An appraisal review can be a technical review, desk review, or field review of an appraisal by an experienced, competent, qualified review appraiser. Since an appraisal review is a key quality control element in the credit or risk decision process, the importance of having an experienced, qualified, and knowledgeable appraiser performing reviews cannot be overemphasized. It is critical that anyone in the role of a reviewer be qualified to do so.
So, how do you know a reviewer is qualified to review appraisal reports? A good place to start is by examining their appraiser state licensing or certification, years of experience, the general reputation of the appraiser, appraiser’s level of education/continuing education, and any experience in appraising or reviewing the property type.
A review appraiser should be a thoroughly qualified appraiser who is completely familiar with the type of property being reviewed and the techniques required to evaluate the real estate. Additionally, the review appraiser must be completely familiar with a client’s appraisal policy and other relevant requirements, as well as applicable federal and state laws. It is very difficult for an individual who does not meet all of these qualifications to provide an appropriate and thorough appraisal review.
The review appraiser has many responsibilities in the evaluation of an appraisal report. The first involves reviewer objectivity. An appraisal is an estimate of value based on certain valuation related information and conclusions. It is the reviewer’s responsibility to determine if an appraisal report contains factual information, proper documentation, sound methodology, and appropriately supported conclusions.
The review appraiser should not be substituting his or her judgment for that of the appraiser. When a review appraiser finds analytical and/or factual deficiencies in the appraisal report, the review appraiser should first ask the appraiser to consider making the requested corrections, considerations, or enhancements in the appraisal report.
The general purpose of an appraisal review for most clients of Valuation Management Group is to ensure that the estimate of market value is reasonably supported with an acceptable appraisal. An appraisal review is not only an arithmetic or grammatical review of an appraisal report but also a comprehensive technical examination of the appraisal, as reported by the appraiser.
Valuation Management Group’s Quality Assurance Review staff has an average of 20 years experience as appraisers or reviewers and, as such, has a very deep “bench strength” of knowledge and experience from which to draw upon for any type of appraisal issue for both commercial appraisal reviews and residential appraisal reviews.
As a part of the appraisal management services provided by Valuation Management Group, each order includes a technical review. We also offer appraisal “review only” services for clients who handle the assignment process internally. Our qualified staff handles residential and commercial review assignments in a timely, professional manner. Our quality assurance team reviews approximately 50,000 appraisals a year, giving them exposure to and experience in all types of residential and commercial appraisals nationwide.
Valuation Management Group is a national, full service appraisal management service company that manages the appraisal process for community banks, mortgage bankers and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.