What is appraisal review and when might a re-appraisal be requested?

• A. Lenders’ assessment of an appraisal’s credibility and methods; a re-appraisal may be requested if value seems unsupported or inconsistent with market data.
• B. A re-check of the real estate tax assessment.
• C. An appraisal from a different appraiser to speed closing.
• D. A confirmation of loan approval based on appraisal.

Answer: (A)

Appraisal review is the lender’s assessment of an appraisal’s credibility and the methods used to determine value. It ensures the appraiser used appropriate data, proper comparable sales, and correct adjustments in line with appraisal standards. A re-appraisal may be requested when the reported value doesn’t seem supported by market data or when there are inconsistencies with market comparables, questionable adjustments, data errors, or underwriting concerns. The purpose is to confirm that the collateral value is accurate before moving forward with the loan.

Other options describe activities that aren’t appraisal review: checking real estate tax assessments, swapping to a different appraiser to speed closing, or simply confirming loan approval—none capture the lender’s formal verification of the appraisal’s credibility and methodology.