Appraisal review is an objective exercise measuring appraisal work against established standards and logic. The Uniform Standards of Professional Appraisal Practice (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 and standards, and objectively analyzes the methodology and logic contained in the original 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)