Appraisal Reviews and Their Importance

Abstract

Many articles have been written on the art of reviewing appraisal reports by professional real estate appraisers for bank lending and litigation purposes. This article explains why attorneys, Judges, IRS, assessors and other individuals that obtain appraisal reports from third parties should have the reports reviewed by qualified individuals who are professional real estate appraisers. This article explains the review process, the guidelines that should be followed, and the conclusions that can be drawn from an appraisal review. Some of the reasons for divergencies between appraisal reports are discussed, such as fraud, incompetency, human error, and client pressure. The authors introduce some methods that might be employed in order to minimize conflicts, to promote justice and fairness in the appraisal and legal process.

Keywords: Appraisal Review, litigation support, uniform standards of professional appraisal practice, Real Estate Appraisal, international valuation standards

JEL Classification: L85, D74, G18, G21, G24, G38, H26, H79, K11, K42