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1050 Can You Be Competent in an Area You Have Never Appraised in Before?

The "Competency Rule" comes up a lot, but what is it? What does it mean to be geographically or assignment competent? Tim Andersen, The Appraiser's Advocate, joins Dustin to discuss.

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A few summaries of 2025 news articles relevant to appraisers and the question of appraisers being (or needing to be) competent in areas they haven’t appraised in before - or how competency/geographic familiarity is handled.

• 1. Steven M. Shockley v. Indiana Real Estate Appraiser Licensure and Certification Board (July 24, 2025)

     • What happened: Appraiser Steven Shockley was accused by the Indiana Real Estate Appraiser Licensure and Certification Board of professional incompetence and violations of USPAP (Uniform Standards of Professional Appraisal Practice) in multiple eminent domain appraisal assignments. Justia Law

     • Key issues about unfamiliar area/expertise: Among the accusations was that his value opinions were “incredible,” “unreasonable,” or lacked credibility. While the case isn't exclusively about an appraiser working in a completely new geographic area, it raises the issue of whether the appraiser had sufficient competency to support conclusions in particular appraisals. Justia Law

     • Outcome or status: The court affirmed some procedural rulings and let the Board proceed with its process; the case highlights how boards may challenge appraisals on grounds of methodology and professional standards. Justia Law

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  2. “Assessing Competency” — ASA Blog, March 2025

     • What it discusses: This piece examines how competency under USPAP works in practice, especially when assignments present unfamiliar conditions (for example, property types or locations the appraiser has not appraised before). It emphasizes that the appraiser must recognize their limits, disclose lack of experience if needed, acquire the knowledge necessary (through research, mentoring, etc.), and/or decline assignments if credible performance can’t be assured. www.appraisers.org

     • Relevance: This gives guidance on appraisers taking on assignments in new areas (geographical or in property-type) and what steps are expected for competence. It clarifies that USPAP does not demand perfect knowledge up front, but does require capacity and due diligence. www.appraisers.org

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  3. “Appraising: Competency: More Than Just Geographic” — HousingWire / The Reverse Review

     • What is covered: This article discusses that under USPAP, an appraiser must either (a) already be competent, (b) acquire competence before or during the assignment, or (c) decline or withdraw. Geographic competency is important but only one factor. It warns that some appraisal management companies (AMCs) try to enforce arbitrary proximity rules (e.g. distance from subject property) rather than assess whether an appraiser truly has or can acquire competency. HousingWire

     • Implications: Even if an appraiser hasn’t appraised in a particular neighborhood or county before, what matters is whether they can understand its market, comparable sales, physical/historical/local factors, etc. Geographic competence is less about strict physical distance and more about relevant knowledge. HousingWire

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  4. Law / Regulation: Connecticut’s adoption of PAREA and practical applications

     • What changed: Starting May 2025, Connecticut updated its appraisal regulations so that provisional appraisers can qualify to sit for the residential appraisal licensing exam either by accumulating the required supervised/apprentice appraisals or by completing the Practical Applications of Real Estate Appraisal (PAREA) program plus three documented appraisals (including at least one “complex residential property”). NEREJ

     • Why it matters for competency in unfamiliar areas: The PAREA program is designed to broaden practical training, including exposure to a range of property types (including complex residential) which could include those outside what an appraiser has done before. This is a formal mechanism to ensure competency even when prior direct experience is lacking. NEREJ

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  5. Appraisal Institute / Appraiser Qualifications: Modernizing Experience Pathways

     • What is happening: The Appraisal Institute has supported changes (via comments to the Appraiser Qualifications Board) that broaden what counts for required appraisal experience, including:

     • Allowing up to 25% of required experience to come through verified “foundational knowledge” activities.
     • Accepting relevant government or international appraisal experience.
     • More flexibility for supervision arrangements, etc. Appraisal Institute

     • What that says about competence in new areas: These shifts suggest recognition that appraisers may need to demonstrate competency in somewhat novel territory (new markets, property types, etc.), and that experience can be built through diverse, non‐traditional paths — as long as standards for competence are satisfied. Appraisal Institute