We would like to shed a little light on the difference between a P.A.R.R. Review and a USPAP (Uniform Standards of Appraisal Practices) Compliant Reviews performed by a Licensed Appraiser.
It should be noted that P.A.R.R. Review Specialists are not Licensed Appraisers. We can not offer an alternative opinion of value. We can however point you in the right direction should your need be to have a USPAP Compliant Review completed by a Licensed Appraiser. According to many Appraisers we are not allowed to form an opinion on if we agree with a value or not because they feel that only Licensed appraisers are allowed to "Review" Appraisals according to the laws as they interpret them. However, because we are not Licensed Appraisers, we are not governed by the same rules and regulations as "Licensed Appraisers" are. Therefore in our opinion working for the Borrower, we are unregulated. However, in order to not cause problems within the appraisal community, we will not indicate in words an opinion of the appraisers estimate of value however we will still provide any additional data that we feel may be relevant to your appraisal and it's value. What conclusions you form of the data we provide vs. the data the appraiser has provided is up to you. As Bank reviewers we ordered and received Reviews daily from appraisers and it is very rare that one appraiser would blow the "Value" Whistle. But we also noticed that if good alternate comparable data was presented to an appraiser it is really no challenge to get the appraiser to alter their opinion of value. The problem is that the alternate data you provide them must be accurate and verifiable before they will consider it and for good reason, everything in their report must be able to be confirmed accurate by anyone.
With all that being said, there are some very large differences between a P.A.R.R. Review Report and a USPAP Compliant Review.
From Our experience, the Appraisers review is going to consist of a checklist of between 36-44 questions and some of the forms they use leave no room for commentary on the different items reviewed. The P.A.R.R. Review Checklist asks 105 questions which basically walks you from the beginning of the appraisal to the end. We indicate either a Red, Yellow or Green flag. These designations we find easier to understand than Acceptable, Unacceptable or N/A as provided on appraisers review forms. If there is a Red Flag we will provide proof of why the item was red flagged and if the item is Yellow Flagged we will in some cases provide proof of it being incorrect but yellow flagged items are of concern but would probably not impact the value or credibility of the appraisers report. Green Flag are indicated if no issue is found but in every case a comment would be provided in the comment area of that line indicating what was found.
At the end of some Appraisers Review forms is a place to indicate an alternate opinion of value. Most appraisers don't complete this area because it would require them to complete a separate grid of alternate comps for which the value is based.
At the end of a P.A.R.R. Review Checklist you will find a place for the reviewer to draw all the 105 previously made comments together and to comment on any alternate data located. In this comment section the reviewer will indicate if the appraisers opinion of value appears to be accurate or if there are issues that would question the integrity of the report.
Following the P.A.R.R. Checklist, we will provide copies of everything we found in our verification process. If the P.A.R.R. Report is ordered you will also receive a copy of all comps found in the area through our subscribed data sources. If you are in a Rural Area the comps will be scarce but we will provide what we can find. This is an important step so we can learn if the comps provided in the appraisal were the most similar, closest in proximity and the most recent sales available. If there are better comps found that would indicate a higher or lower value than those provided we will indicate this in the comments on the Checklist as well. We will also provide a flood cert for verification purposes and if the subject appears to be in a flood we will do what is possible to confirm this.
So, there is a big difference between an Appraisers USPAP Compliant Review vs The P.A.R.R. Checklist and Report but the biggest difference is yet to come.
Most Appraisers charge $150.00 - $300.00 for their work and can take up to 3 days to get it back. P.A.R.R. Charges $20.00 for a Basic Review (Basically the checklist and confirmation of the data in the appraisal) or $50.00 for the P.A.R.R. Report and guarantee a 24 Hour Turn Time.
Let us make sure your appraisal is Up to P.A.R.R.
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