Appraisal Review

Appraisal Review

It’s often prudent to get a second opinion on a commercial real estate appraisal, similar to the same practice in other industries. 

BBG has a dedicated team of state certified and MAI designated appraisers with at least 10 years of experience and specialization in appraisal review. The team includes valuation generalists along with specialists in hotel, retail, office, industrial and self-storage assets. Clients engage appraisal review services for several reasons:

  1. Double checking whether the appraisal used credible and reasonable assumptions can further reduce risk when considering the feasibility of real estate development.
  2. An appraisal review can reinforce a client’s confidence in the appraisal report by checking to ensure that appropriate data has been collected properly and analyzed logically. The process also verifies that conclusions are consistent with the information presented in the report.
  3. Lending institutions use appraisal review to manage risk. It’s pupose is to verify value conclusions and alert the lender to any additional risks associated with the property.
  4. Appraisal reviews are helpful in supporting litigation and dispute resolution matters either to lend credibility to conclusions of previous appraisals or demonstrate shortcomings.
  5. Appraisal reviews are used to assess work products of appraisers for clients who have little knowledge of appraisal and/or have no internal appraisal capabilities.

Proven Process

BBG provides appraisal review for a stable of gold-chip banks and lenders and other clients that trust our team with this important work.

Based on client preferences, we use approved vendors and can update licenses and qualifications annually. Our scope of work includes monitoring and tracking appraisal completion to ensure adherence to the client’s timeline, in addition to coordinating client/appraiser communication. In addition, BBG maintains a scorecard for each appraisal that can be provided to the client to maintain data on the quality and timeliness of work performed by appraisal firms BBG engages on behalf of the client.

Over the years, we have developed a proven appraisal review process that includes:

  • Desk-top review of the appraisal report to ensure adherence to FIRREA and USPAP requirements as well as the client’s guidelines.
  • Review data and data adjustments, valuation methodologies, and valuation analysis to determine if conclusions in the report are appropriate and reasonable, developing reasons for agreement or disagreement.
  • The appraisal review report is made in accordance with Standards 3 and 4 of the Uniform Standards of Professional Appraisal Practice (USPAP).
  • If any discrepancies or deficiencies are identified in the appraisal report, we will work with the appraisal firm to clarify and resolve the issue(s).
  • If a report has been found to require clarification or revisions, BBG will review the revised appraisal report to determine that review comments have been adequately addressed and documented.

 

    Susan Kominski, CRE, FRICS

    Senior Managing Director

    Susan Kominski has extensive experience in valuation, investment analysis and financing. She is currently a Senior Managing Director at BBG. Her diversified background includes a wide range of applications including commercial real estate valuations, portfolio valuations, due diligence analysis, capital markets finance, mortgage loan underwriting, corporate real estate advisory and management consulting. These activities have been conducted on behalf of major financial institutions, major corporations, individual investors, and legal firms. In addition, Susan’s expertise also includes a significant appraisal management practice, including assisting clients with developing scope of work requirements. Susan has a deep understanding of capital markets underwriting parameters, enabling her to provide an improved process between appraisal firms and lenders.

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