Clearly state the kind of value being estimated, such as fair market value, replacement value for insurance purposes or liquidation value.
Describe the property being valued.
Describe the procedures used to estimate the value, such as analysis of comparable sales.
Include the effective date of the valuation.
Stipulate that the appraiser has no financial interest in the property being appraised.
Be signed by the individual who made the appraisal and who is responsible for the validity and objectivity.
Include the appraiser's qualifications to conduct the appraisal.
IN CHOOSING AN APPRAISER, LOOK FOR SOMEONE WHO:
Is certified by a professional association, which requires on-going training and adherence to educational and ethical standards.
Has been tested in appraisal theory, principles, ethics and the law.
Adheres to The Appraisal Foundation's Uniform Standards of Professional Appraisal Practice ( USPAP ).
Does not base their fee for an appraisal on a percentage of the appraised value of the items.
The appraiser should preferably charge by the hour or will sometimes negotiate a set fee for the entire appraisal job.
Consults with other experts when necessary since no appraiser is an expert in all fields.
THE APPRAISAL PROCESS
EXAMINATION
The appraiser meticulously examines all property, evaluating characteristics, noting condition, obtaining measurements and taking photographs. The time spent in this phase is considered "On-Site Time".
PHOTOGRAPHS
Digital photographs are taken to document your property, comply with IRS regulations, and to aid with research. Photographs are included in the appraisal report.
RESEARCH
The appraiser researches marks and labels, verifies dates, locates comparable items and selling history, investigates appropriate markets and consults other experts, when necessary. This approach produces an accurate report that fully protects you and your property. This phase is considered "Research Time".
REPORT
The Appraisal Report is written in compliance with the International Society of Appraisers' ( ISA )
Appraisal Report Writing Standards, American Society of Appraisers' guidelines and Uniform Standards of ProfessionalAppraisal Practice ( USPAP ). The report includes a cover document detailing the process followed, definitions of values used, a list of items with descriptions, photographs and the appraiser's qualifications. The report is typed and bound.
