10 Questions To Ask Your Appraiser

In most service based industries, the most frequently asked question is “how much does it cost for that product”? In many cases, the price is easily identifed however for real property appraisals, no two properties are alike and likewise there are no two appraisal reports the same. It human nature to ask this question however it truly depends on a vast number of circumstances. Prior to completing a quote, an astute appraiser will ask this prospective client a series of qualifying questions regarding the property. Please keep in mind that these are general questions but are not limited to:

Where is the property located?

What is the purpose of the appraisal report?

Who are the reports being addressed to / prepared for and who will be the client relying upon the final report?

How soon do you require the report?

All of these items are critical for quotation process. As a rule of thumb, the quicker you require the report, the higher the fee. Many companies implement a rush disbursement fee.



Now let’s change perspectives. If I was a client requiring a valuation, I would ask the appraiser the following questions:


Is the appraiser licensed and/or designated? If they are, it generally implies that this individual has gone though a grueling educational and recertification process.

How much experience does he/she have on appraising properties of similar quality within this region for the requested purpose? Experience matters. We all know people who are a jack of all trades but a master of none! Make sure the appraiser has ample amount of experience appraising the classification of property along with the purpose of the report.

Will the appraiser that you are contemplating on hiring be the same individual that will be completing the inspection and write up portions of the report? In many large firms, the senior appraiser essentially reviews and co-signs the reports as opposed to visually inspect the quality, condition and finish within the property.

How long will it take to receive my report? Do not be afraid to ask for a detailed description of the report. Many appraisers skimp out of key details. Ask if the quoted fee is inclusive of ALL disbursements.

All of these are important when hiring the best individual for your requested service.

Below is an article written by Jay MacDonald and was sourced from the link below. Although it is focused toward personal property appraisers, this article provides some great insight about the key questions to ask any service provider.

http://www.bankrate.com/brm/news/advice/20030801b1.asp

10 questions to ask a personal property appraiserBy Jay MacDonald • Bankrate.com

"Did you pick your appraiser based on a friend's recommendation? Maybe you thumbed through an antiques magazine and saw an ad that caught your eye. Or, most likely, you simply picked a person at random from the Yellow Pages.
Unlike real estate appraisers, most appraisers of personal property are not licensed. So how do you determine whether the person has the skill to give you a correct quote on your heirloom? The National Institute of Appraisers says these questions should help you determine whether the appraiser fits your needs:
1. What qualifies you to appraise my property? A pro will have formal education in appraisal theory, principles, procedures, ethics and law, as well as years of experience in his or her specialty.
2. Are you an accredited member of a professional society?
3. Have you been tested and passed a certification exam?
4. Do you take continuing education through your organization?
5. Do you buy or sell objects such as mine? If so, it could be a red flag for conflict of interest.
6. How much will your appraisal cost me? If the appraiser won't provide a written estimate, shop elsewhere.
7. How is your fee structured? It should be hourly or per piece, never a percentage of the appraisal.
8. What will I receive for my money? Ask for a detailed description of the appraisal report. Better yet, get copies of some recent appraisals.
9. How long will the appraisal take? Appraisals typically take anywhere from a week to a month.
10. Do you perform on-site instantaneous appraisals? Trick question. Run if they say yes."

Jay MacDonald is a contributing editor based in Mississippi.
--Posted: Aug. 1, 2003