By definition, an appraisal review is the evaluation of all essentials of the appraisal findings of another appraiser. The purpose of carrying out an appraisal review to confirm if the appraisal findings have the required data available. It also helps in deciding if the logic and reasoning applied to the data from the appraisal process culminate in a reasonable conclusion.
These reviews are also reports which comment on the apparent accuracy and completeness of an appraisal report. They are normally completed most of the lending establishments, but there are others like the lawyers and attorneys can find reviews better than starting out on a new appraisal. The cost for an appraisal review is not as expensive as the cost for a new appraisal. The main role of some appraisal reviews is to make sure they comply with some technical rules and also to confirm the market data analysis appropriateness. It also helps to emphasize on value estimate. Appraisal reviews are normally customized to befit the needs of a client. Appraisal reviews can be presented either as a checklist or a narrative.
There are three types of appraisal reviews. They are the desk appraisal review, which is prepared without or with valid data to authenticate the appraisal report. Field appraisal review is where the review appraiser checks on the property and, finally, the full appraisal review where the appraiser collects data independently. Ideally, a review appraiser should have qualifications that are at least similar to the ones of the review appraiser who did the job. However, there is some provision which can be used as guidelines for the expectations of appraisal reviews.
Let us now learn some of the basic functions of an appraisal review. We have seen that it is an analysis of all factors of a review appraisal report of another review appraiser. The purpose of the appraisal review is to make certain if the reviewed appraisal report has available all the pertinent details. To determine if the provided factual data is logical and if it is connected to the findings made by the review appraiser. To decide if the review appraisal is in conformity with the approved review appraisal techniques and practices. Finally, the purpose of a review appraisal is to determine if the logic and reasoning applied on the date in the appraisal process has a logical conclusion result.
An appraisal and an appraisal review have very huge significant differences. The role of a review appraiser is not to carry out appraisals on a property; instead, their role is to evaluate the findings from the appraisal report. There is a distinct variation between being impartial on the logic and reasoning of an appraiser and replacing one’s subjective judgment when you are the reviewer.
Appraisal reviews should be an objective evaluation of all the work done by the other appraiser. This means that anything less than the review of the whole work cannot be passed as an appraisal review. If the analysis is done on some sections of the appraisal, the reviewer must know that the other areas have not been reviewed. If the review is limited, then the whole report should not be concluded from the findings made on some sections of the review.