Appraiser Advisories

Appraiser Renewal and USPAP Audit

The Division of Real Estate wants to take this opportunity to remind all active licensed and certified appraisers of their continuing education requirements.

Board of Real Estate Appraiser Rules Effective January 1, 2024

On November 2, 2023, the Colorado Board of Real Estate Appraisers (“Board”) held a rulemaking hearing to update and adopt rules for real estate appraisers and appraisal management companies based upon the mandatory rule review required by Senate Bill 14-063 (Mandatory Review of State Agency Rules).

2023 Legislative Summaries For Licensees

The Colorado General Assembly Legislative Session adjourned on May 9, 2023. During the session, many new bills directly or indirectly affecting real estate and the practice of real estate were passed and became law. Understanding these laws, whether you are a real estate professional or simply an interested member of the public, may be helpful. The Division of Real Estate has prepared the following legislative summaries to aid you in better understanding the latest changes. Final language of these acts and other information about the Colorado General Assembly can be found on the Colorado General Assembly’s website at:

May 22, 2023: Appraiser Practice Advisory-Appraiser Quality Monitoring

It will benefit Colorado appraisers to be aware that Fannie Mae has established standards by which Fannie Mae promotes quality in the loan origination process. These standards, referred to as Appraiser Quality Monitoring (“AQM”) are designed to “improve appraisal quality and strengthen the appraisal profession by identifying patterns of quality issues in appraisal reports and providing feedback directly to individual appraisers.”

What is an Appraisal Gap on a Home Purchase?

An appraisal gap is the difference that occurs when a buyer's offer is higher than the actual appraised value of the property (which is usually the amount the bank will loan for the home) that they are contracting to purchase. It is an issue that is currently being experienced in the hot and highly competitive Colorado real estate market and experienced by buyers where there are many more prospective purchasers than inventory that is available for sale, and where bidding wars and other aggressive purchase offer tactics are being used.

Adjustment Support and USPAP: An Appraiser Advisory

The Division of Real Estate is releasing the final installment of its series of appraiser licensee advisories designed to achieve better compliance. This final installment gives licensees the opportunity to better understand how to complete a successful appraisal by supporting adjustments properly.

Understanding the Appraisal Cost Approach

In this third installment of a four-part advisory series, licensees will learn how to be compliant with the “cost approach.” Take 5 minutes to review the advisory below so that you can be compliant in your appraisal practice and avoid any violations and discipline for failing to comply with the appraisal cost approach.