Understanding PAREA: Practical Applications of Real Estate Appraisal

If you’re a trainee appraiser (or soon to be one), there’s a new path you can take to gain the experience hours necessary to earn an independent appraiser license. It’s called PAREA, and it stands for Practical Applications of Real Estate Appraisal. 

Unlike the traditional supervisor-trainee training model, PAREA is a fully virtual training path consisting of real-world appraisal simulation exercises. But while PAREA is designed to make the somewhat-daunting struggle of getting appraisal experience easier, there are many eligibility restrictions to note.  

Let’s take a closer look at PAREA.  

How PAREA Works 

The Structure of a PAREA Program 

In a PAREA training program, trainee appraisers complete simulated virtual training exercises to practice and master specific processes of real property appraisal. Here’s an example exercise.  

Over the course of the program, participants also complete real property appraisals that are compliant with the Uniform Standards of Professional Appraisal Practice (USPAP). This is a key requirement to gain experience hours. Upon starting PAREA, trainees are assigned a virtual appraiser mentor who provides guidance throughout the course and approves the trainee's appraisal log. 

After completing PAREA experience requirements – as well as earning the required course hours and passing the National Uniform License and Certification Exam – trainees are eligible to apply for an independent appraiser license. 

The Technology of PAREA 

PAREA uses virtual simulations to teach the craft of real property appraisal. PAREA trainees work on completing assigned tasks virtually with ongoing feedback from their appraisal mentor. These tasks might include: 

• Researching property documentation 
• Using the Multiple Listings Service (MLS) for property data verification 
• Evaluating the condition of property 
• Measuring room dimensions of properties 
• Identifying property characteristics  
• Performing neighborhood and market research 
• Determining the best valuation methodology 
• Analyzing comparable property sales 
• Determining a highest and best use of a property 
• Writing appraisal reports 
• Conducting appraisal reviews 
• Communicating appraisal findings to clients 
• Understanding and following USPAP 

Eligibility and Enrollment in a PAREA Program 

Enrolling in PAREA isn’t an option for every trainee appraiser. As of December 2023, 48 states have adopted PAREA fully, partially, or by reference in their appraisal laws, according to The Appraisal Foundation (TAF).  

Before enrolling in any PAREA program as a trainee, you need to be sure to check your state requirements first. Your state may have explicit guidelines for how you should gain experience as an appraiser and if PAREA is a valid option. You can find the website and contact information for your state’s appraisal regulatory office at this link. 

Differences Between PAREA and Traditional Supervisor-Trainee Field Training 

The primary difference between the PAREA appraiser training path and the traditional supervisor/trainee path is the format of training.  

In a PAREA program, you’ll gain experience in a virtual, simulated format. In the traditional supervisor/trainee model, you’ll gain experience in the field, working in-person, alongside an experienced certified residential or general appraiser.  

If you’re a trainee appraiser considering how you want to gain appraisal experience, it’s a good idea to ask yourself: How do I learn best?  

If you’re more comfortable learning virtually versus in the field and want a flexible, self-paced schedule, PAREA may be for you – if it’s accepted in your state. If you learn best by doing and want to hit the field running in a more traditional (and paid) trainee position, the supervisor-trainee path might be best for you.  

Getting Credit For PAREA Experience Hours 

The rules around substituting PAREA-earned experience for traditionally earned hours working for an appraisal mentor depend on your state. TAF’s Appraisal Qualifications Board (AQB) has provided states with the PAREA experience credit guidelines below. 

Source: TAF Appraisal Handout For States, December 2021 

How to Enroll in PAREA Appraisal Training 

Enrolling in a PAREA training program generally involves these steps. 

1. Complete your real property appraiser qualifying education. This involves earning 75 hours of foundational real property appraisal education and, in most states, an extra 4-hour supervisor-trainee course. 
2. Check if your state appraisal board has adopted PAREA for trainee appraisers and follow the state guidelines. PAREA may only be partially available in your state or not at all. Be sure to check the guidelines. 
3. If your state accepts PAREA, find an education provider and enroll in the program. As of December 2023, there are only a few PAREA programs available for trainees, with more expected to be approved in the near future, according to TAF. 
4. Complete your PAREA training and receive your experience credits. Be sure to check your state guidelines on substituting PAREA hours for hours earned working under a supervisory appraiser. 

After completing your program and the required education hours necessary for the license you’re working toward, you’re eligible to take the appraiser licensing exam. Then, you'll apply to become a fully licensed appraiser. 

Helpful Resources to Learn More About PAREA 

In many states, PAREA programs are still in the process of being fully established. So, it’s important to stay updated on your state’s regulations as well as TAF’s guidelines – especially if completing your experience hours is on the horizon. Bookmark the links below to stay informed. 

Helpful PAREA Links 

• PAREA – The Appraisal Foundation 
• PAREA Handout for States 
• AQB Real Property Appraiser Qualification Criteria Q&As – PAREA information begins on page 53 

Your Appraisal Career Starts with Great Appraiser Qualifying Education 

Gaining experience and building a rewarding career in appraisal starts with completing appraiser qualifying education. Now, you can do it with The CE Shop! Learn the fundamentals of real property appraisal with our engaging live-online USPAP and self-paced appraisal courses. You'll be fully prepared to gain experience in the appraisal, master your licensing exam, and become a successful independent appraiser.