What is the purpose of an "appraisal review"?

The purpose of an "appraisal review" is to evaluate the quality and rationale of an appraisal report. This process involves a detailed examination of the original appraisal's assumptions, methodologies, and conclusions to ensure they align with established standards and practices. During an appraisal review, the reviewer checks for accuracy, completeness, and adherence to relevant guidelines or regulations. This assessment helps to verify that the appraisal is credible and can be relied upon for decision-making, such as in real estate transactions or lending activities.

Understanding the integrity of the appraisal process is crucial, as it directly impacts property valuation and market stability. The review ensures that the findings are justified and that the appraisal meets the necessary professional standards, ultimately protecting all parties involved in a transaction.