Why is it important for review appraisers to have geographic competence?

Geographic competence is crucial for review appraisers primarily because it ensures accurate property valuation. Understanding the specific characteristics of a geographic area allows appraisers to assess local market conditions, economic factors, and specific property attributes that can influence value. For instance, a review appraiser familiar with the local market will have insights into neighborhood trends, zoning regulations, and comparable property sales that a non-local appraiser might overlook.

This knowledge enhances the reliability and credibility of the appraisal, as it helps in making adjustments and interpretations that are pivotal for accurate valuation. While avoiding liability and complying with state laws are important considerations for appraisers, the central role of geographic competence directly relates to the accuracy of the property valuation itself. The impact of location is fundamental in the appraisal process, making the ability to effectively analyze local conditions essential for producing high-quality appraisal reviews.