What is an Appraisal Review, and Why is It Important?

Appraisals are critical for giving property buyers and sellers an exact property value. They enable them to get the best value for their sales or purchases so that no party is shortchanged in a deal. However, it can be necessary to get an independent review of what an appraiser did. 

The American Society of Appraisers (ASA) defines an appraisal review as “the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal.” Keep reading this post to learn more about appraisal reviews, their varied forms, and why they’re important. 

Types of Appraisal Reviews

Appraisal reviews come in two main forms – desktop or field. Which type is right for you will depend on the circumstances you have.

A desktop review requires extra review by another person. The reviewer could be a manager or another underwriter, as different appraisal companies have their unique procedures. Inversely, a field review requires another appraiser to tour the appraised property and its environs for a second analysis. Mostly, this review is exterior because all the other details regarding the property are available in the existing report.

Types of Appraisal Review Reports

All appraisal reviews require a report, which the client dictates based on their discussions with an appraiser. However, they must all conform to industry standards and meet customers’ needs. The reports can come in the form of:

• Form reports; 
• Checklists;
• Narrative reports; 
• Oral reports. 

When Is an Appraisal Review Necessary?

Appraisal reviews are critical and required under different circumstances. An appraisal review can benefit users in the following ways, among others:

• It helps the person who needs an appraisal enjoy a second opinion. This way, the user fortifies their trust in the appraiser’s work.
• A review measures a report’s credibility by establishing if it can support a pertinent development process.
• It helps a user test the logic in the methods and approaches the appraiser employed to ensure they are relevant to the task at hand.
• A review helps a lender manage risks by enabling them to perform due diligence before lending to their clients.
• This tool simplifies an appraiser’s results to customers with limited understanding of an appraisal or lack in-house appraisal capacity.
• An appraisal review can support litigation and dispute resolution issues.
• A review boosts an appraisal’s conclusions or demonstrates its possible loopholes.
• This tool is a confidence booster because it confirms if the appraiser gathered relevant data and examined them appropriately. It also helps a client know if the appraiser collected data logically in line with the information the report presents.

Contact an Appraisal Review Consultant at Allstate Appraisal Today

Appraisal reviews are critical decision-making and confidence-boosting tools. They come in different forms and relay results in various ways, though they should always help to support an existing appraisal or present a different opinion. Have you commissioned an appraisal but need an independent review? Look no further than Allstate Appraisal. Don’t hesitate to contact us today.