The definition of an appraisal as defined by USPAP (Uniform Standards of Professional Appraisal Practice) is “the act or process of developing an opinion of value”.
An appraisal is made up by many factors and we will list only a few: the item, why is an appraisal needed, what type of appraisal is required, research of the item, comparable item reviews, written documentation on all facets of the appraisal with a written document to the person requesting the appraisal.
One can see an appraisal requires time and effort by the appraiser. The expense of an appraisal will depend on the level of information the person is seeking. The more time required of the appraiser the greater the expense. Simple single item appraisals may run less than $100 while others may be much more.
Appraisals should be based on the appraiser’s time. Appraisers should never do an appraisal based on a percentage of value and never have an interest in the item appraised. This leads to inflated values or under valuation. The USPAP guidelines and appraisal associations forbid this practice.