What is an appraiser?
An appraiser is someone who uses their analytical skillsto evaluate and assign value to a product, piece of machinery, intellectual property, real estate or commercial entity. Throughout the process, they may guide their clients about how to increase their property’s value and how long it will take to receive an answer from the appraisal company regarding their valuation.
What does an appraiser do?
Here are some key roles and responsibilities typically expected of an appraiser:
- Travel to different locations to meet with clients and evaluate properties or objects of value.
- Write reports that summarize an appraisal and the factors that contributed to an increased or decreased value of an item or property.
- Take photos of the property or item(s) of appraisal for future examination and reporting.
- Compare property to local listings in the area to determine value.
- Compare items to others within an industry to help determine value.
- Garner knowledge of local attractions and proximity to facilities that increase the value of a property (e.g., airports, grocery stores, cities, historic attractions).
- Maintain communication with the client throughout the appraisal process to keep them updated on the status of their application.
Related: Performance Appraisal Forms: A Guide for Managers
What are the different types of appraisers?
Appraisers can work in a variety of industries, depending on their specialty. Here are some examples of types of appraisers and their specialties:
- Real estate appraisers:This type of appraiser assesses the value of commercial properties, agricultural lots and residential real estate. They help homeowners refinance their mortgages and they help realtors determine the listing prices for agricultural sites and buildings used as offices.
- Personal property appraisers:These appraisers specialize in evaluating one or more personal items of value. This could include jewelry, artwork, historic artifacts or equipment and machinery. From this, they can help owners determine a price for resale or help them determine the value of an asset.
- Business valuation appraisers:This type of appraiser works specifically with business owners to assign value to their assets (e.g., employees, office locations, equipment, brand awareness). This can help businesses better market themselves to investors in times of financial need.
- Mass valuation appraisers:In this type of appraisal, appraisers have the responsibility of evaluating and assigning value to more than one area. For example, a mass valuation appraiser may be responsible for assessing the value of a fully-furnished home with 19th century flooring and several antique items in superb condition.
Reasons to hire an appraiser for your business
There are a variety of circumstances where businesses need to enlist the expertise of an appraiser. Here are a few situations:
- If you want to sell your business, a business location or business asset (e.g., a piece of land, equipment or trademark)
- If you want to determine the future value of your business and your assets
- If a legal event occurs that requires a business appraisal prior to the start of the trial
- If you want to evaluate the value of your company’s talent (employees) and identify areas to expand
- If you are unsure of the amount of taxes your business needs to pay come tax season, or you want a reduction in taxes based on the scope of your business (e.g., small businesses may be subject to lower tax obligations than medium or large corporations)
- If you want to attract investors to support your company
