A good appraisal review requires rigorous effort, including obtaining the necessary knowledge, skills, and experience required to review. As a reviewer, sometimes you must untangle conflicting data or rework poor methodology. Review assignments can be extremely complex and exceedingly time consuming. So why would you want to offer appraisal review services as part of your business model?
Here are some notable benefits to providing appraisal review services:
1. Business enhancement
Clients frequently rely more on appraisers who list review work in their profiles. If you are experienced in appraisal review, you are more likely to be recognized as a knowledgeable specialist, and you may be chosen for complex appraisal assignments based on this work experience. Moreover, it is expected that, as an experienced review appraiser, you will be more likely to deliver a comprehensive and accurate non-review appraisal assignment.
An additional business benefit is that appraisal review work adds to your diversity of product offerings.
Review practice lets you know you are on top of appraisal quality compliance because, as a review appraiser, you are constantly looking at appraisals completed by your peers. As you examine others’ work, you are able to enhance both your review and appraisal skills.
3. A quality filter
When you complete review work, you develop an effectual quality filter for examining your own analyses and conclusions in your own valuations. Therefore you increase your ability to avoid revision requests in your own appraisal reports.
CE Course: Learn a systematic review strategy for any given appraisal review problem. Enroll in Introduction to Commercial Appraisal Review.
4. Situational awareness
Appraisal review aids you in staying current on local market trends and economic influences. As you read others’ appraisal reports, you’ll likely be exposed to more information than you could accumulate otherwise. For example, providing appraisal review services allows you to track things like trending land uses, proposed construction, and code or zoning changes.
5. Improved efficiency
In building a case for or against the quality of an appraisal, you become better at developing your own analyses, opinions, and conclusions–and at crafting a better presentation of the logic and support in your own appraisal reports. Once you acquire the research and writing competencies necessary for a compliant review, writing your own appraisal reports will typically take less time.
6. Expansion and enhancement
It is easier to learn by example than from theory alone. After reviewing numerous appraisals, you can ascertain and state with true confidence the customary practices of your peers, and possibly also glean great commentary and strategies that you can use in your own complex assignments.
7. Professional development
In an effort to keep your skills current and up to date, as a review appraiser, you’ll be more likely to invest in your own professional development and hone your appraisal skills through the training and coaching of others, and by attending professional association meetings, classes, and seminars.
Want to start offering appraisal review services as part of your real estate appraisal business model? Gain the education you need to become a successful reviewer with our online CE course, Introduction to Commercial Appraisal Review.
Editor’s note: This post was originally published on July 6, 2020 and updated on September 20, 2022.