Appraisal Review: What It Is and Why Lenders Order a Second Opinion

Desk Review vs. Field Review

A desk review evaluates a report’s data, methodology, and conclusions without a site visit, while a field review includes an independent inspection of the subject property and, often, verification of the comparables used — a more thorough, and more costly, level of scrutiny.

What a Reviewer Evaluates

A reviewer examines whether the original appraiser’s data is accurate and current, whether the approaches and adjustments applied are appropriate and well-supported, and whether the report complies with applicable standards and the client’s specific requirements.

USPAP Standard 3

Appraisal review assignments are governed by USPAP Standard 3, which requires the reviewer to develop and report a review opinion — on the quality of the work under review, or on a value conclusion of their own — with the same rigor and impartiality required of the original appraisal.

When Lenders Require a Review

Reviews are common for larger loan amounts, complex or unusual properties, and portfolio or agency-related transactions, where an institution’s internal risk policies call for an independent check before an appraisal is relied upon for underwriting.

Dunkin Advisors performs both appraisal assignments and independent reviews in accordance with USPAP Standard 3. Contact us to discuss your review requirements.