Shawn Hyde (Canyon Valuation) has been reviewing the reports of other valuation experts for years. During a recent BVR webinar, he presented a seven-page review report (disguised, of course) that concluded that the valuation was likely incorrect. Hyde’s review pointed out five major areas in the report where either material errors were made or underlying assumptions may have led to erroneous conclusions. The review was done at the request of an attorney who wanted to know whether a second valuation should be done.

Better timing: A question from the audience: Wouldn’t it be better for the report’s author to have gotten the review before submitting it to his client? An unfavorable review may give the client second thoughts about hiring that expert again. Hyde agreed that doing a review before submitting it would be optimal but pointed out that there often is not enough time to do that. How much time should you allow for a review? It could be just a few days if there’s someone at your practice who can do it. When using an outside reviewer, it depends on the workload of the reviewer, but about two weeks is a good estimate.

A recording of the webinar, Appraisal Review—Read Between the Lines, Too! is available if you click here (free to BVR Training Passport holders).