APPRAISALS
Any one item may have different values every time you ask the question, "What is it worth?" The reason required for the appraisal assignment will dictate the comparable market and the value conclusion.
The Appraisal Process
The Examination: Each piece of property to be included in the appraisal report is meticulously examined by the appraiser. The appraiser observes the characteristics of each item, noting condition, obtaining measurements and taking photographs. When the item cannot be examined due to loss, damage, or theft, the appraiser can "reconstruct" the item based upon critical assumptions obtained from interviews and previous photographs, etc. This information is recorded on worksheets, entered into a database, and/or recorded on cassette or video tape.
The Research: Value conclusions for appraisals are based upon comparable sales analysis for each item. Research time is the time taken to identify marks and labels, to verify dates, to locate comparable items, to investigate markets, and to consult experts as needed. This approach produces an accurate report that fully protects you and your property. Research time can be limited according to your requirements.
The Report: The appraisal report consists of two sealed and bound copies of the completed appraisal. Included in the report is a cover letter detailing the approach taken, as well as definitions of the values used. This is followed by an itemized list of the property appraised, photographs and/or digital images of the items, and the appraiser’s qualifications.
Photographs: Photographs and/or digital images are taken to document the item's existence and aid in the research. Photographs and/or digital images taken for the assignment (but not used for report per se) will remain in the client's file or delivered to the client per the client's request.
A professionally prepared appraisal report has a cover document explaining the type of value being sought and how the appraisal is to be used, the methodology and resources relied upon, an accurate description of the property itself, the date and location of the inspection, the effective date of the values determined, a statement that the appraiser has no interest in the property (or a statement that any such interest is disclosed in the report), and the appraiser's qualifications and signature.
Warning
DO NOT accept an appraisal if:
- It is hand-written or unsigned
- The fee is contingency-based
- The purpose and the function are not stated
- The appraiser is not willing and/or not able to defend it in court and/or mediation (per the appraiser's current fee schedule for time spent in court/mediation)
There may be times when your value question does not require a formal written appraisal. In these situations, we can offer our clients a verbal approximation of value. A verbal approximation of value is not a professional appraisal. A professional appraisal is a written report which is signed by the appraiser and which requires market and value analysis and research, elements lacking in a verbal approximation of value. The verbal approximation of value conclusions are based on the appraiser's best judgment and opinion and are not a representation or warranty that the items will realize those values if offered for sale at retail, estate sale.