Section 3.2
3.2. Types of Appraisal Reviews.Federal acquisitions generally involve two types of agency appraisal reviews: a technical review, which can only be developed and reported by an appraiser, and an administrative (or compliance) review, which may be performed by a non-appraiser.153
A technical review is developed and reported by an appraiser in accordance with these Standards, which require conformity with USPAP and with agency polices, rules, and regulations. In completing a technical review, the review appraiser renders opinions on the quality of an appraisal report and whether the opinion(s) of value are adequately supported and in compliance with all appropriate standards, laws, and regulations relating to the appraisal of property for federal acquisition purposes. In addition, as a part of a technical review, the review appraiser may reach a conclusion regarding whether to approve (or recommend approval of), modify, or not accept or modify the conclusions presented in the appraisal report under review. If appropriate to the assignment, the agency review appraiser performing a technical review may render a separate opinion of value. However, if the review appraiser renders a separate opinion of value, the value opinion must be developed and reported in accordance with the appraisal development and content requirements for these Standards. The development of such opinions and further review of the initial reviewer’s opinion of value and the support therefore may also be subject to the pertinent agency’s policies, rules, and/or regulations.
An administrative review may be performed by an appraiser or a non-appraiser and is sometimes referred to as a compliance review. The content and scope of an administrative review will vary with the intended use and intended user of the administrative review. Some federal agencies have specific policies regarding the development and use of administrative reviews. An administrative review may include confirmation that the appraisal report conforms to contract/assignment letter requirements and to applicable federal law for federal land acquisition appraisals, and/ or that the report includes a signed certification stating that the report has been prepared in compliance with these Standards. The administrative reviewer may also verify if the correct subject property has been appraised, if photographs of the subject property and comparable market data are included, if the analyses reflect the government’s most recent project plans, and if the factual data and the mathematics presented in the appraisal report are correct. The administrative reviewer shall not, however, form an opinion regarding the quality of the analysis, judgment, or opinion(s) of value contained within the appraisal report under review.154 As such, administrative reviews do not meet the requirements of 49 C.F.R. § 24.104. Administrative reviewers often use a checklist as a guide in making their determinations; a model checklist is provided in the Appendix of these Standards for convenience.155