Fill in a Valid Review Commercial Appraisal Template

The Review Commercial Appraisal form is a structured document designed to evaluate the accuracy and completeness of commercial property appraisal reports. This form facilitates a thorough assessment of various factors, including property description, valuation methods, and compliance with relevant standards. To ensure your appraisal is reviewed effectively, fill out the form by clicking the button below.

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The Review Commercial Appraisal form is a crucial tool for evaluating the accuracy and reliability of an appraisal report. This form outlines essential information about the property, including its location, type, and the name of the appraiser. It serves multiple purposes, primarily to assess the market value or other interests of the property in question. The form prompts the reviewer to examine various aspects of the appraisal report, such as property identification, ownership history, and assessment details. Sections dedicated to location analysis and property description help ensure that all relevant factors, including zoning laws and physical features, are adequately addressed. Additionally, the form evaluates the valuation methods used, such as the cost approach, sales comparison approach, and income capitalization approach. By guiding the reviewer through these critical components, the form facilitates a comprehensive assessment that can influence financial decisions and property transactions.

Review Commercial Appraisal Example

COMMERCIAL APPRAISAL REVIEW FORM

The appraisal report which is the subject of this review is briefly identified and described as follows:

Name of Project/Property __________________________________________________________________________________________

Location/Legal __________________________________________________________________________________________________

Type of propert ____________________________________________________________________ ❐ Existing ❐ Proposed Construction

Name of Appraiser _________________________________________________________________ Telephone ____________________

Address	_______________________________________________________________________________________________________
Report Addressed to: _______________________________________________________________ Telephone ____________________
Address	_______________________________________________________________________________________________________
Type of Appraisal Report: ❐ Narrative ❐ Printed Form ❐ Other (identify) ___________________________________________________

Section I — Purpose and Function of Appraisal

Value Sought:	❐ Market Value	❐ Other (identify)	Date of value:	❐ Current	❐ Future	❐ Past
		______________	Definitions Given For:	❐ Value Sought	❐ Interest To Be Valued
Interests Valued:	❐ Fee Simple	❐ Leased Interest		❐ Market Rent	❐ Other (identify)
	❐ Easements	❐ Other (identify)			__________________
		______________	Assumptions and	❐ Standard	❐ Consistent with
Real Estate Valued	❐ Land	❐ Improvements	Limiting Conditions:		Valuation Process
	❐ Ground Lease	❐ Personal Property		❐ Third Party	❐ Unreasonable or
	❐ Other (identify)_______________			Report	Excessive
Comments:

______________________________________________________________________________________________________________

Section II — Property Identification, Ownership and Assessment

Does the report adequately contain or identify:	Yes	No	N/A			Yes	No N/A
Property Location/Address:	❐	❐	❐	Owners of Record		❐	❐	❐
Legal Description	❐	❐	❐	History of Ownership
Real Estate Tax Information	❐	❐	❐	If Applicable to Subject Property:
Assessments, Bonds, etc.	❐	❐	❐	Amount of Purchase Price	❐	$____________
Existence of:				Pending Sales Price	❐	$____________
Deed Restrictions	❐	❐	❐	Asking Price	❐	$____________
Covenants, Conditions, Restrictions	❐	❐	❐	Option Price	❐	$____________
Moratoriums	❐	❐	❐	Other	❐	$____________
Comments:

______________________________________________________________________________________________________________

Section III — Location Analysis

Does the report adequately describe or identify:		Does report:
Region	❐ Yes ❐ No ❐ N/A	Sum up and rate the above area	❐ Yes ❐ No ❐ N/A
City	❐ Yes ❐ No ❐ N/A	Identify and discuss important trends	❐ Yes ❐ No ❐ N/A
Neighborhood	❐ Yes ❐ No ❐ N/A	Identify nuisances or hazards	❐ Yes ❐ No ❐ N/A
Comments:

