Commercial Real Estate Education
Appraisal Engagement, Appraisal Review and Evaluation
Appraisal Institute’s program was specifically designed for lending, credit, audit or risk management staff who handle appraisal engagement, review, and evaluation.
This four-part training can be delivered onsite or remote. Please call or email today for more information and a proposal!
Part A: CRE Engagement: Federal Banking and Appraisal Regulations
Cover federal appraisal regulations and federal banking regulations governing single-unit (family) residential and commercial real estate. Learn about USPAP and its three rules for appraisers—Ethics Rule, Competency Rule, and Scope of Work Rule. Learn how to properly select an appraiser, minimum appraisal standards, and review requirements. Learn how to order an appraisal, monitor a vendor panel, which documents banks need to provide to the appraiser and much more!
Part B: The Art of Commercial Appraisal Review
Gain a detailed description of the review process, including what a review is, who should do an appraisal review, how to determine if a report is a review, purpose of the appraisal review, and level of competence assumed under USPAP’s Competency Rule. Scope of work of the review (Steps 1-6) is covered in detail and examples are provided.
Part C: Sales Comparison Approach -- A Case Study
Covers use of sales comparison approach in completing an appraisal review or an evaluation of a land parcel. Introduces approach and discusses its usefulness for different types of properties. Scope of work issues are also introduced, including the number of sales required, client requirements, level of data confirmation, level of inspection, and level of comparison and analysis. Case study also discusses steps of the review process and uses the Engagement Proposal / Reviewer’s Checklist.
Part D: Income Approach – A Case Study
Discuss the income approach and types of properties for which income approach is used. Scope of work issues are discussed in relation to the appraisal, evaluation, and appraisal review. Case Study demonstrates how to estimate income from all sources, adjust for market vacancy and collection loss, deduct expenses, and use direct capitalization.