American Appraisal Services, Inc.

NOTE TO THE REAL ESTATE APPRAISER: As a newly registered real estate appraiser, it is imperative that you are aware of what mortgage company reviewers are looking for when they review your uniform residential appraisal report (URAR). Please peruse the items below and be sure to refer to them each time you are in the process of completing residential appraisal reports for American Appraisal Services, Inc.

APPRAISAL REVIEW ITEMS:

• Is the sales comparison section complete and accurate?

• Has the appraiser selected his or her comparable sales from the subject neighborhood?

• If not, has the appraiser explained why comparable sales were selected from a different neighborhood?

• In your opinion, are the comparable sales really similar with respect to location, site, design and style, quality and amenities, as well as size and utility?

• Are all of the comparable sales recent sales of similar properties from the subject neighborhood?

• If the comparable sales are over three months old, has the appraiser explained why he/she failed to use the most recent sales?

• Are room counts and square foot areas of the subject and comparable sales similar?

• Do the sales prices and prices per square foot of the comparable sales correlate and indicate comparability?

• Are there large differences in the price per unit and per square foot between the subject and comparable properties?

• Has the appraiser bracketed his/her sales data (before making adjustments)?

• Do time adjustments, for date of sale, appear reasonable in light of market trends and current market conditions?

• Has the appraiser made excessive adjustments (gross adjustment figures that are 25% or more of comparable sales prices and individual line adjustments that are 10% or more of comparable sales prices)?

• Has the appraiser made numerous large adjustments?

• Has the appraiser adjusted all three comparable sales in a reasonable and consistent manner?

• Does the appraiser make unsupportable or faulty adjustments?

• Is there any missing or inaccurate information in the market analysis section?

• Are the appraiser’s mathematical calculations accurate?

• Is there a convincing value range with respect to the three adjusted comparable sales? In brief, are the adjusted value conclusions reasonable and similar?

REVIEWING YOUR APPRAISAL WORK -2-

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• Does the appraiser’s final value conclusion relate to the adjusted comparable sales?

• Has the appraiser selected good market data and handled it well?

• Has the appraiser commented on the subject’s marketability?

• Does the Appraiser’s marketability information appear to be accurate?

• Does it appear that the appraiser is backing into any or all of the approaches to value?

• Is there a lack of clarity with respect to the appraiser’s reasoning?

• Can you read the appraisal report, step by step, and arrive at the same conclusion of value as the appraiser?

• Does the appraiser appear to be an advocate rather than an individual offering an independent and impartial third party opinion of value?

• Are there missing photographs or photographs that do not adequately show the subject property and comparable properties?

• Is other illustrative material missing or poorly done?

• If the appraiser is using computer-generated data, are the facts and comments in the report accurate and applicable to the subject and comparable properties?

• Does it appear that the appraiser is using the computer as a substitute for thinking?

• Are the appraiser’s comments and final reconciliation of value adequate and does the appraisal give insight into the value and marketability of the subject property?

• Is the appraiser’s value conclusion reasonable?

• Do you wind up with a different value conclusion from the appraiser, based upon data contained within the report?

• In your opinion, has the appraiser failed to prove his/her case?

• Does it appear that the subject property has been over appraised?

• Has the appraiser signed the report and typed his/her name under the signature?

• Is there a phone number on the report and/or cover letter, which would enable the reviewer to contact the appraiser and clarify a questionable appraisal report?

• Is the valuation section of the report (page two) acceptable?

FINAL NOTE: If you comply with the above review items, I am sure that your real estate appraisal reports will be of the highest quality and over and above the majority of the appraisal work done in the Atlanta metropolitan area. Thank you and Good Luck!!!

10/2001 Dr. Eric T. Martin, President

Tags: Appraisal, Certified, dr. eric martin, Licensed, Real Estate

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