______________________________________________________________________________________________________________

Section IV — Property Description

Comment upon the descriptions and analysis of the following:		IMPROVEMENTS:
SITE:		Adequate description of physical features ❐ Yes ❐ No
Adequate description of physical features❐ Yes ❐ No		Attention given to:
Identification of encumbrances	❐Yes ❐ No	Quality	❐ Yes ❐ No
Does the report state adequacy of site for		Functional Utility and Appeal	❐ Yes ❐ No
existing or proposed use	❐Yes ❐ No	Age	❐ Yes ❐ No
Utilities available	❐Yes ❐ No	Condition	❐ Yes ❐ No
Special Problems:		Hazardous Conditions	❐ Yes ❐ No
Flood	❐Yes ❐ No	ZONING:
Environmental Hazards, Seismic, Toxic etc.		Statement	❐ Yes ❐ No
Other (identify)_________________	❐Yes ❐ No	Definition	❐ Yes ❐ No
Comments:

______________________________________________________________________________________________________________

Section V — Highest and Best Use

Definition	❐ Yes ❐ No	Does property conform to zoning and
Components	❐ Yes ❐ No	neighborhood	❐ Yes ❐ No
Conclusion of Highest and Best Use______________________		Is use legal and physically possible	❐ Yes ❐ No
Current zoning ______________________________________		Has the report in this or other sections discussed:
Status zoning change _________________________________		Marketability (supply-demand, market trends,
Status of building permit (if possible construction) ____________		absorption occupancy levels)	❐ Yes ❐ No
Does report discuss feasibility/profitability	❐ Yes ❐ No	Other (identify) ____________________________________
		Were other studies/reports considered	❐ Yes ❐No
Comments:

______________________________________________________________________________________________________________

Copyright © by the National Association of Review Appraisers and Mortgage Underwriters 1224 North Nokomis NE, Alexandria, Minnesota,USA. This formReview Form No. 4002 may be reproduced without written consent, however, the “National Association of Review Appraisers and Mortgage Underwriter’s must be acknowledged and credited.

SECTION VI — Property Valuation

Comment and rate the approaches to value:
COST APPROACH:	Satisfactory		Unsatisfactory	DISCOUNTED CASH FLOW ANALYSIS (DCF)
Format		❐	❐		Satisfactory	Unsatisfactory
Adequacy of data		❐	❐	Format	❐	❐
Source of costs		❐	❐	Adequacy of data and support for:
Land value estimate		❐	❐	Holding Period	❐	❐
Estimated cost new		❐	❐	Growth Rates	❐	❐
Depreciation estimate		❐	❐	Discount Rate	❐	❐
SALES COMPARISON APPROACH:				Development of Cash Flow Estimates ❐		❐
Format		❐	❐	Reversionary Value	❐	❐
Adequacy of data		❐	❐	Other Methods of Processing Income
Sources of data		❐	❐	Stream (Mortgage Equity, Band of
Summary of sales table		❐	❐	Investments, etc.)	❐	❐
Use of adjustment grid table		❐	❐	RECONCILIATION:
Comparative analysis of sales		❐	❐	Indicated values are:
INCOME CAPITALIZATION APPROACH:				Cost Approach	$ __________
Format		❐	❐	Sales Comparison Approach	$ __________
Selection of proper capitalization				Income Approach	$ __________
method		❐	❐	DCF Analysis	$ __________
Adequacy of data and support for:				Other (Pending Sale, etc.)
Comparable Rentals		❐	❐	Value Conclusion		$ ________
Vacancy and Loss Factor		❐	❐	Allocation as Follows:
Operating History		❐	❐	Land	$ __________
Rent Roll		❐	❐	Improvements	$ __________
Income Estimate		❐	❐	Personal Property	$ __________
Expense Estimate		❐	❐	Other	$ __________
Net Operating Income		❐	❐	Total Value		$ ________
Capitalization Rate		❐	❐

Comments:

