American Institute Of Real Estate Appraisers (AIREA)

Definition of "American Institute of Real Estate Appraisers (AIREA)"

Robin Ungaro real estate agent

Written by

Robin Ungaroelite badge icon

Coldwell Banker Residemtal Brokerage

The American Institute of Real Estate Appraisers, in short, the AIREA, or the Appraisal Institute as it is known nowadays, is an institute that aims to advance professionalism in the real estate industry and adherence to a code of ethics. Their goal is to promote global standards, practices, and methodologies through a professional evolution of the global real estate industry.

The Appraisal Institute is recognized worldwide not only for the mission statement above but also for its focus as a leader in educational programs for valuation professionals. With over 17,000 professionals of the institute in around 50 countries across the world, the institute promotes equal opportunities, non-discrimination, and professionalism that adheres to federal, state, and local laws.

History of the American Institute of Real Estate Appraisers

Initially, two branches dealt with appraisers’ role in the US: the American Institute of Real Estate Appraisers (1932) and the Society of Real Estate Appraisers (1935). The two branches merged in 1991, and the Appraisal Institute was formed. With a total of 89 years of experience, the Appraisal Institute continues its educational and designation programs for all its members. At the same time, they’re advocating for their industry as a global leader in the valuation profession.

The Appraisal Institute leads the profession towards fostering and promoting the practice of the highest standards. Their work is visible through their peer review process, the educational programs they manage, the professional research, and countless published works.

Members and Designations

Becoming a Designated member of the Appraisal Institute requires an individual to meet a rigorous set of qualifications based on soft and hard skills, experience in the field, and an ethical code. The reason for these strict demands is the role a designated member could attain in relations with government agencies, lenders, corporations, courts, investors, and individual owners. The role of a designated member is to guide any entity’s decision in real estate valuations. The following are the designations given by the Appraisal Institute and their responsibilities:

MAI provides opinions related to value, consulting, evaluation, advice, and review regarding any investment decisions for vacant land, residential, commercial, agricultural, and industrial properties.

SPRA provides opinions related to the review and value of industrial, agricultural, commercial, residential, and vacant land properties.

SRA provides residential real estate services, including evaluations, opinions related to value, advice regarding investments, and consulting.

AI-GRS review appraisals of commercial, agricultural, industrial, residential, and vacant land.

AI-RRS review residential appraisals.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Agreement between the lessee and lessor specifying the lessee's rights to use the leased property for a given time at a specified rental payment. As rental payments are made, rent expense ...

Financing of a home based on how much equity the homeowner has in it. The interest rate is typically a variable one. ...

Subordinate neighborhoods that are tied to an urban area economically. For example, office buildings in a city are the workplace for residents in surrounding communities. ...

The meaning of direct costs implies such expenses that you can connect straight to a particular goods’ or service’s production, manufacturing, and preparation. As opposed to ...

The appraisal approach is used to estimate the value of an asset, based on various factors to reach the closest educated guess of the asset. While an appraisal approach does consider the ...

An insurance company or underwriter. An insurance policy is a legal instrument assuming the risk of loss for stated perils to real property in exchange for insurance premiums paid. ...

Measure of the annualized compound growth of a real estate investment. ...

Bank financing to a homeowner based on his dollar equity in the home. The interest rate typically fluctuates such as being based on the change in the prime interest rate. Interest expense ...

Use of borrowed funds to enhance expected returns. It is anticipated that the investment will earn a return exceeding the after-tax cost of borrowing. ...

Popular Real Estate Questions