I have been writing about appraisals for awhile without every really citing what they are and are not.  Professional appraisers have many years of experience within their respective field of expertise,  study and take classes each year to continue to educate themselves, and take tests and do peer-review work to attain professional credentialing.  Professional appraisers have studied and passed tests on USPAP.  Uniform Standard for a Professional Appraisal Practice is a standard that applies to all appraisals and is also used by real estate appraisers. That way an appraisal will contain minimum information regardless of whether it is written in Atlanta or Anchorage.   Be sure to ask about the credentials of any appraiser you consider hiring.  Below are bullet points for what a appraisal is and is not.

An Appraisal IS :

For a specific function
For a specific purpose
A client tailored document
An act of determining value
Supported by facts
Has an effective date
A written & legal document

An Appraisal Is NOT :

A price
A guess
“Fill in the blanks” document

Please let us know if you any questions regarding appraisals.  Remember that insurance industry standards suggest that you update appraisals every 3-5 years to keep them current with changing markets which affects values.

Blogging On in my 30 day challenge.