A property appraisal review acts like a professional double-check of a real estate appraisal. When lenders provide a mortgage, the home itself is collateral, so verifying the property’s value accurately is crucial for managing financial risk. A review reassesses the original appraisal to confirm it followed proper methodology, used appropriate comparable sales, and presented a credible value.

Lenders commonly order an appraisal review to protect themselves, especially for high-value loans like jumbo mortgages or commercial properties. Reviews may also be triggered if the initial report has gaps, questionable data, or values that seem inconsistent with the local market. Some lenders conduct random appraisal audits to maintain quality and compliance in their lending process. Properties with unique features or uses often warrant an appraisal review because they can be difficult to value accurately.

There are two main types of appraisal reviews:

  • Desk Review: Conducted remotely, the review appraiser studies the appraisal report and public data but does not visit the property. This is the most common review type, typically used for routine quality control.

  • Field Review: In addition to reviewing the report and data, the appraiser inspects the property and sometimes comparable sales firsthand. This thorough approach is usually reserved for complex situations or larger loans.

If a homeowner believes their appraisal is too low, they can request a Reconsideration of Value (ROV) through their lender by supplying new evidence such as corrected property details or stronger comparable sales. If that fails, they may commission an independent appraisal review, though lenders are not required to accept third-party reviews.

Appraisal reviews can confirm the original value, suggest changes (higher or lower), or occasionally find the appraisal too flawed to determine a value. Minor errors in a review are often fixed by the original appraiser, but significant issues may require a new appraisal or affect loan approval.

For more on appraisal challenges, see our article on Property Appraisal Discrepancies. To understand the loan context better, explore Mortgage Qualification Criteria.

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