The Appraisal Foundation has published some very helpful information on their website (click here) regarding the effectiveness of the examinations used for state licensing and certification purposes.
The AQB made minor enhancements to the Criteria over the years, but the revisions that will become effective on January 1, 2008, significantly increase the hours and the specificity of education required to become a state licensed or certified appraiser. Appraisal education, beginning in 2008, will require, for the first time that the total hours be attributable to specific topic areas, known as a Required Core Curriculum. And each educational topic area in the Required Core Curriculum requires successful completion of an exam.
Since specific appraisal topics will be taught and tested within the education requirement, the 2008 state licensing and certification examinations can focus on a candidate’s ability to apply the knowledge learned rather than simply testing a candidate’s ability to recall information learned in coursework.
State appraiser licensing and certification examinations offered prior to January 1, 2008, essentially test a candidate’s ability to recall information learned in qualifying educational offerings. The National Uniform Licensing and Certification Examinations offered as of January 1, 2008, will test a candidate’s ability to apply the knowledge (and possibly experience) they have obtained.
This difference may be best illustrated by looking at examples of the type of questions that could appear under each exam (Click Here)
Pre-2008 Exam Example
1. The anticipated income from all operations of the real property after an allowance is made for vacancy and collection losses is known as:
A) Gross Income
B) Net Income
C) Effective Gross Income
D) Residual Income
2008 Exam Example
An appraiser is asked to appraise an apartment complex consisting of 120 units broken down as follows:
Thirty (30) 1-bedroom units, renting for $500 each
Sixty (60) 2-bedroom units, renting for $750 each
Thirty (30) 3-bedroom units, renting for $1,000 each
The complex has historically had a vacancy and collection loss expense of 3% and operating expenses/replacemen
1. What is the Potential Gross Income for the complex?
A) $75,000
B) $90,000
C) $87,300
D) $56,745
2. What is the Effective Gross Income for the complex?
A) $75,000
B) $90,000
C) $87,300
D) $56,745
3. What is the Net Income for the complex?
A) $75,000
B) $90,000
C) $87,300
D) $56,745
As can be seen above, candidates taking a state licensing or certification exam in 2008 will be required to not only know things, but to also know how to do things.
Additional Resources:
Appraisal Foundation Announces Availability of 2008 Criteria Implementation DVD Video Stream : Appraisers can now view the 3-hour DVD produced by the Appraiser Qualifications Board (AQB) by visiting the foundation's website. Listed at this link are the different chapters of the Implementation of the 2008 Real Property Qualification Criteria video.
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