What do appraisers have to do with me?
Appraisers:
- are involved in the taxes you pay on your home
- determine the value of property for insurance purposes and supply information to assist in the settlement of damage claims
- work with banks to determine whether banks should make loans (for mortgages, improvement loans, business loans, etc.)
- are involved in prices paid for homes, businesses, farms and land required for public works projects
- determine the value of property when it is donated to charity (for doing your taxes)
What is an appraisal?
An appraisal is a comprehensive report giving an opinion of the value at a given point in time of any sort of property. This can be a business, a diamond, an electricity-generating windmill, a sculpture, a building, or anything else you can think of.
To give an accurate appraisal, the professional appraiser begins with research which could include:
- asking clients about the history of the property;
- carefully inspecting the property itself and any relevant documentation;
- spending hours researching the property in books and databases; and
- analyzing comparable sales, if appropriate.
After the research is completed, the appraiser prepares the appraisal report that:
- clearly states the kind of value being determined, such as fair market (used for taxes), replacement (used for insurance coverage), liquidation (used for bankruptcy or business dissolution) etc.;
- describes the property being valued;
- details the procedures used to estimate the value;
- includes the signature of the appraiser responsible for validity and objectivity; and
- specifies the personal qualifications of the appraiser.
Why would I have an appraisal done?
- To decide how much to insure something for
- You're donating an item to charity. How much is it worth on your taxes?
- To know how much to ask for something when you want to sell it
- To decide how much to invest in caring for an item (Should I have it restored?)
- For estate planning
- How much will estate taxes be?
- How can I split things up fairly if I don't know what they're worth?
- To prove value in all kinds of legal cases, to the IRS, or to insurance companies
- For my business:
- To know what it's worth
- To understand where my company fits in the competitive landscape
- To know what it's financial condition is
- To be able to make fast decisions on buying, selling and mergers
- To be able to make good business dissolution decisions
How do I find somebody to do an appraisal?
- Why pick a professional appraiser?
- Don't believe what you see on TV! Professional-quality appraisals can't be done in 10 minutes or less and they're not free. Like any other profession, you get what you pay for.
- Accredited appraisers give you the most accurate appraisal because they take the time to research what they're appraising and its market value.
- Accredited appraisers are highly trained and follow strict ethical professional standards
- An accredited appraiser follows professional standards designed to promote an accurate, objective opinion of value
- Why an ASA accredited appraiser?
- ASA-accredited appraisers provide the best valuation expertise available on the market, and their appraisals provide unmatched credibility in all legal proceedings.
- ASA members earn their accreditations only after completing a rigorous evaluation process that requires years of study, dedication and commitment.
- ASA is the oldest and only major appraisal organization representing all of the disciplines of appraisal specialists. The society originated in 1936 and incorporated in 1952.
- ASA along with other leading appraisal societies founded the Appraisal Foundation to set the generally accepted and recognized standards of professional appraisal practice in the United States. The Appraisal Foundation was recognized by Congress as the source of Appraisal Standards and Appraiser Qualifications.
- ASA Accredited appraisers follow both the professional standards set forth by the Appraisal Foundation and ASA's own stringent Code of Ethics and Principles of Appraisal Practice.
- What kind of appraiser do I need?
- The type of item you want appraised determines the type of appraiser you need.
- Need an appraisal you already have reviewed, or someone to manage a large appraisal project? - you need an Appraisal Review and Management appraiser
- Diamond rings, Grandma's jewelry, or any other gems or jewelry - you need a Gems and Jewelry appraiser
- Equipment or things to actually do your business (milling equipment, windmills, farm animals, green-tech, high-tech, you name it), mines and quarries, oil and gas and public utilities, or technical equipment like planes and yachts - you need a Machinery and Technical Specialties appraiser
- Art, antiques, all kinds of collectibles, cars, guns, home contents - you need a personal property appraiser
- Real estate, all kinds - you need a Real Property appraiser
- Still not sure? We'll be happy to help. While we have no appraisers on staff at our headquarters, our service representatives can help you decide what type of appraiser you need and give you names and contact information for ASA Accredited appraisers. Email us at asainfo@appraisers.org or call us. You can reach our service representitives from 9:30 a.m. until 5:00 p.m. on Monday and from 9:00 a.m. until 5:00 p.m. Tuesday through Friday, Eastern Time at (800) 272-8258 (U.S. and Canada) or (703) 478-2228.
- Where can I get the names of professional appraisers
- ASA has approximately 3.500 Accredited appraisers throughout the world representing all types of appraising.
- The best way to find an ASA Accredited appraiser is through our "Find an Appraiser" web page.
- If you don't find what you're looking for on our website, we'll be happy to help. While we have no appraisers on staff at our headquarters, our service representatives can help you decide what type of appraiser you need and give you names and contact information for ASA Accredited appraisers. Email us at asainfo@appraisers.org or call us. You can reach our service representitives from 9:30 a.m. until 5:00 p.m. on Monday and from 9:00 a.m. until 5:00 p.m. Tuesday through Friday, Eastern Time at (800) 272-8258 (U.S. and Canada) or (703) 478-2228.
- An accredited appraiser follows professional standards designed to promote an accurate, objective opinion of value
- How can I decide which appraiser to work with?
- Don'ts:
- Never use the services of an appraiser who offers to purchase what they appraise!
