3.3. Problem Identification. The research and analyses necessary to develop credible assignment results will vary depending on the scope of work for an appraisal review assignment. For example, technical reviews may be conducted as either desk reviews or field reviews. In addition to confirmation that the report was prepared in accordance with these Standards, a desk review involves a thorough review and analysis of the information and analysis contained in the appraisal report under review and a careful examination of the internal logic and consistency. In a desk review, the review appraiser limits the examination to the information and analysis presented within the appraisal report. The data contained within the appraisal report may or may not be confirmed and the review appraiser may or may not identify additional comparative market data. 

The most significant difference between a desk review and a field review is the level of evaluation accorded the factual data presented in the appraisal report. A field review always requires at least an exterior field inspection of the subject property and often of the properties used as comparable data in the appraisal report. In addition, the data contained within the appraisal report is usually independently confirmed during the review process. A field review may be used to obtain additional market data beyond that provided by the appraiser or to resolve factual differences between two appraisals with divergent market value estimates. The field review represents the highest level of due diligence within the appraisal review practice.

The appropriate scope of work to be performed within the review process may be based on the dollar value of the property and/or the complexity of the valuation problem, as dictated by the regulatory and policy requirements of the acquiring agency. The degree of controversy surrounding a particular acquisition (or the agency’s project generally) may also play a role in determining the scope of work. 

It is critical that the review appraiser clearly identify the precise scope of work and extent of the review process for each appraisal review assignment. Terms such as administrative or technical review, desk review and field review may not be understood by all users or readers of the review, and require precise definition if used. This can be done while disclosing the mandatory assignment elements for a scope of work156 that are outlined in sections 3.3.1 through 3.3.7 below. 

If an appraisal review results in a request for corrective action by the appraiser, the review appraiser should maintain a complete file memorandum of the results of the preliminary review and the requested corrective action. The practice of maintaining only the final corrected appraisal report and the final review thereof should be avoided.