What might be a consequence of not conducting a peer review on an appraisal?

The consequence of not conducting a peer review on an appraisal primarily involves the increased risk of inaccuracies and biases. Peer reviews serve as a mechanism for quality control, allowing experienced appraisers to evaluate the work of their colleagues. This process helps identify potential errors, both in terms of data used and methodologies applied, and it can uncover biases that the original appraiser might not have recognized.

Without this critical check, there is a greater chance that the appraisal may contain misleading conclusions or improper valuations, which can have significant ramifications—such as affecting lending decisions or market perceptions. The lack of a peer review process can also result in overlooking best practices within the industry, leading to a diminished standard of professionalism overall. Thus, conducting peer reviews is essential for maintaining the integrity and reliability of appraisals.