Glossary of Terms
A service level agreement defines the performance standards a valuation provider commits to meet, typically covering turn times, quality expectations, communication requirements and escalation procedures. It converts service expectations into measurable standards that both parties can monitor.
Depending on the agreement, provisions may specify how quickly an order is assigned, when the appraiser must make contact, delivery deadlines by product type, revision response times and other performance measures. Rural or complex assignments may have different standards because geography, property characteristics and research requirements can affect completion times.
For lenders, an SLA provides a framework for evaluating vendor performance against defined expectations. For an appraisal management company, it supports capacity planning, partner coverage and workflow management. Consistently missing agreed service levels may lead to remediation or other contractual consequences, making accurate order tracking an important part of performance management.