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Download Review Commercial Appraisal Form in PDF

The Review Commercial Appraisal form is a crucial document used to assess the accuracy and reliability of an appraisal report for commercial properties. It guides reviewers through various sections, including property identification, valuation methods, and final recommendations. For a thorough evaluation, complete the form by clicking the button below.

Contents

The Review Commercial Appraisal form serves as a critical tool for assessing the accuracy and reliability of an appraisal report for commercial properties. This comprehensive document begins with essential details about the property, including its name, location, and type, whether existing or proposed construction. It identifies the appraiser and outlines the purpose of the appraisal, specifying the value sought, which may include market value or other interests. The form encompasses various sections that evaluate property identification, ownership, and assessment, ensuring that key information such as legal descriptions and tax details are adequately covered. Additionally, it requires a thorough location analysis, examining regional trends, neighborhood characteristics, and potential nuisances. The property description section prompts reviewers to assess physical features, zoning compliance, and any special problems that may affect the property's value. Furthermore, the form addresses the highest and best use of the property, marketability, and feasibility, providing a structured approach to understanding the appraisal's context. Finally, it includes a valuation section that allows for a detailed critique of different valuation methods, such as the cost approach and income capitalization approach, culminating in the reviewer’s conclusions and recommendations. This form not only standardizes the review process but also promotes transparency and consistency in commercial property appraisals.

Preview - Review Commercial Appraisal Form

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) ___________________________________________________

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:

______________________________________________________________________________________________________________

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:

______________________________________________________________________________________________________________

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:

______________________________________________________________________________________________________________

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:

______________________________________________________________________________________________________________

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:

______________________________________________________________________________________________________________

may be reproduced without written consent, however, the “National Association of Review Appraisers and Mortgage Underwriter’s must be acknowledged and credited.

Section I — Purpose and Function of Appraisal

Section II — Property Identification, Ownership and Assessment

Section III — Location Analysis

Section IV — Property Description

Section V — Highest and Best Use

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:

______________________________________________________________________________________________________________

Does the report contain a certification ❐ Ye s ❐ No Does the principal appraiser make

Is the report co-signed ❐ Ye s ❐ No statement of concurrence with value

Did the principal appraiser sign the conclusion ❐ Ye s ❐ No

report ❐ Ye s ❐ No Does the report contain appraiser(s)

Did the principal appraiser personally qualifications ❐ Ye s ❐ No

inspect subject property ❐ Ye s ❐ No

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:

______________________________________________________________________________________________________________

Scope of Review: If reviewer does not concur with the soundness if conclusion, then

Read report ❐ Ye s ❐ No what is the recommended action:

Interviewed appraiser ❐ Ye s ❐ No ❐ Totally reject appraisal

Field Review ❐ Ye s ❐ No ❐ Have appraiser rework, revise, update the appraisal

Does the Reviewer concur with ❐ Have another appraisal prepared by someone else

the soundness of conclusion: ❐ Ye s ❐ No ❐ Other

Concluding Comments:

______________________________________________________________________________________________________________

Reviewer’s Signature _____________________________________________________________________________________________

Name of Reviewer __________________________________________________________________ Date ________________________

Position ___________________________________________________________________________ Department __________________

Address __________________________________________________________________________ Telephone ___________________

City, State, Zip __________________________________________________________________________________________________

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

Section VII — Other Report Requirements

Section VIII — Final Rating of Appraisal

Section IX — Reviewer’s Conclusions — Recommendations

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Document Specifics

Fact Name	Description
Purpose of the Form	The Review Commercial Appraisal form is used to assess the quality and accuracy of a commercial appraisal report.
Sections Included	The form is divided into multiple sections, including Property Identification, Location Analysis, Property Description, and Valuation.
Value Types	Users can select from various types of value sought, such as Market Value or other specific valuations.
Assumptions and Conditions	The form allows the reviewer to note assumptions and limiting conditions relevant to the appraisal.
Ownership Information	It requires details about property ownership, including owners of record and legal descriptions.
Final Rating	At the end of the review, the form provides a section for the reviewer to rate the appraisal as acceptable or unacceptable.
Governing Laws	In many states, the review process is governed by local real estate appraisal laws and standards, such as the Uniform Standards of Professional Appraisal Practice (USPAP).
Signature Requirement	The form must be signed by the reviewer, ensuring accountability and validation of the review process.

Review Commercial Appraisal: Usage Instruction

Completing the Review Commercial Appraisal form requires attention to detail and accuracy. This form serves as a structured way to assess the appraisal report for a commercial property. It is crucial to ensure that all sections are filled out correctly, as this will facilitate a thorough review process.

