Definition / Objective
Appraisal Review – An objective exercise to measure the appraisal versus established standards and logic. Typically, this service is provided for financial institutions or audit firms that are in need of an expert to review work product delivered. This can be done in concert with the efforts of the audit firm in a seamless process that is designed to facility accurate and timely audits.
Since LOGAN maintains the top credentials in appraisal globally, and because of the quantity of appraisal work generated in the respective LATAM markets, LOGAN is well positioned to review the work of any other appraisal firm. LOGAN has worked with some of the top audit firms in the world and is consistently hired to review appraisals of multinational companies form the United States and Europe.
“The act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal. The subject of the review may be all or part of an appraisal report or a review report.” — USPAP Standard Rule 3
Property Types / Opportunity
Report
Desk review
Full review (includes inspection)
Validation of values
Methodologies
Input benchmarking
Approach selection
Methodology
Value reasonability
Asset Classes
Regional shopping centers
Super-Regional shopping centers
Hotels and Resorts
Land and Agriculture
Approaches, Relevance & Methods / Solution
Cost
Sales comp or market approach
Income capitalization
DCF
Important Inputs / Key Features
Methodologies used
Comparable sales (confirmed, supported)
Rent comps (price, term, increments)
Cap rates and discount rates
Reconciliation and methodologies relied upon
Recent Trends
Lack of certified appraisers in Latin America
Difficult to obtain confirmed sales or offers in Latam
New institutional assets being delivered – superior methodologies such as income approach are necessary to value these asset classes
New asset classes being developed in Latin America that are new, few valuation firms have experience in valuing them (multifamily, self-storage, data centers, cell towers).
IFRS and IVS are relatively new in Latin America, some appraisals do not comply with the standards
Deliverable Structure & Scope
Appraisal Review
Appraisal Review
Review of scope of work
Regulatory compliance verification
Evaluation of appropriateness,
accuracy, and quantity of evidence
Benchmark ranges for data presented and value conclusions
Conclusion of reasonability
Notable Markets & Corridors
Colombia
Bogota
Medellin
Cali
Mexico
CDMX, Mexico City
Guadalajara
Nuevo Leon, Monterrey
Peru
Miraflores
San Isidro
Santa Cruz
Central América
San Jose, Escazú
Panama City
Guatemala
El Salvador
