What are red flags on an appraisal?

Red flags usually indicate a lack of independence or weak methodology. A quality appraisal should be transparent, well-supported, and clearly written.

Warning signs include:

• No stated purpose, effective date, or value definition
• Conclusions not tied to real market data
• Vague language without explanation or analysis
• Fees based on a percentage of value
• A promise to “hit” a specific number

Another concern is unverified credentials or reports that look generic across unrelated asset types. Inflated values justified by words like “rare” or “exceptional” without proof are also problematic.

A defensible appraisal explains how the value was developed and why it is reasonable. If the report feels thin, biased, or outcome-driven, it’s worth questioning its reliability.

Learn more about our personal property appraisals.