Identify the Project/Property: Fill in the name of the project or property at the top of the form.
Provide Location and Legal Information: Enter the address and legal description of the property.
Specify the Type of Property: Indicate whether the property is existing or proposed construction.
Enter Appraiser Details: Fill in the name, telephone number, and address of the appraiser.
Report Address: Provide the name, telephone number, and address of the individual or entity to whom the report is addressed.
Type of Appraisal Report: Check the appropriate box for the type of appraisal report: narrative, printed form, or other.
Purpose and Function of Appraisal: Specify the value sought (market value or other) and the date of value (current, future, or past).
Interests Valued: Check the relevant interests being valued, such as fee simple or leased interest.
Assumptions and Limiting Conditions: Indicate whether the assumptions are standard or consistent with real estate valued.
Property Identification, Ownership, and Assessment: Answer the yes/no questions regarding property location, ownership, legal description, and tax information.
Location Analysis: Assess whether the report adequately describes the region, city, neighborhood, and any nuisances or hazards.
Property Description: Comment on the adequacy of descriptions related to improvements and site features.
Highest and Best Use: Confirm if the property conforms to zoning and discuss marketability and feasibility.
Property Valuation: Rate the approaches to value, including cost approach, sales comparison approach, and income capitalization approach.
Other Report Requirements: Check if the report contains necessary certifications and signatures.
Final Rating of Appraisal: Provide a rating for the report format and property valuation, and include comments on any unacceptable ratings.
Reviewer’s Conclusions and Recommendations: Indicate whether you concur with the appraisal conclusion and provide any recommended actions.
Signature and Reviewer Information: Sign the form and provide your name, date, position, department, and contact information.

Learn More on Review Commercial Appraisal

What is the purpose of the Review Commercial Appraisal form?

The Review Commercial Appraisal form is designed to evaluate the quality and accuracy of an appraisal report. It serves as a checklist to ensure that all necessary components are addressed, including property identification, valuation methods, and market analysis. By using this form, reviewers can systematically assess whether the appraisal meets professional standards and provides reliable information for decision-making.

What information is required to complete the form?

To complete the Review Commercial Appraisal form, several key pieces of information are necessary. This includes:

Name and location of the property being appraised.
Name and contact information of the appraiser.
Type of appraisal report (narrative, printed form, etc.).
Value sought (market value, other).
Details about the property, such as ownership, assessments, and legal description.

Providing accurate and complete information is crucial for a thorough review.

How does the form address property valuation methods?

The form includes sections that specifically comment on various valuation approaches, such as the cost approach, sales comparison approach, and income capitalization approach. Reviewers are asked to evaluate the adequacy of data and the format used for each method. This ensures that the appraisal considers multiple perspectives and provides a well-rounded valuation of the property.

What should I do if I find discrepancies in the appraisal report?

If discrepancies are identified during the review, the form prompts the reviewer to recommend actions. Options include interviewing the appraiser for clarification, suggesting revisions to the appraisal, or even recommending that a new appraisal be conducted by a different appraiser. Addressing discrepancies is essential to ensure the integrity of the appraisal process.

How does the form evaluate the highest and best use of the property?

The form includes specific questions about whether the property conforms to zoning regulations and whether the proposed use is legally and physically possible. Reviewers must assess if the appraisal discusses marketability and feasibility. This evaluation is important, as the highest and best use analysis directly impacts the property's value.

What are the implications of the final rating of the appraisal?

The final rating section of the form allows the reviewer to indicate whether the appraisal is acceptable or unacceptable. This rating can have significant implications for financing decisions, property transactions, and investment strategies. A clear and justified rating helps stakeholders understand the reliability of the appraisal and informs their next steps.

Is there a section for additional comments or recommendations?

Yes, the form includes sections for additional comments and recommendations. This allows reviewers to provide insights beyond the checklist items. These comments can highlight specific concerns, suggest improvements, or outline any unique circumstances related to the property or the appraisal process. This qualitative feedback is valuable for enhancing future appraisals.

Who should use the Review Commercial Appraisal form?

This form is intended for use by professionals involved in the appraisal process, including appraisers, reviewers, lenders, and real estate analysts. By utilizing this form, these individuals can ensure that appraisals are thorough, accurate, and aligned with industry standards. It fosters transparency and accountability in the valuation process.

Common mistakes

Filling out the Review Commercial Appraisal form can be tricky. One common mistake is leaving out essential information. For example, forgetting to include the Name of Project/Property or the Location/Legal details can lead to confusion later. Each section needs specific details, and missing even one can make the entire review process more complicated.

