What is a Property Appraisal Review?
Property is any real estate or asset used to conduct business, such as land, building structures, or rental units. An appraisal review on narrative and form appraisal reports requires not only knowledge of OTC, FDIC, NCUA, FNMA, IRS, and USPAP guidelines, but also requires years of experience. Our commercial property review experience includes, but is not limited to, apartment buildings, office buildings, fast food restaurants, industrial parks, industrial buildings, schools, retail shopping centers, automotive centers, self-storage facilities (mini-warehouses), churches, and vacant commercial land and other special use commercial property. The Federal Reserve has stated that financial institutions must have an effective real estate appraisal evaluation program. A residential or commercial review appraiser performing reviews should have the appraisal knowledge and experience to assess compliance with the Federal Reserve Regulation 12 CFR 564.4. Review of residential homes is very similar to a commercial appraisal review.
Tustin CA Real Estate Property Appraisal Review
The requirements below are prudent real estate property appraisal policies that should be followed on all loans. Property appraisers should provide enough information on their reports so that anyone reviewing the report can clearly and logically understand how they came to their value conclusion. Important property valuation indicators include:
– The most recent and similar comparables sales available as part of the sales comparison approach must be used.
– Verification of comparable sales with a reliable party that is not associated with the subject property.
– Two of the comparable sales must have closed within the last 60 days. One must have closed within the last 30 days. Or the appraiser to explain why one within 30 days is not available.
– At least one current listing or pending sale must be provided.
– Comparable sales must be mapped in the appraisal.
– Days-on-market for subject and comparable sales must be provided, if applicable.
– If the appraiser is unable to meet any of the above requirements, the appraiser must provide a detailed explanation as to why the requirements were not met, and if it resulted in making an adjustment to the property value.
– If an appraisal is more than 90 days old, a new appraisal is required.