The Appraisal Process Explained
What is an Art Appraiser
and what is the appraisal process? Let’s start by answering this question first. An appraisal is a written, impartial, expert estimate of the value of an item based upon factual evidence, market place and conclusions. The term Value also has many different meanings. For the purpose of appraisals, it is an elusive and subjective concept. It is important that the appraiser understands the purpose for which his opinion is being sought.
What Is The Definition of a Professional Appraiser
A Professional Appraiser is someone who has some special skill or ability and/or some special qualifications which are derived from training or experience. The term “Professional” denotes that there are skills or abilities which are more than the reasonable and ordinary person would possess. The work of an Appraiser is of a specialized and skilled nature. The person engaged in the occupation is expected to be committed to certain higher standards of service and principles, not only for the benefit of the client but for the community as a whole. Persons practicing in the profession are members of an association which regulates its mission and standards for the profession. There is a designation involved with a Professional Appraiser and DB Appraisals Ltd is only associated with CPPAG
Appraisers. We hold the designation of CPPA (Canadian Personal Property Appraisers) and are members in good standing with CPPAG. It is important to be dealing with a certified appraiser with a valid designation.
It may sound complicated, but an experienced, profession appraiser will make the appraisal process feel natural. We begin by asking you a series of questions related to the reason, or purpose of your request for an appraisal. We are not trying to be nosy, we need to know as much as possible about your situation in order to determine what type of appraisal you need. There are several different types of appraisals for different types of situations. Knowing your situation will allow the appraiser to give you the right evaluation for your assets. I will explain in greater detail the different types of appraisals in other upcoming blogs.
What Does An Appraiser Ask
Some of the questions that you can be expected to answer are; who is the appraisal for, what are the assets, where are the assets, is there a third party client, what is the purpose for the appraisal, when does the appraisal need to be completed by, when can we start, are there any limitations. This is just some of the questions you could be asked. The appraiser will then discuss with you the terms, conditions and offer you a quote for their services. There are many things to take into consideration when determining a price for an appraisal. First of all, of course, is the assets, how rare they are also makes a difference, are there travel expenses, and what type of appraisal is needed. By this I mean is it an On-site Inspection or a Desktop Appraisal. Both of which are Certified Appraisals.
Once the terms and fees have been agreed upon, the appraisal process begins. In either case, On-site or Desktop Appraisals
, information is gathered along with documentation and pictures of the assets in question. These will be referred to later when determining the value of the assets. Next is the research portion of the appraisal process. The appraiser has access to resources that most people either don’t have access to or are not familiar with. This may include making phone calls, performing internet searches, or getting expert advice. By finding comparables that are similar with the assets being appraised, the appraiser then begins to compile information on a spreadsheet. Once the appraiser has enough information collected, an average value is calculated taking into consideration any adjustments needed to make the appraisal accurate. Some of the adjustments that are made are for the condition of the item, the market place demand, and other unforeseen circumstances that an experienced appraiser is aware of.
The Appraisal Report
The final step in the appraisal process is the completion of the Appraisal Report
. The report has valuable information regarding the assets, the market conditions, the age and condition of the assets, schedules, and pictures, to name a few. The report also has the appraised value of the asset or assets. When it is completed by an appraiser with a professional designation, it is a legal document and is recognized in a Court of Law, by banking and lending institutions, insurance companies, lawyers, business brokers and even the CRA.
This is one example of how the appraisal process is performed. Every appraisal is different with different techniques and circumstances to deal with. An experienced, professional appraiser will know how to complete your appraisal properly and deliver you an accurate appraisal report. Let DBAppraisals Ltd be your choice for high quality, accurate appraisals at a low price. We are Appraisers and we know Appraisals.
Darryl Bilobrowka, CPPA
Owner/ President/ Appraiser at DB Appraisals Ltd