Edited by Joseph Garnett, Jr. – Written by Mike Wolfe
Becoming an MAI appraiser is no easy task. The MAI designation means that an individual is affiliated with the Appraisal Institute, a highly esteemed worldwide organization for real estate appraisers. Designated members of the Appraisal Institute, or MAIs, have to jump through several hoops to prove their knowledge and sound moral character to get the designation, including fulfilling specific educational and professional requirements. Here, we’ll break down all of the different elements to becoming an MAI appraiser.
Getting to be an MAI-Designated Appraiser: Education Requirement
First, an appraiser must have extensive real estate knowledge and an in-depth understanding of the appraisal process. To prove this knowledge, an appraiser must have:
- An undergraduate degree: All MAIs must have an undergraduate degree. This degree can be in any subject, but it must be from a fully accredited four-year university.
- A passing grade on 13 different examinations: MAIs must pass a series of rigorous tests. These exams cover advanced income capitalization, advanced market analysis, HBU, and quantitative analysis. These exams include a total of 400 hours of classroom instruction and demonstrate that an appraiser has a comprehensive knowledge base.
- A passing grade on the General Comprehensive Exam: In addition to the 13 exams mentioned in the above point, all MAIs must also pass a General Comprehensive Examination. This intense two-day, four-part modular exam is notoriously challenging, as the scope of the topics examined is quite broad. The exam can cover pretty much anything in the Appraisal Institute’s required examinations, current appraisal literature, and the Appraisal Institute’s Bylaws and Regulations, which means that candidates must be thoroughly prepared.
Getting the MAI: Experience Requirements
To become an MAI-designated appraiser, candidates need more than just comprehensive, in-depth knowledge. They also need professional experience. To receive the designation, an appraiser must have credit for a minimum of 4,500 hours of specialized experience. The appraiser accrues the background over a minimum of three years. The experience ensures that those who receive the designation have a considerable amount of experience under their belts. Lastly, to prove their experience, candidates must also complete a demonstration report. This report ensures that they can fluidly write, substantiate, and defend a value proposition. Anyone with an MAI designation isn’t just an expert at the technical aspects of appraisal but also knows how to protect that value, a crucial skill.
The Value of an MAI in a 170 Exchange
When it comes to the 170 exchange, it can be incredibly advantageous to have an MAI on your side. An appraisal is a key part of the process. Getting a high appraisal is key to maximizing the value of the transaction. These experts have the experience and knowledge necessary to succeed in even the most stressful situations, helping ensure that you can get the right appraisal for your property and maximize your return.
Nick Chop’s full blog post can be found here.