Appraisal Review Checklist Page 4
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8Appraisal Review Checklist
Conventional Conforming Transactions
Appraisal Section
Answer
Action Required
IMPROVEMENTS
If no, appraiser must explain discrepancies, and
1
Does the General Description, Design
Yes
No
N/A
A revised appraisal report must be provided.
Amenities, Car storage, etc. match the
photos of the subject property?
If no, appraiser must comment.
2
Are there acceptable reasons provided for
Yes
No
N/A
An additional level of review/justification is
the difference between Year Built and
required.
Effective Age?
If no, loan is not saleable.
3
Are Exterior and Interior materials in
Yes
No
N/A
average or better than average condition?
If yes, appraiser must comment, and
4
Is there evidence of Foundation
Yes
No
N/A
Review/apply the specific investor’s requirements
settlement, dampness, or infestation?
regarding inspections needed.
If no, appraiser must explain discrepancies, and
5
Do the following items match the
Yes
No
N/A
A revised appraisal report must be provided.
information included in the Comparable
Sales Approach section?
Design/Style
Actual Age
Condition
Heating/Cooling
Amenities
Car Storage
Finished Area Above Grade room
count and GLA
Additional features (energy efficient
items, etc.)
If yes, appraiser must explain, and
6
Are any functional utility issues noted?
Yes
No
N/A
Comps in the Sales Comparison Approach must
(e.g., have to go through one bedroom to
be adjusted accordingly.
get to another bedroom, or only bathroom
is on a different floor than the bedrooms)
If yes, appraiser must explain, and,
7
Are there any Physical Deficiencies (e.g.,
Yes
No
N/A
All necessary repairs must be completed prior to
roof leaks, water seepage, etc.), or
closing, and
Adverse Conditions (e.g., environmental
Obtain an “Appraisal Update and/or Completion
issues, etc.) affecting livability, soundness,
or structural integrity of the property?
Report” (1004D) with photos.
If no, appraiser must explain; loan probably is not
8
Does the property conform to the
Yes
No
N/A
saleable.
neighborhood?
SALES COMPARISON APPROACH
If no, appraiser must explain discrepancies, and
1
Do the first two lines (re: # of avail comps
Yes
No
N/A
A revised appraisal report must be provided.
and sales prices) confirm the information
included in the Neighborhood section?
If no, appraiser to comment; may need additional
2
Are comps within close proximity of sub-
Yes
No
N/A
comp(s).
ject based on neighborhood characteristics
(e.g., Urban = < 1 mile, Suburban = 1 - 3
miles, or Rural = over 3 miles)?
If yes, appraiser to comment; may need additional
3
Do the comps located farther away from
Yes
No
N/A
comp(s).
the subject have higher sales prices than
the closer comps?
If no, appraiser to comment; may need additional
4
Does the sales price of the closed sale
Yes
No
N/A
comp(s).
comps bracket the appraised value?
If no, appraiser must comment, and
5
Are Data Source(s) and Verification
Yes
No
N/A
A revised appraisal report must be provided.
Source(s) used acceptable?
If yes, appraiser must comment.
6
Are Sale or Financing Concessions listed
Yes
No
N/A
for any of the comps?
If no, appraiser must comment.
7
Are comps dated within 6 months of the
Yes
No
N/A
Note: If comps sold > 12 months prior to the appraisal
date of the appraisal?
date, loan probably will not be saleable.
If yes, appraiser must comment, and
8
Did the appraiser give time adjustments?
Yes
No
N/A
Appraiser to address declining market concerns.
If yes, appraiser must comment, and
9
Do comps that sold longer ago have a
Yes
No
N/A
Appraiser to address declining market concerns.
higher sales price than more recent
comps?
If yes, appraiser must comment, and
10
Does the reported days-on-the market of
Yes
No
N/A
Appraiser to address declining market concerns.
the comparables indicate a marketing time
over six months?
If no, appraiser must explain discrepancies, and
11
Are the Days-on-the-Market of the
Yes
No
N/A
A revised appraisal report must be provided.
comparables consistent with the
appraiser’s range of marketing time
included in the Neighborhood section?
Appraisal Review Checklist
Page 4
August 17, 2011
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