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Jack Schlenk's Blog

By Jack Schlenk | Appraiser in Chicago, IL

Forensic Appraisal Review


Per Webster's Dictionary;
Forensic, adj. 1. Pertaining to or use in courts of law, or in public debate. 2. Adapted or
suited to argumentation, rhetorical.

Appraisal, n. 1 The act of estimating or judging the nature or value of something, or
someone. 2. A valuation, as for sale or taxation. 3. An estimate or considered opinion.

Review, n. 1.Critical article,or report. 5. Inspection or examination. 9. A viewing of the
past events, circumstances, or facts.

USPAP Standard 3: Appraisal Review, Development and Reporting.
In developing an appraiser review assignment, an appraiser acting as a reviewer must
identify the problem to be solved, determine the scope of work necessary to solve the
problem, and correctly complete research and analysis necessary to produce a credible
appraisal review. In reporting the results of an appraisal review assignment, an appraiser
acting as a reviewer must communicate each analysis, opinion and conclusion in a
manner that is not misleading.

When reviewing the Appraisal Report, the question is, did the Report Appraiser (s) comply
with USPAP?.The Ethics Rule, Competency Rule, Scope of Work Rule. Jurisdictional
Exception Rule. USPAP Standard 1, Real Property Appraisal Development, and
Standard 2, Real Property Appraisal Reporting.

In the Fannie Mae, Freddie Mac appraisal forms there is the " Appraiser's Certification"
Did the appraisal report data support the 25 paragraphs (Certification and Agreements)?
Also in these appraisal forms is the "Scope of Work Requirement". Did the appraisal
report data support these requirements? 

If after reading an appraisal report you the reader have "why"questions and if the writer of 
the report can not supply the proper answers and/or documentation to support their data and
opinions in the report, this report may be a candidate for a review.

Short Sales, preforeclosure, and foreclosured properties could benefit the most from a
Forensic Appraisal Report.

An appraisal report that did not comply with any of the following, USPAP, THE APPRAISER'S CERTIFICATION,and the SCOPE OF WORK requirements is is possible the report appraiser
lacked the experience, or the knowledge, or the data resources to write an credible appraisal 
report. 

If the report appraiser and/or the review appraiser lack the competency for the appraisal
assignment it is possible the data use to form a value opinion was not credible.Therefore the
appraisal report value opinion may not be credible.
 
Any data that is in an appraisal report must be support by a reliable source and documented
with a paper trail in the appraisal report and/or in the appraiser's work file. 

For a basic review to warrant a full forensic Appraisal Review contact me.

Jack Schlenk  773 658 8300, jack327@sbcglobal.net
Consultant, Illinios licenses, Certified RE Appraiser, & RE Manageing Broker. 







  

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