______________________________________________________________________________________________________________

Section VII — Other Report Requirements

Does the report contain a certification ❐ Yes		❐ No	Does the principal appraiser make
Is the report co-signed	❐ Yes	❐ No	statement of concurrence with value
Did the principal appraiser sign the			conclusion	❐ Yes	❐ No
report	❐ Yes	❐ No	Does the report contain appraiser(s)
Did the principal appraiser personally			qualifications	❐ Yes	❐ No
inspect subject property	❐ Yes	❐ No

	Section VIII — Final Rating of Appraisal

	Acceptable	Unacceptable		Acceptable	Unacceptable
Report Format			Property Valuation:
Readability and neatness	❐	❐	Feasibility/Profitability	❐	❐
Mathematical accuracy	❐	❐	Market Trends	❐	❐
Exhibits (Photos, Maps, etc.)	❐	❐	Cost Approach	❐	❐
Appraiser’s analytical ability	❐	❐	Sales Comparison Approach	❐	❐
Purpose and function of appraisal ❐		❐	Income Approach	❐	❐
Property identification	❐	❐	DCF	❐	❐
Locational analysis	❐	❐	Reconciliation	❐	❐
Property Description	❐	❐	Date of Appraisal	❐	❐
Site	❐	❐	Overall Rating of Appraisal
Improvements	❐	❐
Highest and Best Use	❐	❐

Brief Comments on Unacceptable Ratings:

______________________________________________________________________________________________________________

Section IX — Reviewer’s Conclusions — Recommendations

Scope of Review:			If reviewer does not concur with the soundness if conclusion, then
Read report	❐ Yes	❐ No	what is the recommended action:
Interviewed appraiser	❐ Yes	❐ No	❐ Totally reject appraisal
Field Review	❐ Yes	❐ No	❐ Have appraiser rework, revise, update the appraisal
Does the Reviewer concur with			❐ Have another appraisal prepared by someone else
the soundness of conclusion:	❐ Yes	❐ No	❐ Other

Concluding Comments:

______________________________________________________________________________________________________________

Reviewer’s Signature _____________________________________________________________________________________________

Name of Reviewer __________________________________________________________________ Date ________________________

Position ___________________________________________________________________________ Department __________________

Address __________________________________________________________________________ Telephone ___________________

City, State, Zip __________________________________________________________________________________________________

Copyright © by the National Association of Review Appraisers and Mortgage Underwriters P.O. Box 879, Palm Springs, California, 92263 USA. This form	Review Form No. 4002
may be reproduced without written consent, however, the “National Association of Review Appraisers and Mortgage Underwriter’s must be acknowledged and credited.

Click for Review Commercial Appraisal File

File Breakdown

Fact Name	Description
Purpose of the Form	This form serves as a comprehensive tool for reviewing commercial appraisals, ensuring accuracy and adherence to industry standards.
Sections Included	The form is divided into multiple sections, including Property Identification, Location Analysis, and Property Valuation, allowing for a detailed review process.
Types of Appraisal Reports	Reviewers can assess different types of appraisal reports, such as Narrative, Printed Form, or Other, depending on the needs of the review.
Valuation Methods	The form outlines various valuation methods, including Cost Approach, Sales Comparison Approach, and Income Capitalization Approach, enabling thorough analysis.
Legal Framework	In many states, the review process is governed by the Uniform Standards of Professional Appraisal Practice (USPAP), ensuring compliance and professionalism.
Final Rating	At the end of the review, the form allows reviewers to provide a final rating of the appraisal, categorizing it as Acceptable or Unacceptable based on various criteria.

Guide to Using Review Commercial Appraisal

Completing the Review Commercial Appraisal form requires careful attention to detail. Each section must be filled out accurately to ensure a comprehensive review of the appraisal report. After submitting the form, it will be used to assess the appraisal's validity and quality.

