Are you competent in this asset class? Competence is asset-specific. A residential appraiser signing off on a firearms collection is exactly the mismatch that draws IRS scrutiny, and the competency rule requires the appraiser to disclose any lack of it.
Who signs the report? Many online appraisal companies route the work to a subcontractor you will never speak to. Ask whether the person you are talking to will perform the work, sign it, and be available if it is challenged.
What is the fee, and is it fixed? A fixed fee agreed in writing before work begins protects you. A fee contingent on the value concluded is prohibited and should end the conversation.
Do you buy what you appraise? An appraiser who is also a buyer has an interest in your number being low. That conflict is disqualifying for anything that has to withstand scrutiny.
What value premise will you apply, and why? If the answer is not tied to your intended use, the appraiser has not understood the assignment.
Have you testified? Only relevant if the matter might become contested — but if it might, ask early rather than discovering the answer at the worst moment.
Written by
Jeremy C. Johnson — President / Valuation Specialist. AQB Certified USPAP Instructor, Certified Residential Real Estate Appraiser, 21+ years and 7,000+ valuation assignments. Statement of capability →
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