Appraisal Review

Review Summary

A one-look roll-up of the subject, the appraised value, the effective and report dates, and the appraiser so a reviewer can orient before reading the detail.

Assignment and Compliance Details

The assignment elements USPAP Standards 1 and 2 require the report to identify - intended users, interest appraised, report option, inspection type, and any extraordinary assumptions or hypothetical conditions - so the reviewer can confirm the report is complete and fit for its intended use.

Appraiser Credentials and Independence

The appraiser's license type, number, and state and whether that credential is adequate for the property type and transaction value under FIRREA, plus any red flag that the value was influenced by a party to the transaction in conflict with Regulation Z valuation independence.

Subject Property Profile

The subject's physical and legal profile - size, year built, condition and quality ratings, zoning and legal-use status, occupancy, and any adverse conditions - that the value opinion must be consistent with.

Highest and Best Use

The highest-and-best-use conclusion as vacant and as improved, and whether the report tests all four criteria and stays consistent with zoning and the approaches the appraiser then developed.

Sales Comparison Grid

The sales-comparison approach captured one row per comparable - address, proximity, sale price and date, size, net and gross adjustments, and adjusted value - so the adjustments can be re-checked.

Comparable Adjustment Review

A per-comparable test for the deficiencies reviewers catch most often - net and gross adjustment percentages against guideline, unsupported (legacy or experience) adjustments, a missing time adjustment, stale sales, and dissimilar or unphotographed comps.

Cost Approach

The cost approach - site value and its method, cost new, depreciation, and the indicated value - with a check that site value plus depreciated cost foots to the stated indication, or the appraiser's reason for omitting the approach.

Income Approach

The income approach - market rent, vacancy, expenses, NOI, and capitalization rate - with a check that NOI divided by the cap rate foots to the stated indication, or the appraiser's reason for omitting the approach.

Reconciliation and Value Conclusion

The reconciliation and final value - which approaches were developed, their indications, the weighting rationale, and whether the conclusion is a reasoned judgment rather than a mechanical average, plus the value premise, effective date, and any subject-to conditions.

Value Reasonableness Checks

The quantitative cross-checks a reviewer runs - is the concluded value inside the adjusted-comp range, is price-per-square-foot reasonable, do the cost and income approaches foot, how many comps breach the adjustment guideline, and is the effective date current for a lending decision.

Prior Value Reconciliation

The concluded value reconciled against the contract price, any prior appraisal, or an assessed / automated value, with the variance computed and whether a material gap is explained in the report.

Deficiencies and Conditions

Every exception the review surfaced consolidated into one actionable list, each finding categorized and graded Error, Condition, or Observation, referenced to the report and the governing standard, with the specific action needed to clear it.

Review Classification

The single lending-reliance decision for the appraisal - Accept, Accept with conditions, Reject, or Needs manual review - driven by the reasonableness checks and the consolidated deficiencies.

Reviewer Report

The written review-appraiser report per USPAP Standard 4 - the work under review, the scope of the review, the material findings by severity, and the conclusion with any conditions - without stating a new opinion of value.