iii) Analyzing;
(iv) Reconciling and Final Value
Opinion;
(v) Communicating the
Appraisal.
(C) Property
Description:
(i) Geographic Characteristics of
the Land/Site;
(ii) Geologic
Characteristics of the Land/Site;
(iii) Location and Neighborhood
Characteristics;
(iv) Land/Site
Considerations for Highest and Best Use;
(v) Improvements Architectural Styles and
Types of Construction;
(vi) Special
Energy Efficient Characteristics of the Improvements.
(D) Residential Applications.
(c) Courses on Residential Market
Analysis and Highest and Best Use (15 hours) that would substantially include
the following specific topics:
(A) Residential
Markets and Analysis:
(i) Market Fundamentals,
Characteristics and Definitions;
(ii) Supply Side Analysis;
(iii) Demand Analysis;
(iv) Use of Market Analysis.
(B) Highest and Best Use:
(i) Test Constraints;
(ii) Application of Highest and Best
Use;
(iii) Special
Considerations;
(iv) Market
Analysis;
(v) Case
Studies.
(d)
Courses on Residential Appraiser Site Valuation and Cost Approach (15 hours)
that would substantially include the following specific topics:
(A) Site Valuation:
(i) Methods;
(ii) Case Studies.
(B) Cost Approach:
(i) Concepts and Definitions;
(ii) Replacement/Reproduction Cost
New;
(iii) Accrued
Depreciation;
(iv) Methods of
Estimating Accrued Depreciation;
(v) Case Studies.
(e) Courses on Residential Sales
Comparison and Income Approaches (30 hours) that would substantially include
the following specific topics:
(A) Valuation
Principles & Procedures - Sales Comparison Approach;
(B) Valuation Principles & Procedures -
Income Approach;
(C) Finance and
Cash Equivalency;
(D) Financial
Calculator Introduction;
(E)
Identification, Derivation and Measurement of Adjustments;
(F) Gross Rent Multipliers;
(G) Partial Interests;
(H) Reconciliation;
(I) Case Studies and Applications.
(f) Courses on Residential Report
Writing and Case Studies (15 hours) that would substantially include the
following specific topics:
(A) Writing and
Reasoning Skills;
(B) Common
Writing Problems;
(C) Form
Reports;
(D) Report Options and
USPAP Compliance;
(E) Case
Studies.
(g) Courses on
Statistics, Modeling and Finance (15 hours) that would include the following
specific topics:
(A) Statistics;
(B) Valuation Models (AVM's and Mass
Appraisal);
(C) Real Estate
Finance.
(h) Courses on
Advanced Residential Applications and Case Studies (15 hours) that would
substantially include the following specific topics:
(A) Complex Property, Ownership and Market
Conditions;
(B) Deriving and
Supporting Adjustments;
(C)
Residential Market Analysis;
(D)
Advanced Case Studies.
(i) Courses on General Appraiser Market
Analysis and Highest and Best Use (30 hours) that would substantially include
the following specific topics:
(A) Real Estate
Markets and Analysis:
(i) Market Fundamentals,
Characteristics and Definitions;
(ii) Supply Side Analysis;
(iii) Demand Analysis;
(iv) Use of Market Analysis.
(B) Highest and Best Use
(i) Test Constraints;
(ii) Application of Highest and Best
Use;
(iii) Special
Considerations;
(iv) Market
Analysis;
(v) Case
Studies.
(j)
Courses on General Appraiser Sales Comparison Approach (30 hours) that would
substantially include the following specific topics:
(A) Value Principles;
(B) Procedures;
(C) Identification and Measurement of
Adjustments;
(D)
Reconciliation;
(E) Case
Studies.
(k) Courses on
General Appraiser Site Valuation and Cost Approach (30 hours) that would
substantially include the following specific topics:
(A) Site Valuation:
(i) Methods;
(ii) Case Studies.
(B) Cost Approach:
(i) Concepts and Definitions;
(ii) Replacement/Reproduction Cost
New;
(iii) Accrued
Depreciation;
(iv) Methods of
Estimating Accrued Depreciation;
(v) Case Studies.
(l) Courses on General Appraiser
Income Approach (60 hours) that would substantially include the following
specific topics:
(A) Overview;
(B) Compound Interest;
(C) Lease Analysis;
(D) Income Analysis;
(E) Vacancy and Collection Loss;
(F) Estimating Operating Expenses and
Reserves;
(G) Reconstructed Income
and Expense Statement;
(H)
Stabilized Net Operating Income Estimate;
(I) Direct Capitalization;
(J) Discounted Cash Flow;
(K) Yield Capitalization;
(L) Partial Interests;
(M) Case Studies.
(m) Courses on General Appraiser Report
Writing and Case Studies (30 hours) that would substantially include the
following specific topics:
(A) Writing and
Reasoning Skills;
(B) Common
Writing Problems;
(C) Report
Options and USPAP Compliance;
(D)
Case Studies.
(n)
Courses on Valuation Bias and Fair Housing Laws and Regulations (8 Hours) that
would substantially include the following specific topics:
(A) Understanding Real Estate Bias:
(i) Historical Context;
(ii) Contemporary Context.
(B) Federal Fair Housing and
Antidiscrimination Laws and Regulations:
(i)
Laws and Regulations;
(ii) Key
Legal Concepts.
(C)
Valuation Bias:
(i) Components of Valuation
Bias;
(ii) Recognizing and Avoiding
Valuation Bias.
(D) Case
Studies:
(i) Current Valuation Bias
Topics;
(ii) Best Practices for
Avoiding Valuation Bias.
(o) Courses eligible for approval as elective
courses for Qualifying Education. These courses are considered more appropriate
for Continuing Education than for Qualifying Education under these rules, but
can qualify as electives if they are at least 15 hours in duration and an exam
is required. Courses must focus primarily on advanced concepts/methods, a
specialized aspect of real estate appraising, or appraising one specific type
of property. Examples of course topics may include, but are not limited to the
following:
(A) Real Estate Investment
Analysis;
(B) Feasibility
Analysis;
(C) Condemnation
Appraising/Right of Way Appraising;
(D) Review Appraising;
(E) Mass Appraisal;
(F) Subdivision Analysis;
(G) Litigation/Testifying as Expert
Witness;
(H) Appraising
Condominiums;
(I) Appraising
Manufactured Housing;
(J)
Appraising Multi-Family Housing;
(K) Appraising Office Buildings;
(L) Appraising Farms;
(M) Appraising Land;
(N) Appraising Machinery and
Equipment.
(O) The Appraisal
Foundation's 15-Hour National USPAP Course or its equivalent
(4) Courses not
eligible for approval as Qualifying Education. These types of courses are
considered more appropriate for Continuing Education than for Qualifying
Education under these rules. Such courses focus all or a vast majority of their
instruction on only one comparatively narrow aspect of real estate appraising
and examine that one aspect in depth. These types of courses focus on topics
such as:
(a) Estimating Building
Costs;
(b) Estimating Accrued
Depreciation;
(c) Cash
Equivalency;
(d) Ellwood
Mortgage-Equity Analysis;
(e) Use
of Financial Calculators in Appraising;
(f) Valuation of Partial Interests.