Begin by identifying the project or property. Fill in the Name of Project/Property, Location/Legal, and Type of Property (either Existing or Proposed Construction).
Provide the Name of Appraiser, their Telephone number, and Address.
Indicate who the report is addressed to, including their Telephone number and Address.
Select the Type of Appraisal Report from the options provided: Narrative, Printed Form, or Other.
In Section I, specify the Value Sought (Market Value or Other) and the Date of Value (Current, Future, or Past).
Complete the definitions for Value Sought and Interest to Be Valued. Choose the Interests Valued applicable to the property.
State any Assumptions and Limiting Conditions relevant to the appraisal.
In Section II, confirm whether the report adequately contains or identifies the Property Location/Address, Owners of Record, Legal Description, and Real Estate Tax Information. Provide comments if necessary.
Proceed to Section III and evaluate the Location Analysis. Indicate if the report adequately describes the region, city, and neighborhood.
In Section IV, assess the Property Description. Comment on the adequacy of descriptions of improvements and site features.
For Section V, review the Highest and Best Use. Confirm if the property conforms to zoning and neighborhood requirements.
In Section VI, comment on the Property Valuation by rating the approaches to value, including Cost Approach, Income Capitalization Approach, and Sales Comparison Approach.
Check Section VII for Other Report Requirements. Confirm if the report contains necessary certifications and signatures.
In Section VIII, provide a final rating of the appraisal, including comments on any unacceptable ratings.
Finally, complete Section IX with the Reviewer’s Conclusions and recommendations. Sign and date the form, and include your position and department.

Get Answers on Review Commercial Appraisal

What is the purpose of the Review Commercial Appraisal form?

The Review Commercial Appraisal form serves as a structured method to evaluate the quality and accuracy of an appraisal report. It allows reviewers to assess various aspects of the appraisal, including property identification, valuation methods, and compliance with applicable standards. The form ensures that all necessary information is considered, leading to a more reliable appraisal outcome.

What key sections are included in the Review Commercial Appraisal form?

The form is divided into several sections, each focusing on different aspects of the appraisal. Key sections include:

Purpose and Function of Appraisal
Property Identification, Ownership, and Assessment
Location Analysis
Property Description
Highest and Best Use
Property Valuation
Other Report Requirements
Final Rating of Appraisal
Reviewer’s Conclusions and Recommendations

Each section contains specific questions and criteria to guide the reviewer in their evaluation.

How does a reviewer determine if the appraisal report is acceptable?

A reviewer assesses the appraisal report based on several factors, including:

Clarity and organization of the report
Accuracy of the valuation methods used
Completeness of property descriptions and market analysis
Mathematical accuracy of calculations
Compliance with relevant appraisal standards

After evaluating these factors, the reviewer can rate the report as acceptable or unacceptable and provide comments on any deficiencies.

What should a reviewer do if they disagree with the appraisal's conclusion?

If a reviewer does not agree with the appraisal's conclusion, they have several options. They can:

Request the appraiser to rework or revise the appraisal
Have another appraisal conducted by a different appraiser
Totally reject the appraisal if it is deemed fundamentally flawed

The reviewer should document their reasoning and any recommended actions in the "Reviewer’s Conclusions and Recommendations" section of the form.

What are the qualifications required for a reviewer using this form?

The form requires that the reviewer have appropriate qualifications to assess appraisal reports. This typically includes:

A background in real estate appraisal or valuation
Experience in reviewing commercial appraisals
Knowledge of relevant appraisal standards and regulations

Additionally, the reviewer must be able to critically analyze the appraisal process and provide constructive feedback based on their expertise.

Common mistakes

Filling out the Review Commercial Appraisal form can be challenging. Many people make common mistakes that can lead to confusion or delays. One frequent error is leaving out important information. For instance, if the name of the project or property is missing, it can create ambiguity. This oversight can make it difficult for reviewers to understand the context of the appraisal.

