Review of an appraisal is the most important aspect of a firms production. Appraisals with misleading and confusing analysis make a report less reliable and does not serve the public well. Lets face it we all get busy and if working from home, as many appraisers do, there can be many distractions. While the majority of reports we review only require an occasional suggested to expand explanation and commentary some may have major flaws. Outside of the occasional human flaw there is instances when reports are not saved properly within the appraisal software and uncheck the report gets delivered. Whatever the case may be the review of a report prior to delivery to the end user is the essential buffer zone to get all things in order.
Characteristics of a Quality Appraisal Report
Whether its a FNMA form or a narrative they all get a review here at Sun Point. The characteristics we look for are:
A good report should discuss market conditions on a Micro and Macro level. An appraiser is responsible for a report for a minimum of 5 years. Many things may and most likely will change in that time. Having some level of detail regarding the market at the time of the effective date of the report is needed.
The report must comply with USPAP and the appropriate regulatory requirements. Several of our clients/investors have specific items they have requested in the scope of the assignment which will need to be addressed as well.
All in all the key to a good report is it is well written, clear, concise, readable, has good logical flow, no unneeded useless information, its factual, organized, well written comments, competent and most importantly reliable.