Sheahan & Associates

Real Estate Appraisal Review and Consulting

USPAP Compliance, Appraisal Review – Standard 3

In developing an appraisal review assignment, a reviewer must identify:

  • The reviewer’s client and intended users
  • The intended use of the review
  • The purpose of the assignment
  • The subject of the appraisal review assignment
  • The date of the review
  • The property and ownership interest appraised (if any) in the work under review
  • The date of the work under review
  • The effective date of the opinion in the work under review
  • The appraiser(s) who completed the work
  • The scope of work to be performed in the appraisal review

Further, the reviewer must develop opinions of:

  • The completeness of the material under review within the scope of work applicable in the assignment;
  • The apparent adequacy and relevance of the data and the propriety of any adjustments to the data
  • The appropriateness of the appraisal methods and techniques used and develop the reasons for any disagreement
  • Whether the analyses, opinions, and conclusions in the work under review are appropriate and reasonable and develop the reasons for any disagreement.

The above is a brief summary.  Refer to the complete text of Standards Rule 3-1 in USPAP.

A written appraisal review must state:

  • The reviewer’s client and intended users
  • The intended use of the review
  • The purpose of the assignment
  • The subject of the appraisal review assignment
  • The date of the review
  • The property and ownership interest appraised (if any) in the work under review
  • The date of the work under review
  • The effective date of the opinion in the work under review
  • The appraiser(s) who completed the work under review
  • The scope of work to be performed in the appraisal review
  • The reviewer’s opinion as to the completeness of the material under review within the scope of work applicable in the assignment;
  • The reviewer’s opinion as to the apparent adequacy and relevance of the data and the propriety of any adjustments to the data
  • The reviewer’s opinion as to the appropriateness of the appraisal methods and techniques used and develop the reasons for any disagreement
  • The reviewer’s opinion as to the whether the analyses, opinions, and conclusions in the work under review are appropriate and reasonable and develop the reasons for any disagreement.
  • A signed certification in accordance with Standards Rule 3-2(f)