A review appraisal is a critical assessment of another appraiser's work product. Lenders generally require review appraisals for many of their appraisals to check on the accuracy of the reported data and adherence to the Uniform Standards of Appraisal Practice and any supplemental standards required by the lender. A review appraisal can also be ordered by any non-lender that made have the need to reflect upon the appraisal of another appraiser.
When reviewing another appraiser's work, we realize that our opinions could have far reaching effects upon his/her reputation. In conducting our reviews, we generally hold the appraiser accountable for such items as would be expected by his peers. As such, minor discrepancies may or may not be mentioned, depending upon the level of detail of our report. The standards we apply to appraisal reports under review are the same standards we would expect to be applied to our appraisal reports being reviewed by our peers.
There are four levels of appraisal review:
1. Desk review. An appraisers report, along with all supplemental data will be reviewed for accuracy. Data sources indicated by the appraiser will be checked for accurate reporting. Adjustments to the data will be checked for overall reasonableness and an opinion will be reached regarding a degree of acceptability of the report. Our review report will consist of simple yes or no answers to a host of questions regarding the report. One of the things that can not be determined from a desk review is the condition of the subject property, the specific neighborhood, actual measurements and amenities. If further investigation is required we would recommend an assignment upgrade to a
2. Field review. We do all the things required for the Desk Review and expand the yes and no format with narrative comments and any reason for our agreement or disagreement with the appraisal report under review. We will visit the subject property and view the property from the street. We will view the subject’s immediate neighborhood as well as the appraiser’s comparable sales. If necessary, we will provide additional comparable sales and a value estimate based on the exterior inspection from the street of the subject property. We do not measure the subject property or assess the condition and amenities hidden from a street view of the property. If we have extreme concerns of the condition, size or amenities included we would suggest an
3. Enhanced Field Review. This product is better than obtaining a second appraisal on the subject property. If a second appraisal is ordered and the appraisals differ in final value by more than 5%, one would not know which appraiser to believe. The enhanced field review would not only give a detailed critique of the original report, it would take a detailed look at the subject property and provide a supportable opinion of value in the same detail as a second appraisal.
4. Forensic Appraisal Review (click the link)