Definition
A Review Appraiser is a professional tasked with the responsibility of verifying the credibility and reliability of an appraisal report. This involves a comprehensive evaluation process to ensure that the report meets the Uniform Standards of Professional Appraisal Practice (USPAP) and commonly accepted appraisal practices and principles.
Examples
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Property Purchase: A bank hires a review appraiser to evaluate an appraisal report submitted with a mortgage application. The review appraiser ensures that the property valuation is accurate and current market value standards are upheld.
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Litigation: In cases of property disputes, legal teams may employ review appraisers to assess the original appraisal reports and provide an unbiased second opinion.
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Quality Check: Large appraisal firms may use internal review appraisers to review appraisals before finalizing and presenting them to clients, ensuring adherence to company standards and legal requirements.
Frequently Asked Questions (FAQs)
What does a review appraiser do?
A review appraiser examines appraisal reports for errors, adheres to USPAP standards, verifies data accuracy, and may conduct additional property inspections to ensure the integrity of the appraisal.
How does a review appraiser differ from a regular appraiser?
While a regular appraiser conducts the initial valuation of a property, a review appraiser double-checks this work, scrutinizing the processes and results to confirm the property’s appraised value is supported by credible evidence and methodology.
What credentials are required to become a review appraiser?
Review appraisers typically hold advanced appraiser certifications such as the AI-GRS (Appraisal Institute—General Review Specialist) or AI-RRS (Appraisal Institute—Residential Review Specialist) designations, reflecting their specialized training in appraisal review.
What standards do review appraisers follow?
They follow the USPAP (Uniform Standards of Professional Appraisal Practice) guidelines, particularly Standard 3, which dictates the criteria for evaluating an appraisal review.
What tools or methodologies do review appraisers use?
Review appraisers use various techniques such as cross-verification with comparable properties, detailed analysis of the original appraiser’s data, and sometimes on-site inspections to reassess property conditions.
Related Terms with Definitions
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Appraisal Report: A documented opinion of value provided by a licensed appraiser, detailing property characteristics, comparable sales, and valuation methodology.
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USPAP (Uniform Standards of Professional Appraisal Practice): A set of national standards governing the conduct of appraisal practice in the United States.
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AI-GRS: Appraisal Institute—General Review Specialist, a designation for appraisers specializing in the review of general real estate appraisals.
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AI-RRS: Appraisal Institute—Residential Review Specialist, a designation for appraisers specializing in the review of residential real estate appraisals.
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Comparable Sales (Comparables): Recently sold properties that are similar in characteristics to the subject property and used for comparison in the valuation process.
Online Resources
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Appraisal Institute - Professional organization offering education, training, and designations for appraisers.
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The Appraisal Foundation - A non-profit organization that establishes and promotes the USPAP standards.
References
- Appraisal Institute, “The Appraisal of Real Estate,” Chicago: Appraisal Institute, 2020.
- The Appraisal Foundation, “Uniform Standards of Professional Appraisal Practice (USPAP) 2022-2023,” Washington, D.C.: The Appraisal Foundation.
Suggested Books for Further Studies
- “The Appraisal of Real Estate” by the Appraisal Institute
- “Appraising Residential Properties” by AIREA
- “The Dictionary of Real Estate Appraisal” by the Appraisal Institute
