Frequently Asked Questions, Page Three

Page three of our FAQ builds on the prior two pages to explain the process an appraisal must go through in order to ensure it is complete and meets all the legal and ethical standards. After reading page one, Professional Standards and page two, What is an Appraisal, the steps outlined below complete the basic understanding of the appraisal process.

Topic Links:

Professional Standards  | What is an 'Appraisal' |  The Process

The Appraisal Process

Appraisers don’t rely on crystal balls or Ouija® Boards, nor are they psychics. They are not born with an inherent knowledge of values. What they do have is an intuitive set of procedures called the Appraisal Process. This is a methodical set of steps, which if followed, will ultimately lead them to an accurate and supportable opinion of value.

Once the property and associated rights are identified, a date of value and scope of work determined, the appraisal process can begin. Physical characteristics of the property that correlate to value are identified and listed. Once an adequate description of the property is obtained, emphasis then shifts to market research. The goal is to find something as near like the property being appraised as possible. Same property rights, same time frame, same physical characteristics, same everything. Simply put, this is a shoe-leather investigative project looking for something exactly like the property being appraised that has sold.

Recognizing that no two properties are exactly alike for all features, differences between the properties are observed and the affect on value of these differences measured. Adjustments to the sale prices are made. This process and data analysis is what forms the basis of the opinion of value.

As properties become more unique, the prospect of finding something similar diminish to the point where it can be concluded that no truly similar property exists in the local area of the subject. In this case, the area searched has to be expanded (in extreme cases to other states or regions in the United States), or other techniques considered. Again, time and expertise come into play. (Top)

Summary:
The information in our three FAQ pages is intended to give potential users of appraisal services insight into the Appraisal Process and Appraisal Industry. While not intended to be complicated, we acknowledge it may seem so. The good news is that as long as we understand it, clients don’t have to!

In response to the two most common questions (how much and how soon), we have developed an appraisal request form that clients can submit. We ask for basic information to enable us to understand the nature of the property and the appraisal problem to be solved. From that, we develop a Scope of Work for the assignment that is tailored to meet the client’s needs. Once a Scope of Work is agreed upon, we can offer quotes for fees and estimated date of completion. It is important that we get accurate information. As can be seen above, any detail that is left out or that changes in midstream changes the scope of work and can have an affect on time and cost. Fee quotes are based on time (hourly or per diem rates) and expenses. Time to complete the assignment is based on how long we think it will take us to complete the required research, complicated by the backlog of existing work.

Providing us with information does not obligate the client to any services. It is only used to form the basis of quotes for services and is kept confidential. In the event the client does elect to utilize our services, we ask for written authorization that outlines the agreed upon Scope of Work and fee quotes.


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Audsley & Associates PLLC
   Howard Audsley, ARA
   3312 Talent Drive
   Columbia, MO 65203
   (573) 819-6969 Cell Phone
   (573) 445-2583 Office & Fax

Email  • Contact Form

ASFMRA Logo 
    Professional
    Designations
  • Accredited Rural Appraiser (ARA)
    ASFMRA
  • Missouri State Certified General
    Appraiser #RA 001006
    ASFMRA Offices Held
  • Past President, MO Chapter
  • Past Sec/Treasurer, MO Chapter
  • Bylaws Committee
  • Ethics Committee
  • Education Committee
  • Accrediting Chairman
  • Instructor
    Clients Include
  • Buyers
  • Sellers
  • Owners
  • Lenders
  • Attorneys
  • Governmental Agencies
    Education
  • ASFMRA Mandatory Continuing Education
  • University of Missouri, Columbia
    BS in Agriculture, 1976
    Sections of our FAQ
  • Professional Standards explains who a professional appraiser is and why you should insist on finding an appraiser committed to upholding the high ethical and legal standards required.
  • What is an Appraisal? describes what constitutes an appraisal, what the meaning of "value" is, and other information that will assist you in choosing the right appraiser.
  • The process outlines what an appraisal must go through in order to meet the professional standards required of the appraiser, ensure it is complete and meets all the legal and ethical standards.
  • The Appraisal Request Form provides a no-risk, no obligation way to provide us with enough information to begin providing you with the two most important questions, 'how much' and 'how soon'.