Another frequent error is not checking the correct boxes. The form has several options, such as the type of property or the type of appraisal report. If you accidentally mark the wrong choice, it can misrepresent the appraisal's intent. Always double-check your selections before submitting the form.

Many people also overlook the importance of providing comments in the designated sections. Comments can clarify your thoughts and insights regarding the appraisal. Skipping this step may leave reviewers with unanswered questions, which could affect their evaluation.

Additionally, failing to provide accurate contact information is a mistake that can delay communication. Make sure to fill in the Telephone and Address fields completely. If the reviewer has questions, they need to reach you quickly.

Another common oversight is neglecting to discuss the assumptions and limiting conditions. This section is crucial for understanding the appraisal's context. If you don't provide details here, it might lead to misunderstandings about the appraisal's findings.

People often forget to review the Property Identification section thoroughly. This part requires careful attention to detail. If the property’s legal description or ownership history is incorrect, it can throw off the entire appraisal process.

Many individuals also fail to consider the Highest and Best Use section adequately. This section requires a thoughtful analysis of the property's potential. Ignoring this could lead to an inaccurate assessment of the property's value.

Lastly, some reviewers rush through the final rating of the appraisal. This section is essential for summarizing your thoughts and providing a clear conclusion. Take your time to ensure that your ratings reflect your true assessment of the appraisal's quality.

Documents used along the form

The Review Commercial Appraisal form is a crucial document in evaluating the value of a property. However, several other forms and documents are commonly used alongside it to provide a comprehensive understanding of the property and its appraisal. Below is a list of these documents, each described briefly.

Appraisal Report: This document provides a detailed analysis of the property’s value, including methodologies used, comparable sales, and market trends. It serves as the foundation for the review process.
Property Inspection Report: This report includes observations made during a physical inspection of the property. It highlights the condition, improvements, and any issues that may affect value.
Market Analysis Report: This document analyzes current market conditions, trends, and forecasts. It helps to contextualize the appraisal within the broader real estate market.
Sales Comparison Worksheet: This worksheet lists comparable properties that have recently sold. It provides a basis for comparing the subject property’s value against similar properties.
Income and Expense Statement: Often used for investment properties, this statement outlines the income generated by the property and its operating expenses. It aids in determining the property’s cash flow and investment potential.
Zoning Verification Letter: This letter confirms the zoning classification of the property and any restrictions that may apply. It is essential for understanding the legal use of the property.
Title Report: This document details the ownership history and any encumbrances on the property, such as liens or easements. It is vital for assessing the legal standing of the property.
Environmental Assessment Report: This report evaluates potential environmental hazards associated with the property. It is important for identifying any risks that could impact property value.
Lease Agreements: If the property is leased, these agreements outline the terms and conditions of the lease. They are important for understanding the income potential and obligations related to the property.

These documents collectively support the appraisal process, ensuring that all relevant factors are considered in determining a property's value. Each document plays a specific role, providing necessary insights into various aspects of the property and its market environment.

Similar forms

The Review Commercial Appraisal form shares similarities with the Appraisal Report form. Both documents serve to evaluate the value of a property. The Appraisal Report outlines the methods and data used to arrive at a property’s value, while the Review Commercial Appraisal form assesses the accuracy and completeness of that report. Each form includes sections that require detailed property descriptions, ownership history, and valuation methods, ensuring that the appraisal process remains thorough and transparent.

Another document akin to the Review Commercial Appraisal form is the Property Condition Assessment (PCA). A PCA evaluates the physical condition of a property and identifies any issues that may affect its value. Like the Review Commercial Appraisal form, the PCA includes sections for property description and analysis of findings. Both documents aim to provide a comprehensive understanding of the property, albeit from different perspectives—value versus condition.

The Comparable Market Analysis (CMA) is also similar to the Review Commercial Appraisal form. A CMA helps determine a property's value based on recent sales of similar properties in the area. Both forms require data collection and analysis, focusing on market trends and property characteristics. The CMA serves as a tool for real estate agents, while the Review Commercial Appraisal form is used by appraisers and reviewers to ensure the appraisal's reliability.

The Commercial Lease Agreement shares similarities with the Review Commercial Appraisal form in that both documents consider property value and usage. A lease agreement outlines the terms under which a property can be rented, while the appraisal review assesses the value of that property. Both documents require an understanding of the property’s market and legal aspects, ensuring that all parties involved are informed of their rights and obligations.

