Certified Residential Appraiser Practice Exam

In which decade did the first organized groups of appraisers emerge in the United States?

1. 1920s

2. 1930s

3. 1940s

4. 1950s

The correct answer is: 1930s

The emergence of the first organized groups of appraisers in the United States occurred in the 1930s. This period was significant in the development of formal appraisal practices, largely due to the regulatory and economic changes brought about by the Great Depression. During this time, there was a growing need for standardization in property valuation to support various government initiatives, including the establishment of the Home Owners' Loan Corporation (HOLC) and the Federal Housing Administration (FHA). The Great Depression spurred the need for appraisals to ensure that properties were valued fairly and accurately, which led to the formation of professional associations aimed at standardizing appraisal practices and providing training. This paved the way for the establishment of the Appraisal Institute and other similar organizations that emerged in later decades. Hence, the 1930s are recognized as the foundational decade for organized appraisal practice in the United States.