What is an "Appraisal Review" in the context of real estate?

An appraisal review refers specifically to the process of evaluating another appraiser's work. This evaluation focuses on ensuring that the appraisal adheres to established standards and guidelines, such as those set forth by the Uniform Standards of Professional Appraisal Practice (USPAP). During an appraisal review, the reviewer examines the methodologies used, the data chosen, and the conclusions drawn by the original appraiser to determine if the appraisal report is credible and reliable.

This process is essential to maintaining the integrity of the appraisal profession as it helps ensure consistency and quality in appraisals. It also provides a safeguard against potential biases, errors, or omissions in the appraisal process, ultimately benefiting clients, lenders, and regulatory bodies that rely on accurate appraisals for decision-making.

In contrast, processes such as financial analysis of property sales, marketing a property, or conducting statistical analyses of local markets serve different purposes within the real estate spectrum and do not involve the specific evaluation of another appraiser's work. Thus, they do not align with the definition of appraisal review.