Appraisal Review
Appraisal review is the second or third technical, unbiased critique of a surrendered appraisal report. This appraisal review of an appraisal ensures three qualities:
- 1. That the original appraisal complies with Federal guidelines as set forth in USPAP (Uniform Standards of Appraisal Practice. USPAP criterion regulates the appraisal and the appraiser!
2. That the appraiser uses the correct valuation methodology.
3. That the original appraiser reached a Fair Value with accurate facts.
Who needs appraisal review?
- • Client(s) that has/have conflicting appraisals.
• Clients with separate appraisals that are destined for litigation.
• Financial Institutions that need to comply with Federal Reserve regulations.
• Court imposed appraisal review.
• Any appraisal that will be questioned in court.
• Property to be acquired in Federal-aid projects or programs.
• Mergers, Acquisitions, Sale of Business, Divorce, Real Estate transactions and Eminent Domain.
What kind of Appraisal Review is needed?
- A. Technical Appraisal Review is an exhaustive full review appraisal of the property. This appraisal review starts from scratch onsite of the properties. A full appraisal that is compiled independently and then compared to a previously submitted appraisal by a different appraiser. The appraiser must be USPAP 2008 Compliant, (recently passed the new USPAP government test and qualified by education and or experience).
B. Desk Appraisal Review can be prepared using the data from the existing appraisal or new data that the review appraiser collects from his or her normal valuation sources. The desk appraisal then compares values with the original appraisal. This appraisal review is the most economical.
C. Field Appraisal Review requires the appraiser to physically examine the real and or personal property and then compare their findings with the original appraisal.
What to expect from an Appraisal Review
The appraisal review must be executed by a Professional Senior Appraiser that is, Experienced, Highly Qualified and Accredited by 2008 USPAP Standards. The appraisal review is not an exercise to arrive at the same valuation, instead the appraisal review is a verification that the facts are true in the original appraisal and that in using said facts, a true market reliable “Fair Value” estimate was given in the original appraisal. The appraisal review is the quality control element that is critical in the valuation process. The review appraiser will validate if the appraisal report(s) contain proper documentation, factual information and conclusions that are properly supported with the accepted valuation methodology. The reviewer will confirm that mathematical errors are present or absent, the law has or has not been adhered to, and that a comprehensive examination of the original appraisal has been completed in accordance with appraisal review techniques, standards and principles.
Durkin Valuation Associates are professional Senior Appraisers with a combined 70 years of valuation. Our appraisers include two attorneys, one PhD, two MAs and an instructor for the Federal USPAP Test. We are more than competent to do your appraisal review, any appraisal needs including Expert Appraisal witness testimony. Call (617) 720-0332 or email below.
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