- Never use the services of an appraiser who charges a percentage of the item's value for the appraisal.
- Don't use an appraiser who has either a current or future interest in the value of the item unless it is disclosed to you and disclosed in the appraisal report
- Do's:
- Ask the appraiser about his or her professional accreditations and how they qualify for those accreditations (Here's how ASA accredited appraisers qualify).
- Ask for documentation of accomplishments: An ASA-accredited appraiser will supply consumers with a qualifications statement or résumé that includes his or her job history.
- Ask for references / recommendations from current and former clients, such as insurance companies, banks, museums, government agencies, homeowners, etc.
- Ask about recognitions received by the appraiser for professional activities.
- Interview the appraiser and ask how the appraiser's experience and knowledge or expertise relates to the particular appraisal you need performed.
- Make sure you understand what the appraisal report you will get includes. It should have at least:
- the kind of value being determined, such as fair market (used for taxes), replacement (used for insurance coverage), liquidation (used for bankruptcy or business dissolution) etc.;
- a description of the property being valued;
- details of the procedures used to estimate the value;
- the signature of the appraiser responsible for validity and objectivity; and
- the personal qualifications of the appraiser.
- Make sure all your fee-related questions are answered before you sign an agreement.
- Other questions you can ask:
- What is your general appraisal and educational background?
- What specific experience do you have with the type of item I want to have appraised?
- Are you a member of a professional appraisal society? Does that society teach, test and accredit?
- Do you hold a special designation issued by an appraisal society?
- Is that designation based on successfully completing written examinations?
- How long ago did you take the examinations?
- What continuing education have you undertaken to keep up-to-date in the field?
- Has the appraisal society you belong to adopted a mandatory reaccreditation program to ensure that your education and knowledge are current?
- What do you charge for your services, and on what do you base your fee?
- Are you required by your appraisal society to adhere to the Uniform Standards of Professional Appraisal Practice (USPAP)?
Need to recruit an appraiser for ongoing work or a large job?
Click here to search ASA's pool of talented, accredited members!
Click here to post your opportunity and reach qualified members quickly and easily!
What does an appraisal cost and how long does it take?
- It depends on the nature of the property. A proper, accurate valuation of personal property or gems and jewelry can take several weeks, while a professional appraisal of a large business or complex machinery and equipment can take several months. The cost varies significantly as well.
- Ethical appraisers NEVER charge a percentage of the item's value.
- Fees are set by the individual appraiser:
- Fees are often based on an hourly, half-day or full-day basis.
- Fees are somewhat affected by geography.
- Experience and expertise also contribute to the fee.
- Most appraisers charge for research time. There may also be costs for expert consultation, photography, word processing, etc.
- Ask the appraiser to give you a fee schedule or estimate.
- Many professional appraisers offer a free estimate of the time and cost involved in an appraisal before they accept a job.
- Make sure all your fee and schedule related questions are answered before you sign an agreement.
- The agreement should define the scope of work, when the report will be delivered, the type of value, and other important items about the assignment.
What do I get?
You will get an appraisal report that:
- Clearly states the kind of value being determined, such as fair market (used for taxes), replacement (used for insurance coverage), liquidation (used for bankruptcy or business dissolution) etc.;
- Describes the property being valued;
- Details the procedures used to estimate the value; such as:
- Analysis of comparable sales;
- Estimation and analysis of income (if applicable);
- Relation of the appraisal values to a specific point in time (e.g. fair market value of the real estate as of January 1, 2009)
- Includes the signature of the appraiser responsible for validity and objectivity; and
- Specifies the personal qualifications of the appraiser.
How long is my appraisal "up-to-date"?
It depends on the nature of the property and market conditions. While many appraisers suggest an update every two to three years, you should ask for a recommendation during the initial valuation.
Of course, the most important appraisal is the first one. Property should be professionally appraised before disaster strikes. Once property is lost, stolen or destroyed, it is much more difficult to determine value. Insurance companies demand credible, professional appraisals before reimbursement is approved—photos and memory are not enough.
Generally, "updating" an appraisal requires a change only in the value conclusion of a report; no change is needed in the descriptive portions of the report unless, of course, there are there are changes to the item(s) being appraised.
Several decades ago appraisals were considered "current" for at least 10 years. Current market conditions have drastically reduced this estimate.
A professional appraiser can provide an informed and helpful recommendation as to the necessity and frequency of appraisal "updates."
What if I'm not happy with what I get?
One of ASA's primary objectives is to ensure ethical practices and procedures on the part of its members. The society is diligent in its efforts to strengthen and uphold the Principles of Appraisal Practice and Code of Ethics (the code of conduct to which all members must subscribe) in order to protect the client.
ASA has developed a mechanism for the enforcement of the Code of Ethics whereby clients may file written complaints directly with the International Headquarters of the American Society of Appraisers if they feel that an appraisal rendered by an ASA member violates sound professional practice. ASA has permanent internal procedures for processing all documented grievances, assuring due process. Sanctions against members, if found to be in violation of the Code of Ethics, range from censure to expulsion with loss of professional designation.
If you wish to file a complaint, please mail your written complaint to:
American Society of Appraisers
Attention: Jane Grimm, Executive Vice President
555 Herndon Parkway, Suite 125
Herndon, VA 20170
If you have any questions regarding the complaint process, please contact Susan Fischer at sfischer@appraisers.org. or 703-733-2136.