What is an Appraisal Review
An appraisal review is a process of evaluating the accuracy, reliability and impartiality of an appraiser's report or opinion of value. It is typically conducted by a senior appraiser or a professional review appraiser who checks the appraiser's work to make sure it complies with industry standards and regulations. The purpose of an appraisal review is to ensure that the appraisal report is credible, supported by appropriate data and analysis, and suitable for its intended use.
Who Should Request a Review
Anyone who wants to verify the quality and accuracy of an appraisal report can request an appraisal review. The following parties may benefit from an appraisal review:
Lenders: Banks and other lending institutions may request an appraisal review to ensure that the value of a property is accurately represented for loan purposes.
Investors: Real estate investors may request an appraisal review to verify the value of a property before making a purchase.
Property Owners: Property owners may request an appraisal review to dispute the value of their property that has been assessed for tax purposes.
Regulators: Government agencies and regulators may request an appraisal review to ensure that appraisals meet standards and regulations.
Attorneys: Attorneys may request an appraisal review as part of a legal dispute or settlement.
Ultimately, anyone who needs an accurate and reliable appraisal report can benefit from an appraisal review.
Who Should Do The Review
An appraisal review should be performed by a professional appraiser who is independent and impartial, and has the knowledge, skills, and experience to assess the accuracy, reliability, and credibility of the original appraisal report. A review appraiser should have the following qualifications:
Education and Training: The review appraiser should have received formal education and training in appraisal methods and technique.
Certification or Licensure: The review appraiser should be certified or licensed by a professional appraisal organization.
Experience: The review appraiser should have a minimum of several years of experience in the appraisal industry, and should have knowledge of the specific property type and market area being reviewed.
Independence: The review appraiser should have no prior relationship with the appraiser whose work is being reviewed, and should be impartial in their assessment.
It is important to select a qualified and experienced review appraiser to ensure that the appraisal review is conducted in a professional and credible manner.
At New Jersey Realty Advisory Group, LLC, we have performed a variety of review work for lenders, state agencies and attorneys. Jennifer Barany, MAI, SRA has over 10 years’ experience in the appraisal field preforming both commercial and residential appraisals during that time. Al Chanese, MAI, has over 40 years’ experience in the real estate profession, starting out as a real estate sales person in the 70’s and as a full time real estate appraiser since 1984. We both meet all the criteria of who should do a review.