The Federal Reserve has recently reiterated that “financial institutions must have an effective, independent real estate appraisal and evaluation program,” and the appraisers performing reviews should “have the knowledge and expertise to assess compliance with the Federal Reserves appraisal regulations and guidelines.” Here at Pacific Realty Appraisal Solutions, we provide Residential Appraisal Review Services that are professional, objective, and ethical. We offer:
- Primary Funding Appraisal Reviews
- Standard Desk Reviews
- Enhanced Desk Reviews
- Field Review Appraisals
- Enhanced Field Review Appraisals
- Retro and Compliance Reviews
- Fraud Detection Reviews
- Litigation Support Reviews
We can review your appraiser's report for conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), as well as consistency with current appraisal theory and best real estate appraisal practices. Our reporting format gives you a comprehensive snapshot of the highlights and low points of the original appraisal. Here at Pacific Realty Appraisal Solutions, we are experienced in all types of appraisal reviews, review procedures, and the responsibilities of review appraisers. We understand what makes a quality appraisal and what the most common deficiencies are, especially in our home market. At the same time, we are professional enough to recognize that our competitors in our market are capable of doing a good job, and you can count on us to ethically evaluate appraisal reports performed by others.
Some of the questions we ask in an appraisal review include:
Did the appraiser actually analyze your property and its market, and reported a value based on that research, or has the appraiser picked a value number out of the thin air without documented analysis and adequate support? Do the appraisal’s contents support the appraiser’s conclusions?
Is the appraiser’s comparable selection and adjustment application supported by market data, or is the report mostly based on the appraiser’s “years of experience and knowledge of the area” and relies on unsupported and unreasonable assumptions?
Why should you use a local appraisal review firm?
When you make a loan on real property do you have a formal, written, documented review process for the appraisal, or do you just look to see if the appraiser “hit the number”? After reading the report, do you get the feeling that much of it has been copied from a previous appraisal of a similar property? Do the report’s format, professionalism, and contents meet your expectations, or has the appraiser just filled out a word processing template without sufficient analysis to distinguish between your property and any other generic property? Has the appraiser given you a product that is less than what you have paid for?
Do you want to take a property back in foreclosure because an inexperienced out-of-the-area reviewer looked at your loan’s appraisal and failed to identify significant issues? Do you want that phone call from your investor or subscriber with the news that the property has gone into foreclosure because of an inferior appraisal? Do you want a loan to come back to haunt you because of an appraisal that should have been independently and impartially reviewed?
Prior to the savings and loan crisis in the late 1980"s, there were thousands of appraisers across the country that “hit the number” just weeks or months before the foreclosure on the property. Are we headed for a similar real estate cycle? Are you willing to take that chance with your livelihood? Now, more than ever, do you want the liability if one of your loans goes sour because of an inadequately prepared appraisal? We can not guarantee that your loan will be successful or that it won’t go into foreclosure, no one can guarantee that. Nor does our appraisal review include an analysis of the creditworthiness of the borrower or a critique of the appropriateness of the loan transaction. However, here at Pacific Realty Appraisal Solutions you can rely on our independent judgment. We do not reappraise the property, but we look for problems in the original appraisal, not to slow down, delay, or jeopardize your transaction, but to help remove any doubt you might have about the merits of the appraisal under review and will not place an obstacle in the path of your successful loan closing!