Another mistake is not checking the correct boxes. The form includes several sections where respondents must indicate the type of property or the value sought. Failing to mark these options can result in incomplete information. Reviewers rely on these selections to assess the appraisal accurately.

People often neglect to provide adequate comments in the designated sections. The comments are crucial for explaining any discrepancies or concerns about the appraisal. Without these notes, reviewers may struggle to grasp the nuances of the appraisal, leading to misunderstandings.

Another common issue is not addressing all the required sections. Each part of the form serves a specific purpose. Skipping sections, such as the location analysis or property description, can leave gaps in the review process. This oversight can hinder a thorough evaluation.

Inaccurate financial information is another frequent mistake. For example, when filling in purchase prices or asking prices, it’s essential to provide precise figures. Rounding numbers or guessing can lead to significant errors in the appraisal's financial analysis.

People sometimes fail to indicate whether the appraiser has personally inspected the property. This detail is vital for understanding the appraisal's credibility. If this information is omitted, it may raise questions about the appraisal's reliability.

Another error involves not providing sufficient detail about the property's condition or improvements. If the report lacks specifics about the physical features or quality of the property, reviewers may not fully understand its value. This lack of detail can affect the overall assessment.

Lastly, many individuals forget to review their work before submission. Typos and unclear handwriting can lead to misinterpretations. Taking a moment to double-check the form can prevent unnecessary complications and ensure clarity in the review process.

Documents used along the form

When reviewing a commercial appraisal, several other forms and documents may be necessary to provide a comprehensive assessment. Each of these documents serves a unique purpose, ensuring that all aspects of the appraisal process are thoroughly examined. Here’s a list of essential forms that often accompany the Review Commercial Appraisal form:

Appraisal Report: This is the primary document that details the appraiser's findings, including property valuation, market analysis, and methodologies used. It serves as the foundation for the review process.
Property Inspection Report: This document provides insights from a physical inspection of the property. It highlights any issues that could affect the property’s value, such as structural problems or environmental hazards.
Market Analysis Report: This report analyzes current market conditions, trends, and comparable sales in the area. It helps establish a context for the appraisal and informs the reviewer about market dynamics.
Zoning Compliance Letter: This letter confirms that the property complies with local zoning regulations. It outlines permitted uses and any restrictions that may impact the property’s value.
Title Report: A title report reveals the legal ownership of the property and any liens or encumbrances. This information is crucial for understanding the property's legal standing and potential issues.
Environmental Assessment: This assessment evaluates the property for environmental risks, such as contamination. It is vital for identifying any liabilities that could affect property value.
Income and Expense Statement: Often used for investment properties, this document outlines the income generated and expenses incurred. It helps assess the property’s financial performance and potential profitability.
Comparable Sales Analysis: This analysis lists similar properties that have sold recently, providing a benchmark for the appraisal. It aids in validating the appraised value by comparing it to market data.
Lease Agreements: For properties that are leased, these agreements provide details about rental terms, tenant obligations, and potential income. They are essential for understanding the property's cash flow.
Reviewer's Checklist: This internal document guides the reviewer through the appraisal review process. It ensures that all necessary elements are considered and documented for a thorough evaluation.

Each of these documents plays a critical role in the appraisal review process. They collectively enhance the accuracy and reliability of the appraisal, ensuring that all relevant factors are considered. If you're involved in this process, make sure to gather these forms promptly to facilitate a smooth review.

