The laws that control how appraisers are selected vary by state, and by country.
In the United States, the Appraisal Foundation, a non-profit organization, sets the standards and guidelines for the appraisal profession. The Appraisal Qualifications Board (AQB) has established the minimum education, experience, and examination requirements for state-licensed and certified appraisers.
Each state has its own regulatory agency that oversees the appraisal profession, and the laws and regulations can vary from state to state. The Appraisal Subcommittee (ASC) is a government organization that is responsible for supervising the appraiser regulatory programs of all states, the District of Columbia, Guam, Puerto Rico and the Virgin Islands. The ASC is responsible for enforcing the federal laws, regulations, and guidelines that apply to the appraisal profession.
In addition to the federal laws, there are also some state laws that regulate how appraisers are selected, such as the lender's requirement to select an appraiser from a state-approved list. Some states also have specific regulations that govern how appraisers must be selected, such as a rotation system, or a random selection process.
At the federal level, the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and its implementing regulations require that federally regulated financial institutions must use appraisers who are licensed or certified in the state where the property is located.
Keep in mind that laws and regulations can change over time, and it's best to check with your lender and the state regulatory agency for the most current information.
In Idaho, the Appraisal Management Company (AMC) Registration and Certification Act, became effective on January 1, 2018. The Act requires that all AMCs register with the Idaho Real Estate Appraisal Board (IREAB) and follow certain requirements. Among those are:
The Idaho Real Estate Appraisal Board (IREAB) is responsible for enforcing the laws and regulations that apply to the appraisal profession in Idaho. They are the regulatory agency that oversees the appraisal profession in the state. The IREAB is responsible for enforcing the state laws, regulations, and guidelines that apply to appraisers, AMC and appraisal management companies in Idaho.
It's important to note that Idaho is a state that requires that real estate appraisers who work in Idaho to be licensed. They must meet certain qualifications such as education, experience, and pass an examination, to get the license. In addition, they must also complete continuing education requirements and maintain professional liability insurance.
If you are a buyer or a seller, you should check with your lender, real estate agent and the regulatory agency to understand the laws and regulation in Idaho, this will help you be more informed and prepared when a home appraisal is ordered.
If you are a buyer or a seller, you may request a reappraisal of a property if you disagree with the value that was determined by the initial appraisal. However, it's important to note that there may be certain circumstances and qualifications that must be met in order for a reappraisal to be conducted, and it's not guaranteed that it will be granted.
If you are the buyer, and you believe that the initial appraisal is too low, you can request a reappraisal, but you'll have to make sure that you have a valid reason for requesting it. For example, if you found new information, such as recent comparable sales or improvements that were not included in the initial appraisal, you may be able to request a reappraisal.
If you are the seller, and you believe that the initial appraisal is too high, you may want to consider providing the appraiser with additional information that supports a higher value of the property, such as recent comparable sales data or information about recent upgrades.
Keep in mind that if you are requesting a reappraisal, you'll need to do it in writing, and submit your request to the lender, the regulatory agency, or the appraiser company that did the initial appraisal. They will then review your request and determine if a reappraisal will be conducted. In most cases, the lender will be the one who makes the decision and it depends on the reason for the request and their policies.
It's worth noting that it's not a common practice for lenders to order reappraisals, and usually, they will only do it if there's an obvious mistake in the appraisal or some new information that can affect the value of the property. Moreover, It's usually a buyer's option to cover the cost of reappraisal, it could be an added expense that should be considered.