Appraisal & Process

Function of an Appraiser

An appraiser's responsibility is to act as a disinterested third party in providing valuation for property for either an owner or some other interested party and/or government agency.

Purpose of Appraisal

The client and appraiser must have a mutual understanding of the use and purpose of the appraisal report prior to starting the appraisal engagement. Intended uses of the value conclusions of the appraisal report consist of, but are not limited to the following:

Allocation of Purchase Price
Bankruptcy
Collateralization
Condemnation
Dissolution of Corporation
Dissolution of Marriage
Dissolution of Partnership
Equipment Sale
Eminent Domain
Financing
Financial Planning
Insurance
Leasing
Liquidation
Litigation Matters
Loss Settlement
Management Considerations
Mergers and Acquisitions
Taxation - Property Tax
Taxation - Estate and Gift Taxes
Transfer of Property

Valuation Process

Valuation process is the systematic appraisal procedure employed to provide answers to our client’s questions about value. It begins when we fully understand and identify the appraisal scope, objectives and restrictions of the project at hand and concludes when the appraiser reports his or her solution to the client.

Once the scope, objectives and restrictions of the project are identified and defined, then research begins to move toward a value. The goal of the valuation process is to produce a well supported and independent opinion of value, that shows the appraisal has considered all factors that affect the value of the assets being appraised. Backup of a well supported opinion of value is achieved through:

Purpose of Appraisal
Considering all Notions of Value
Determining What is Relevant
Identification of the Property to be Appraised
Collection of Data
Inventory of the Assets
Classification of Assets
Research of Cost
Research Income and Market Data
Application of Indexes & Trending as Applicable
Determination of Physical Deterioration
Determination of Functional Obsolescence
Determination of Economic Obsolescence
Depreciation Analysis
Inspection of Assets
Life Components / Age-Life Analysis
Limiting Conditions
Conclusion of Value