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

Frequently asked questions about appraisers

What happens during an appraisal?

During an appraisal, an appraiser typically walks around a property and takes pictures of the outside, as well of each of the rooms inside. They may also measure the size of each room and take notes of any amenities they see. In slight contrast, a business appraiser may survey your facilities, review financial statements and meet with you to learn more about your company.

What training and education do appraisers have?

An appraiser’s education and training needs differ depending on the specialty they plan to pursue, so it is important to review the requirements for each type before deciding whether a candidate has the right qualifications. Here is a general overview of the education and training that appraisers typically receive:

1. Earn an associate’s degree in real estate, real estate appraisal, business or a related area (or bachelor’s degree for specialties like business).
2. Perform work in real estate or an industry relating to their desired appraisal specialty.
3. Complete a certain number of hours in appraisal courses within the state they want to practice.
4. Hold current state licensure to complete work as an appraiser.

How do I interview an appraiser?

If you work as part of a lending firm or financial institution, you may need to hire an appraiser to help determine whether a client should be given money for an increased property value. For this reason, there are a few things you should do before, during and after an interview with an appraisal candidate:

1. Review their resume and cover letter ahead of the interview to help generate topics of discussion and interview questions about their previous work experience and skill levels.
2. Create an additional list of questions related to your company and specific appraisal scenarios to test their knowledge about the appraisal process and your business.
3. Send a reminder email one day before your interview to confirm the date, time and location to meet with them.
4. During the interview, make a mental note of their answers, personality and overall demeanor.
5. At the end of the interview, ask if they have any questions and provide them with a set time-frame in which they can expect to hear back from you about the position.
6. When the interview is complete, take a few minutes to write down notes about the candidate, what impressed you about them and any remaining questions you have.