Having an appraisal completed by a licensed appraiser is not always necessarily the end of the appraisal process. Sometimes a lender will request an appraisal review by a second licensed appraiser. The purpose of the appraisal review is to verify the data and conclusions of the original appraiser. Generally, you can expect the lender to request an appraisal review, or even a second appraisal, if the loan amount request is for more than $1 million.

Some lenders are more stringent on appraisal review than others. Generally, a desk review is preferred over an on-site review as it's faster, cheaper, and less likely to bring down the appraised value of the property.

Appraisal reviews usually have a cost associated with them that the lender will pass on to the client. The lender will give the broker notice before ordering the appraisal review so that the client will not be surprised of the additional fee.

 

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