What is the purpose of an appraisal review?

The purpose of an appraisal review is to evaluate an appraisal report for quality and compliance. This process involves ensuring that the original appraisal meets the relevant standards and regulations, such as those established by governing bodies or appraisal organizations. Evaluating the quality includes checking the validity of the data used, the appropriateness of the methodologies applied, and ensuring that the conclusions drawn are reasonably supported by the provided information. This systematic review is essential to maintain the integrity of the appraisal and ensure that it can be relied upon for making informed decisions in real estate transactions or assessments.

While offering a second opinion on property value might seem related, it does not encompass the full scope of an appraisal review, which focuses more on the appraisal process and its adherence to guidelines rather than just reaching an alternate conclusion on value. Estimating repairs needed for a property pertains to a different aspect of property evaluation, while analyzing market trends and forecasts is an economic analysis that may inform an appraisal but is not the core focus of an appraisal review.