President's Message
Preparing for the Future: CEO Transition in Motion
We are about to open a new chapter for the future of the Appraisal Institute. Our Interim CEO has expressed his desire to embark on a new chapter of his own – a well-deserved retirement - and so we are preparing to begin our search for our new CEO. John has done a great job and his contributions to our efforts to modernize educational offerings and technology are greatly appreciated. I am not the only one who will say that John is a pleasure to work with, and his openness and wry sense of humor will be sorely missed.
While we laying the groundwork to start the search for a new CEO, the CEO selection process may take several months to complete. But I am pleased to say that John is willing to lead until the new CEO is on board.
Please join me in thanking John for all he has done and for his continued commitment to us. We are embarking on an exciting journey, and I am proud to be a part of this transition.
The New URAR and the Changing Residential Landscape
Appraisers across the country have shared their concerns with me about the significant shifts happening in residential appraisal. Appraisal waivers, hybrid appraisals, and challenges with appraisal management companies remain pressing issues. Now, another major change is on the horizon—the rollout of the new Uniform Residential Appraisal Report (URAR) and the updated Uniform Appraisal Dataset (UAD).
The Appraisal Institute has been actively engaged in shaping these updates. Our leadership and staff played a key role in advisory groups to ensure that the new URAR benefits appraisers. This updated report includes several improvements designed to streamline the appraisal process and make it more appraiser-friendly—but it’s critical that you understand these changes now, before they take effect.
To help you prepare, I’m excited to introduce the Appraiser’s Guide to the URAR, the first in a series of seminars dedicated to helping you navigate these updates. This course—offered both in-person and online—will walk you through the redesigned data fields, common reporting pitfalls, and best practices for compliance. If you perform appraisals for mortgage loans sold to Fannie Mae or Freddie Mac, this course is essential to your success.
Preparing for Business Success
Adapting to the new URAR is just one piece of the puzzle. To help you refine your valuation methodologies and strengthen your business practices, we are also developing two companion courses—short, 3-4 hour sessions designed to reinforce key takeaways from the seminar. These courses will help you meet new requirements, improve efficiency, enhance report quality, and stay competitive in an evolving industry.
Early adopters of these changes will have a distinct advantage. I know the pressures residential appraisers face—tight deadlines, fee compression, and increasing client demands. That’s why we designed this seminar series to make your transition as smooth as possible. The Appraiser’s Guide to the URAR is your first step toward future-proofing your career.
Why Real Estate Agent-Appraiser Communication Matters More Than Ever
All of us, as buyers, sellers and appraisers of residential real estate have been trying to understand the effect the recent settlement involving the National Association of REALTORS® and various home sellers will have on us. One major outcome of this agreement is that Multiple Listing Services (MLS) can no longer display offers of compensation. This change has major implications for appraisers.
The Changing Role of Concessions in Transactions
Traditionally, appraisers analyzed seller concessions, such as closing cost assistance or repair credits, using MLS data. Now that this information is no longer consistently reported, appraisers must rely more on direct conversations with real estate agents to get a complete picture of each transaction. Many MLSs removed the concessions field complicating the appraisers’ search for accurate details and adding time to the assignment.
Some concessions appear in the contract, but others occur outside of it and may go unnoticed unless appraisers ask about them. Clear and open communication with real estate agents is now more critical than ever.
The Impact on Appraisals
Credible appraisals require comprehensive data. Without full transparency about concessions, appraisers may struggle to make appropriate adjustments, which could affect loan approvals and transaction closings.
Atypical concessions pose an even greater challenge. While standard commissions are already factored into a home’s sale price, undisclosed concessions, in the form of atypical commissions or other concessions can distort market value. Without access to this information, appraisers face a more difficult valuation process.
The Need for Real Estate Professional Education and Cooperation
Real estate professionals must recognize the importance of responding to appraisers’ inquiries. NAR and other industry groups should encourage agents to prioritize communication with appraisers to ensure accurate property valuations and smooth transactions.
Agents should prepare to discuss concessions candidly and understand that answering an appraiser’s call isn’t just a courtesy—it’s a necessary step to ensure fair and credible valuations, benefiting both clients and the real estate market.
Strengthening the Real Estate Agent-Appraiser Relationship
Although the way concessions are tracked has changed, the appraisal process itself remains the same. The difference is that now appraisers must take a more proactive approach to gathering critical data.
By strengthening relationships with real estate agents, we can maintain the integrity of the valuation process despite these shifts. Moving forward, education and collaboration will be key. Real estate professionals and appraisers must work together to promote transparency, accuracy, and efficiency—ultimately benefiting buyers, sellers, and the market as a whole.
The Appraisal Institute held a Trending Topics Thursday webinar on this subject when the settlement was announced. A free recording is available here to learn more from colleagues.
Until next month,
Paula K. Konikoff JD, MAI, AI-GRS