What is typically evaluated during the process of a real estate appraisal review?

During a real estate appraisal review, the quality of valuation methods is critically evaluated to ensure the appraisal's conclusions are reliable and defensible. This involves scrutinizing the techniques and approaches the appraiser used to arrive at their value estimate, assessing whether appropriate methodologies were applied based on the characteristics of the property and the market. It ensures that the appraisal adheres to established standards and guidelines, such as those outlined by the Uniform Standards of Professional Appraisal Practice (USPAP).

The appraisal review process focuses on ensuring that the appraiser's reasoning is sound and that the chosen methodologies correlate well with the data and the context of the property being evaluated. A robust appraisal review will identify any potential biases in the valuation process and will assess whether the evidence presented adequately supports the concluded value.

Evaluating property sales history, tax assessments, and market demand trends, while important in the overall context of the real estate market, is not the primary focus of an appraisal review. Instead, these factors may be part of the comprehensive appraisal process but do not directly assess the validity and quality of the valuation methods employed.