Appraisal Review Process

Appraisal Formats and Contents - Appropriate formats and the required contents of each appraisal are described in detail in our Appraisal Requirements Checklist. Some "form" reports are acceptable for specific property types, but Complete Summary narrative reports are more appropriate for most property types. Any questions regarding the format or content of a report should be discussed with North Penn Financial's real estate department before the appraisal process begins. An executed Checklist must be included with each appraisal, so the appraiser should review it before the assignment is started.

Supporting Documents - The appraisal should be accompanied by appropriate documentation (i.e. agreement of sale, rent roll, commercial lease, etc.) as described on the Checklist. The lack of relevant documents will delay the review process.

Field Reviews - The initial review of an appraisal may result in a request for a field review, a process that is controlled by North Penn Financial as described on our Field Review Checklist. The applicant pays the fee for the field review.

Effective Dates - The effective date of an appraisal must be within six (6) months of the date of closing. If the effective date is between six and nine months of the date of closing, the appraisal may be updated by the original appraiser (see Update Appraisal Checklist in the Forms section of the web site). If the effective date of the appraisal is more than nine months from the date of closing, a new appraisal is required.

Selection of an Appraiser - North Penn Financial does not maintain a list of "Approved" appraisers, but does maintain a nationwide database of "Preferred" appraisers that have submitted satisfactory reports in the past. The appraisals that are submitted by Preferred appraisers are still reviewed and subject to the Appraisal Requirements Checklist; the preferred appraisers have demonstrated, however, the ability to submit a report that meets the North Penn Financial standards.

The appraiser must be General-Certified and have experience with the type of property being analyzed. These guidelines are described on the Appraisal Requirements Checklist. North Penn Financial will assist the broker in selecting a Certified General appraiser from one of two sources: 1) the North Penn Financial Preferred Appraiser list or 2) a designated member of the Appraisal Institute. All appraisers are required to contact the appropriate North Penn Financial Real Estate Analyst to discuss the format, content, and methodology of the appraisal prior to initiating the assignment. For information on how North Penn Financial selects an appraiser who is appropriate for an assignment, a broker may contact a North Penn Financial Account Executive.