How does the appraisal process work?

The appraisal process basically consists of four parts: the initial contact by the client; the inspection of the property; the research and analysis; and the written appraisal report.

Usually when the client or his representative contacts Lohman and Company, he knows whether he needs an appraisal or consultation. If there is confusion, we can help clarify the client’s needs by asking pertinent questions relating to why he wants the appraisal.

From the information the client gives us, we compose a letter of agreement which restates our understanding of the job for which we are engaged. The letter states the terms of the engagement, the type of value, the intended use of the appraisal, and the costs and special charges related to unusual items. Any time limits and the date of the inspection of the items are included. Attached to the letter of agreement are a list of preliminary limiting conditions of the appraisal, our privacy policy and the appraiser’s credentials. These documents are reviewed with the client at the initial meeting, and if accepted, signed. A retainer is required at the initial meeting.

At the time of the property inspection, the items are carefully inspected, photographed, measured, and any documents relating to the property are reviewed. We determine the appropriate market level related to the type of value sought. After research to examine comparable properties, consultations with dealers in the appropriate market, the data are analyzed, and value conclusions are reached. The client receives a written report which clearly describes the property, discusses the history of the property, and how we arrived at the value conclusion.