Transcript Meeting Agenda

The Appraisal Practices Board
(APB): Its Role and Function
Gary P. Taylor, 2012 Chairman
Appraisal Practices Board
The Appraisal Practices Board (APB) is
responsible for identifying and issuing
opinions on Recognized Valuation Methods
and Techniques, on all appraisal
disciplines. The APB offers voluntary
guidance in various topic areas based on the
current demands of the marketplace.
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 Rationale for creation of the APB
 Many appraisers are not affiliated with a
professional organization
 Where can these appraisers find guidance
regarding changing market conditions (i.e.,
foreclosures/short sales)
The Appraisal Foundation is filling an
existing void in the marketplace.
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Recognized Valuation Methods and Techniques
Valuation methods and techniques are those
tools used to solve particular aspects of
appraisal assignments. They are the essential
steps used throughout the appraisal process.
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 History of the APB
 Approved by the Foundation Board of Trustees in
October 2009
 Seven members appointed in May 2010
 Organizational meeting held in July 2010
 Established its policies & procedures in July 2010
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 APB Structure
 Seven Members
 Multi-Disciplinary
Business Valuers
Assessors
Real Property Residential
Real Property Commercial
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 How is the APB similar from the other
Foundation Boards (the AQB and ASB)?
 Same size and compensation as the AQB and ASB
 Use of public exposure draft process
All work product of the APB is exposed to the
public for comment prior to adoption.
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 How is the APB different from the other
Foundation Boards (the AQB and ASB)?
 Use of outside experts (SMEs) in the drafting
process
 No Congressional authority
 Guidance provided is strictly voluntary
 Uses NO federal funds
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 Selection process for choosing Subject Matter
Experts (SMEs)
 Creation of a topic-related Statement of
Work/Project Description/Application
 Nationwide solicitation for applications
 Selection of 6-8 candidates by the APB
 Large pool of applicants for these positions
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 APB Topic Selection
 Prioritization of topics by the APB
 Periodic solicitation of stakeholders
 APB groups and ranks the topics based on the
needs of the marketplace
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 Drafting Process
 SME Panelists and APB Liaisons hold conference
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calls and in-person meetings
APB reviews and edits the proposed drafts
Public exposure
Review of public comments by the APB
Additional revisions by SME Panel, as needed
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 Drafting Process
 All work product of the APB is exposed for public
comment prior to adoption.
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The APB can include more than one valuation
methodology in its Valuation Advisories;
however, it is important to note that the
Board is not creating any new
methodologies.
The APB only offers guidance on existing
methodologies.
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 Valuation Advisories Completed To Date
 APB Valuation Advisory #1: Identification of
Contributory Assets and Calculation of Economic
Rents
 APB Valuation Advisory #2: Adjusting Comparable
Sales for Seller Concessions
 APB Valuation Advisory #3: Residential Appraising
in a Declining Market
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 Current APB Projects: Real Property
 Identifying Comparable Properties
 Appraising Green Buildings (Series of 3)
Background Competence
Appraising Residential Green Buildings
Appraising Commercial Green Buildings
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 Current APB Projects: Valuation for Financial
Reporting
 The Valuation of Customer-Related Assets
 Control Premiums for Financial Reporting
 Contingent Consideration
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 Four Important Facts About the APB
 Guidance offered is strictly voluntary
 No tax-payer funds are used to operate the APB
 The APB does not create new methodologies but
rather compiles existing methodologies
 The APB Valuation Advisories are available to all
free of charge at www.appraisalfoundation.org
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The Appraisal Foundation
Appraisal Practices Board
1155 15th Street NW, Suite 1111
Washington, DC 20005
www.appraisalfoundation.org
www.facebook.com/appraisalfoundation
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