In response to the increased use of broker price opinions and other types of valuation methods other than appraisals, NAR has come out with what it calls its Responsible Valuation Policy statement.
It’s intended to provide a framework for the association’s volunteers, so when they need to make valuation-related policy that involves more than appraisals, they can do so in a more holistic way. Prior to the release of the statement and some internal structural committee changes, policies were looked at based on the type of valuation method.
If you’re interested in valuation policy issues, you might find this 4-minute video of interest. It’s intended to help explain how this internal revamping works.
The policy statement itself doesn’t weigh in on valuation methods. Rather, it says, in effect, whatever valuation method the situation calls for, there are minimum standards that have to be met: no conflict of interest, that they be done in accordance with NAR’s Code of Ethics, and so on.
In a nutshell, it’s a big-picture statement about meeting minimum standards regardless of what valuation method the situation calls for.
Access the Responsible Valuation Policy statement.
More from NAR’s Appraisal Insight blog.