Appraisal review is an objective exercise measuring appraisal work against established standards and logic. USPAP defines 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. The subject of the review may be all or part of an appraisal report or a review report.” [USPAP Standard Rule 3].
The Appraisal Reviewer is not a facilitator or administrator and has no personal relationship with the underlying appraiser, the parties involved, the transactions involved and no relationship to the property that was the subject of the original report. The Reviewer is required to prepare a separate report describing the scope of work performed, and must include the same basic elements as found in a standard appraisal report including intended use, intended user, etc. The Reviewer looks at conformity to regulations, standards and objectively analyzes the methodology and logic contained in the appraisal report. The results expressed in the review report must be followed by a signed certification statement. Reviewing appraisals critically requires the ability to temporarily suspend notions of absolute right and wrong and to intellectually inhabit grey areas that does not allow for simple “yes” or “no” answers.
"The reviewer must have the knowledge and experience needed to identify and perform the scope of work necessary to produce credible assignment results. Aspects of competency for an appraisal review, depending on the review assignment’s scope of work, may include, without limitation, familiarity with the specific type of property or asset, market, geographic area, analytic method, and applicable laws, regulations and guidelines.” [USPAP Standard Rule 3-1(a)].
Appraisal management appraisers are professionals who participate in managing multidiscipline appraisal practices. Such professionals have responsibilities for:
- Technical review of all types of appraisals
- Coordinating and training appraisers from various disciplines
- Estimating fees for potential engagements
- Developing engagement plans for new assignments
Appraisers who function in this capacity have a broad understanding of the appraisal process and standards that are practiced by one or more appraisal disciplines. This understanding must be demonstrated in real property, machinery and technical specialties and business valuation. Familiarity with the proper application of valuation concepts and methodologies for many different types of property rights is essential to advancement in this field.