What can I expect during the appraisal process?

It is helpful to understand the basics of the professional appraisal process so you know you are getting an accurate appraisal.

A professional appraisal begins with research, which may include asking the client about the item’s history, inspecting the property in person, requesting all relevant documentation, spending time researching the property using books and databases and analyzing comparable sales.

The appraiser then prepares a report that must, at a minimum, clearly state the kind of value being determined (such as: fair market value, liquidation value, replacement value, reproduction value, etc.), explain the purpose of the appraisal (e.g., for estate planning, insurance coverage or income tax purposes), describe the property being valued, detail the procedures used to estimate the value and include a signature from the appraiser as well as details of the appraiser’s credentials.

That report then serves as formal documentation for the IRS and the legal system should the value of that item, property or business ever be questioned.