Image courtesy of Anubis Appraisal and Estate Services Inc.
What is an Appraiser?
As defined in The International Society of Appraisers, Core Course in Appraisal Studies 2021 pg. GL-1, an appraiser is “one who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.” The role of the appraiser is to develop an opinion of value for a specific purpose. There are several different types of appraisers such as real estate, personal property, and business appraisers. For this instance, the term appraiser will reference a personal property appraiser, which is what I do. As a personal property appraiser, my role encompasses tangible property including fine art, antiques, furniture, and collectibles. Reasons of valuations for tangible property can include estate and probate purposes, equitable distribution, insurance coverage, charitable donations, dissolution of marriage, and bankruptcy.
Qualifications of an Appraiser
Seeing how there is no recognized regulation for personal property appraisers, it is very important to understand what qualifications to look for when researching and choosing an appraiser. The most important qualification to look for is USPAP compliance. USPAP refers to the Uniform Standards of Professional Appraisal Practice, which was first adopted and recognized by Congress in 1989. This course requires appraisers to first take a fifteen-hour course with seven-hour update courses done every two years. To clarify, there is no official “certification” for personal property appraising, an appraiser may have certifications for specific courses such as Gemology but for USPAP, an appraiser refers to themselves as “USPAP compliant” rather than certified.
Another thing to look for are professional affiliations. The three main personal property appraisal associations are the International Society of Appraisers (ISA), Appraisers Association of America (AAA), and the American Society of Appraisers (ASA). Confirmation of membership with these organizations can be checked through their online directories or by directly contacting the appraisal organization.
Types of Appraisers
There are typically two types of personal property appraisers: generalists and specialists. As the names imply, generalists work with a wide range of subjects while specialists focus on a specific type of field. For larger collections or instances that include a variety of items, generalists can provide the most comprehensive and cost-efficient service. These types of appraisers often overlap, generalists can consult with specialists for specific items or if they feel that they need to have a second professional opinion. There are also instances where generalists may also specialize in certain areas. In my appraisal practice, I am a generalist appraiser but with my professional background and accredited status in fine art, I also specialize in tribal art. Appraisers may also assist with consulting and estate liquidation. This part of the appraisal process requires appraisers to consult with and decide the best avenues for de-acquisition based on the items and client’s needs.
General Steps for Appraisals and Valuations
The appraisal process starts with a physical inspection. This is the most basic part of the process which includes assessing and documenting the item(s). Descriptions, measurements, and photographs are typically taken during an onsite visit. There is also the option for a desktop appraisal which became more common after the Covid-19 Pandemic. A remote inspection may be done if the client is in a different state or if there is sufficient information so that an onsite visit is not required. After the inspection starts the valuation process. There are many factors to consider when creating valuations including methodology. Appraisal methodology is determined with the purpose of the appraisal, different appraisal purposes will have different types of values. For instance, insurance coverage requires a value based on retail comparables while charitable donations require a fair market value based on auction sales results.
In Conclusion
This is all to say that there are many factors that go into the appraisal process. Individual needs differ for each appraisal and the above information is meant to provide a broad overview of what goes into the appraisal process and what to consider when choosing a competent and qualified appraiser who will fit your needs.