Similar forms

Commercial Property Appraisal Report: Like the Review Commercial Appraisal form, this document evaluates the value of a commercial property. It includes detailed information about the property, market conditions, and methodology used to determine its worth. Both documents aim to provide a comprehensive analysis for stakeholders.
Residential Appraisal Report: This report serves a similar purpose for residential properties. It assesses the value based on comparable sales, property condition, and local market trends. Just as the Review Commercial Appraisal form does for commercial properties, this report helps buyers, sellers, and lenders understand property value.
Property Condition Report: While the Review Commercial Appraisal form focuses on valuation, the Property Condition Report assesses the physical state of a property. Both documents highlight essential features and issues that could impact value, aiding in informed decision-making.
Market Analysis Report: This document analyzes market trends and conditions that affect property values. Similar to the Review Commercial Appraisal form, it provides insights into supply and demand, neighborhood trends, and economic factors that influence property valuation.
Feasibility Study: A feasibility study evaluates the practicality of a proposed project, considering financial, legal, and operational factors. Like the Review Commercial Appraisal form, it assesses potential risks and returns, helping stakeholders make informed decisions regarding property investments.

Dos and Don'ts

When filling out the Review Commercial Appraisal form, there are some important dos and don’ts to keep in mind. Following these guidelines can help ensure that the process goes smoothly.

Do fill in all required fields accurately.
Do double-check the property details, including location and ownership.
Do provide clear and concise comments in the designated sections.
Do use the correct terminology when identifying the type of appraisal report.
Don't leave any sections blank unless they are marked as N/A.
Don't rush through the form; take your time to ensure accuracy.

By following these tips, you can help make the appraisal review process more effective and efficient.

Misconceptions

Misconceptions about the Review Commercial Appraisal form can lead to misunderstandings regarding its purpose and use. The following list addresses seven common misconceptions:

The form is only for new appraisals. The Review Commercial Appraisal form is applicable to both existing and proposed properties, allowing for comprehensive evaluations regardless of the project's status.
It is only relevant for large commercial properties. This form can be utilized for various types of commercial properties, regardless of size, ensuring that all appraisals are reviewed thoroughly.
Reviewing an appraisal means it will be rejected. The review process is designed to assess the quality and accuracy of the appraisal, not to automatically reject it. Constructive feedback may lead to improvements.
The reviewer must have prior knowledge of the property. While familiarity can be beneficial, the review process is based on the information presented in the appraisal report. A thorough review can be conducted without prior knowledge.
All sections of the form must be filled out for the review to be valid. While completeness is important, the reviewer can still provide valuable insights based on the sections that are adequately addressed in the appraisal report.
The form is only for financial institutions. Although commonly used by lenders, this form can also be useful for investors, real estate professionals, and other stakeholders involved in commercial property transactions.
The review process is quick and straightforward. The complexity of the appraisal and the thoroughness required for a proper review can make this process time-consuming. Each appraisal is unique and may require extensive evaluation.

Understanding these misconceptions can enhance the effectiveness of the appraisal review process and ensure that all stakeholders are well-informed.

Key takeaways

When filling out and utilizing the Review Commercial Appraisal form, several key considerations can help ensure a thorough and effective appraisal review process. Here are some important takeaways:

Identify the Property Clearly: Begin by accurately filling in the name, location, and type of property. This foundational information is crucial for clarity.
Understand the Purpose: Clearly define the value sought, whether it’s market value or another type. This helps guide the appraisal process and establishes a clear objective.
Assess the Report's Completeness: Ensure that the appraisal report includes essential elements such as ownership history, legal descriptions, and relevant tax information. Missing details can lead to inaccurate evaluations.
Evaluate Location Analysis: A comprehensive description of the property’s location is vital. This includes identifying trends and potential nuisances that could impact property value.
Examine Property Descriptions: The report should provide adequate descriptions of both the improvements and the site. Attention to physical features and zoning regulations is essential for accurate assessments.
Review Valuation Methods: Analyze the approaches used for valuation, such as the cost approach or income capitalization. Each method has its strengths and weaknesses, and understanding these will enhance the review process.
Conclude with Recommendations: After reviewing the appraisal, summarize your findings and provide clear recommendations. Whether you support the appraisal or suggest revisions, your conclusions should be well-founded.

By keeping these points in mind, you can navigate the Review Commercial Appraisal form more effectively, ensuring a thorough evaluation that meets the necessary standards.