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 order, review or use for underwriting a real estate loan. Get insight on what regulators expect from banks, internal bank policy and process, the appraisal process and scope of work. And as a bonus, learn how to confidently read a residential appraisal report and be able to decipher red flags before they become problems.
This four-part training can be delivered onsite or remote. Please call or email today for more information and a proposal!
Part A: Engaging Appraisers: Compliance with the 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: 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 C: 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. As a reviewer, recognize the focus vis-a-vis: whether the report's quality and quantity of data is appropriate and wheter the value conclusion is credble.
Part D: Single Family Residential-Understanding the URAR Report
Learn how appraisers document their opinion of market value using the sales comparison approach, how they select comparable sales, and rationae/procedures for making adjustments. Identify the steps needed to complete a real estate appraisal, identify all elements recorded on a URAR report, and understand the impact of rules on appraiser independence.