Review Theory - General

Review Theory—General is the fundamental review course that all reviewers of assignments involving income-producing and other nonresidential properties should have in their educational background. It is a required course for individuals pursuing the Appraisal Institute General Review Designation (AI-GRS, Appraisal Institute General Review Specialist).

At the core of this course is the review process. Participants explore the seven steps outlined in this process as they apply to nonresidential properties. To be a reviewer, an appraiser must learn how to develop opinions of completeness, accuracy, adequacy, relevance, and reasonableness relative to the work under review. These opinions must be refined through tests of reasonableness to develop reconciled opinions of appropriateness and credibility.

The material provides a refresher on key valuation skills often required of reviewers, such as measuring financial feasibility in highest and best use analysis and various applications of the income capitalization approach. In addition, the course covers reporting reviews for income-producing property and the use of commercial review report forms, narrative reports, and oral review reports. Participants will gain practice in writing a scope of work statement for three types of assignments. They will also develop a template for a narrative review report on a property type of their choice (office, retail, apartment, etc.). By taking this course, participants will gain invaluable confidence in the fundamentals of review.

• Certified general real property appraisers
• Attorneys
• Accountants
• Government agency reviewers
• Users of appraisal services

• Distinguish between appraisal and review.
• Evaluate the necessary knowledge and skills required to complete reviews.
• Distinguish between trivial and material errors.
• Identify types of review assignments and the process employed in the reviewer’s scope of work.
• Recognize regulatory compliance issues for review appraisers.
• Identify the steps necessary to communicate the review effectively.

• A financial calculator is required. The accepted model used in the program is the HP-12C. AI education programs that require a financial calculator are developed with HP-12C keystrokes; using this model is highly recommended.
• You must be familiar with calculator operation when the program begins. Do not enroll expecting to be taught how to use a financial calculator.
• For help with the HP-12C calculator, take our online seminar Using Your HP-12C Financial Calculator.
• HP-12C calculator User’s Manual.

Recommended Documents and Texts:

• Uniform Standards of Professional Appraisal Practice (current edition)
• Appraisal Institute Standards of Valuation Practice (SVP) (current edition)
• Review Theory and Procedures: A Systematic Approach to Review in Real Property Valuation
• Appraising the Appraisal: The Art of Appraisal Review, 2nd ed.
• The Appraisal of Real Estate, 15th ed.

Other Useful Texts:

• Capitalization Theory and Techniques Study Guide, 3rd ed.
• Market Analysis for Real Estate, 2nd ed.
• Subdivision Valuation, 2nd ed.
• Scope of Work, 3rd ed.
• The Dictionary of Real Estate Appraisal, 6th ed.
• The Appraiser’s Workbook, 2nd ed. [out of print but available through online sources].