The Loan Application form is another related document. This form is used by potential borrowers to apply for financing, often requiring an appraisal as part of the approval process. The Review Commercial Appraisal form evaluates the appraisal submitted with the loan application, ensuring that the property value aligns with the loan amount requested. Both documents are crucial in the lending process, focusing on property valuation and financial risk assessment.

The Title Report is similar in that it provides essential information about a property's ownership and any claims against it. The Review Commercial Appraisal form may reference the title report to confirm ownership details and assess any encumbrances that could affect value. Both documents are vital in real estate transactions, ensuring that all relevant factors are considered before finalizing a deal.

The Environmental Site Assessment (ESA) also bears resemblance to the Review Commercial Appraisal form. An ESA evaluates the environmental condition of a property, identifying potential contamination or hazards that may impact its value. Both documents require thorough investigation and analysis of the property, aiming to protect stakeholders from unforeseen liabilities related to environmental issues.

The Property Tax Assessment Notice is another document that shares commonalities with the Review Commercial Appraisal form. Both deal with the valuation of property, though the tax assessment focuses on determining property taxes owed. The Review Commercial Appraisal form may reference tax assessments to understand the property's value in the context of local tax rates. Both documents emphasize the importance of accurate property valuation for financial obligations.

Finally, the Market Study Report is similar to the Review Commercial Appraisal form in that it analyzes market conditions affecting property values. A Market Study provides insights into trends and demographics that can influence real estate prices. Both documents require a comprehensive understanding of market dynamics and property characteristics, ensuring that appraisals and investment decisions are well-informed.

Dos and Don'ts

When filling out the Review Commercial Appraisal form, consider the following guidelines:

Do ensure all sections are completed accurately.
Do provide clear and concise comments where required.
Do check for any missing signatures or certifications.
Do confirm that all relevant property details are included.
Don't leave any questions unanswered unless marked as N/A.
Don't use vague language; be specific in your assessments.
Don't submit the form without a final review for errors.

Misconceptions

Understanding the Review Commercial Appraisal form can be challenging, and several misconceptions may arise. Here are nine common misunderstandings:

The form is only for existing properties. Many believe this form is limited to existing properties, but it can also be used for proposed constructions. The form allows for appraisal reviews of both categories.
Only the appraiser's opinion matters. While the appraiser's insights are crucial, the review process incorporates feedback from various stakeholders, including the reviewer and other experts, to ensure a comprehensive evaluation.
The form is too complex for a layperson to understand. Although the form contains technical details, it is designed to be accessible. Users can grasp its purpose and function with careful reading and consideration.
All appraisals are the same. Each appraisal is unique, reflecting the specific property, market conditions, and valuation methods. The Review Commercial Appraisal form captures these differences, facilitating tailored assessments.
The form is only for commercial properties. While it is primarily intended for commercial properties, the principles and processes can apply to various types of real estate, including mixed-use and residential properties.
A negative review means the appraisal is invalid. A negative review does not automatically invalidate an appraisal. Instead, it highlights areas for improvement or further analysis, ensuring a more accurate valuation.
The reviewer must have a specific certification. While it is beneficial for reviewers to have relevant qualifications, the form does not mandate a specific certification. Experience and knowledge in appraisal practices are often sufficient.
The form is only useful for lenders. Although lenders frequently use this form, it is also valuable for property owners, investors, and real estate professionals who want to ensure accurate property valuations.
The Review Commercial Appraisal form is outdated. Some may think the form lacks relevance due to changing market conditions. However, it is regularly updated to reflect current standards and practices in the appraisal industry.

By dispelling these misconceptions, individuals can better navigate the Review Commercial Appraisal form and utilize it effectively in their real estate endeavors.

Key takeaways

Identify the Property Clearly: Start by filling out the name of the project or property accurately. This sets the stage for the entire review process.
Understand the Purpose: The appraisal can serve different functions, such as determining market value or assessing future potential. Make sure to select the appropriate value sought in the form.
Review Location Analysis: Pay close attention to how well the report describes the property's location. This includes understanding trends and identifying any nuisances or hazards that could affect value.
Assess Property Description: Evaluate the report's description of the property's physical features and improvements. A thorough description can reveal vital information about the property's condition and potential issues.
Evaluate Valuation Approaches: The form includes different methods for determining value, such as the cost approach and income capitalization. Review these sections carefully to ensure they are well-supported and logical.
Conclude with Recommendations: At the end of the review, provide your conclusions and recommendations. If you disagree with the appraisal's conclusions, clearly state your reasoning and suggest next steps.