Definition: Appraisers are highly trained professionals who use a variety of tools and techniques in their efforts to determine the value of assets. Appraisers are hired by real estate dealers, financial institutions, and many other businesses that deal with intangible items such as property, machinery, inventory, and financial services. Some examples of Appraisers include estate agents, lawyers, and loan shark specialists.
Appraisers use market data, competitive intelligence, and numerous other factors to provide unbiased estimates of the value of objects and other assets in the marketplace. Their job is to help consumers make good investment decisions by identifying good deals, comparing alternatives, and interpreting trends.
Appraisers need to have extensive knowledge of the market and be highly educated about the different aspects of gemstones, collectibles, and architectural/historical items. They should have a thorough understanding of appraisal standards, governmental regulations, and state laws.
The basic functions of an appraiser are collecting information and determining value. Appraisers generally use value analysis methods, such as comparing existing market conditions with historical data or applying modeling techniques to determine the most likely retail price that an item would sell under current market conditions. Appraisers rely on data and information gathered from third-party sources to help determine values for many kinds of assets for consumers.
In the case of Real Estate example, Appraisers use many metrics to create an overall impression score for a property. These metrics include architecture, style, amenities, landscaping, parking, street visibility, and home amenities like spas and pool facilities.
Appraisers are used throughout the world, and their services can be invaluable to individuals and businesses who wish to sell, buy, or invest in real estate.
Appraisers who work with primarily residential properties might need to have more formal training or take a more in-depth class in-home inspection terminology and theory before beginning work as an appraiser. To become a licensed appraiser in the U.S., you must take a written exam (which may be multiple choice or answerable sequentially), pass a practice appraisal exam given by an authorized instructor, complete leadership and professional development class, and attend continuing education sessions hosted by your state association. An appraiser might conduct site visits, interview potential buyers, or even conduct an in-house evaluation of a home-based on its current market condition and other information.