Appraising Other Appraisals

Appraisal review or appraising an appraisal is “the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal, appraisal review, or consulting assignment.” – (USPAP)

The appraisal review is part of a normal “due diligence” by providing a better understanding of the appraisal and its valuation to clients. (Appraising the Appraisal, The Appraisal Institute, Second Edition).

There are many reasons why a person would wish to obtain an opinion of another appraiser’s valuation of an aircraft and vary as to the individual client needs.

• The appraisal review is considered a prudent business practice to test the reasonability of the appraisal for use by many who use appraisal services.
• To support due diligence, compliance, litigation, dispute resolution, arbitration, quality control or regulatory audit
• To test whether the methods and techniques used in the appraisal are appropriate to the assignment
• To assist clients in managing risk
• For example, you are interested in purchasing a particular aircraft. The vendor has obtained an appraisal of his own and has listed the aircraft accordingly.
• You suspect that the appraiser retained is not a certified appraiser, may have not viewed the aircraft or log books, or the appraisal may be biased and you wish to obtain a sound opinion as to the value and/or condition.

The appraisal review is considered a prudent business practice to test the reasonability of the appraisal for use by many who use appraisal services.

Click here to learn more about the appraisal process.