Calgary, Alberta Real Estate Appraisal Review

Real Estate Appraisal Review Introduction

Real Estate Appraisers are human and they do make mistakes. Not all Appraisers were created equal. Some Appraisers have more formal appraisal education than others, some have more appraisal experience than others, some are more dedicated to their craft than others and some properties are more difficult to appraise than others.

Uniform Standards

The Uniform Standards of Professional Appraisal Practice (USPAP) defines real estate appraisal review as “the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal or appraisal review assignment.” The subject of an appraisal review assignment may be all or part of a report, work file, or a combination of these.

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Real Estate Appraisal Review - Technical or Administrative

An real estate appraisal review is generally seen as being in one of two forms, either Technical or Administrative.

A technical review is performed by an independent third-party appraiser – of an appraisal report prepared by another appraiser for the purposes of forming an opinion as to whether the analysis, opinions and conclusions under review are appropriate and reasonable. It is this form of review that a consumer or advocate may wish to retain when dissatisfied with an appraisal. This service can be particularly insightful and effective in litigation scenarios.

Reviewers have broad flexibility and significant responsibility in determining the appropriate scope of work in a real estate appraisal review assignment.
Information that should have been considered by the original appraiser can be used by the reviewer in developing an opinion as to the quality of the work under review.
Information that was not available to the original appraiser in the normal course of business may also be used by the reviewer; however, the reviewer must not use such information in the reviewer’s development of an opinion as to the quality of the work under review.
Consistent with the reviewer’s scope of work, the reviewer is required to develop an opinion as to the completeness, accuracy, adequacy, relevance, and reasonableness of the report, given law, regulations, Standards, or intended user requirements applicable to that work.

Real Estate Appraisal Reviewer Qualifications

Ideally, a reviewer must have qualifications at least equal to those of the appraiser who did the work. A qualified reviewer generally has expertise with the property type involved in the work being reviewed and with the methodology applicable to the valuation of that property type.

Some positive personal traits of a review appraiser include good verbal and written communication skills and the ability to convince, train, and persuade others. Exhibiting mature judgment in concentrating on the important aspects of the appraisal review process is a desirable quality.

The reviewer should have the ability to read between the lines which is often a characteristic associated with the logical, analytical methods of evaluation; closely akin to being intuitive. Above all, the review appraiser must have the confidence to authoritatively review another’s work and provide constructive criticism in a tactful, responsible manner. Ultimately, the review appraiser must demonstrate competence, objectivity, fairness, and integrity as a professional.

Final Thoughts

A real estate appraisal review is a professional skill and a necessary tool used to promote public trust in the appraisal process. To be review literate, an individual should possess the training to apply review techniques in a manner that leads to credible assignment results. Specific education and testing related to appraisal review, peer review of an appraiser’s review work product, and certification as a professional reviewer, such as the Certified Appraisal Reviewer designation, are all reasonable benchmarks to consider when seeking a qualified reviewer.

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Other Appraisal Services

Benchmark Appraisals service region includes the cities of Calgary and Airdrie and several counties, towns, villages, and hamlets including, but not limited to: