How does the appraisal process work?

The appraisal process basically consists of four parts: the initial contact by the client; the examination of the property; the research and analysis; and the written 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 his purpose and the intended use of 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 hired. The letter states the terms of the engagement, the purpose and intended use of the appraisal, the costs and special charges related to unusual items. Any time limits and the tentative date of examination of the items are included. Attached to the letter of agreement are a list of limiting conditions of the appraisal and the appraiser’s credentials. Once the signed copies of the letter of agreement are returned along with a retainer, we confirm the appointment with the client to examine the property.

At the time of the property examination, the items are carefully examined, photographed, measured, and any documents relating to the property are reviewed. We determine the appropriate market level related to the purpose of the appraisal. 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.