Why would I have an appraisal done?
- To decide how much to insure something for
- You're donating an item to charity. How much is it worth on your taxes?
- To know how much to ask for something when you want to sell it
- To decide how much to invest in caring for an item (Should I have it
restored?)
- For estate planning
- How much will estate taxes be?
- How can I split things up fairly if I don't know what they're worth?
- To prove value in all kinds of legal cases, to the IRS, or to insurance
companies
- For my business:
- To know what it's worth
- To understand where my company fits in the competitive landscape
- To know what it's financial condition is
- To be able to make fast decisions on buying, selling and mergers
- To be able to make good business dissolution decisions
How do I find somebody to do an appraisal?
- Why pick a professional appraiser?
- Don't believe what you see on TV! Professional-quality appraisals can't be
done in 10 minutes or less and they're not free. Like any other profession, you
get what you pay for.
- Accredited appraisers give you the most accurate appraisal because they take
the time to research what they're appraising and its market value.
- Accredited appraisers are highly trained and follow strict ethical
professional standards
- An accredited appraiser follows professional standards designed to promote
an accurate, objective opinion of value
- Why an accredited appraiser?
- accredited appraisers provide the best valuation expertise available on
the market, and their appraisals provide unmatched credibility in all legal
proceedings.
- members earn their accreditations only after completing a rigorous
evaluation process that requires years of study, dedication and commitment.
- appraisal societies founded the Appraisal Foundation to set the
generally accepted and recognized standards of professional appraisal practice
in the United States. The Appraisal Foundation was recognized by Congress as the
source of Appraisal Standards and Appraiser Qualifications.
- Accredited appraisers follow both the professional standards set forth
by the Appraisal Foundation and stringent Code of Ethics and
Principles of Appraisal Practice.
- What kind of appraiser do I need?
- The type of item you want appraised determines the type of appraiser you
need.
- Need an appraisal you already have reviewed, or someone to manage a large
appraisal project? - you need an Appraisal Review and Management appraiser
- Diamond rings, Grandma's jewelry, or any other gems or jewelry - you need a
Gems and Jewelry appraiser
- Equipment or things to actually do your business (milling equipment,
windmills, farm animals, green-tech, high-tech, you name it), mines and
quarries, oil and gas and public utilities, or technical equipment like planes
and yachts - you need a Machinery and Technical Specialties appraiser
- Art, antiques, all kinds of collectibles, cars, guns, home contents - you
need a personal property appraiser
- Real estate, all kinds - you need a Real Property appraiser
- What is an accredited professional appraisers
- An accredited appraiser follows professional standards designed to promote
an accurate, objective opinion of value
- How can I decide which appraiser to work with?
- Don'ts:
- Never use the services of an appraiser who offers to purchase what they
appraise!
- Never use the services of an appraiser who charges a percentage of the
item's value for the appraisal.
- Don't use an appraiser who has either a current or future interest in the
value of the item unless it is disclosed to you and disclosed in the appraisal
report
- Do's:
- Ask the appraiser about his or her professional accreditations and how they
qualify for those accreditations
- Ask for documentation of accomplishments: An ASA-accredited appraiser will
supply consumers with a qualifications statement or résumé that includes his or
her job history.
- Ask for references / recommendations from current and former clients, such
as insurance companies, banks, museums, government agencies, homeowners, etc.
- Ask about recognitions received by the appraiser for professional
activities.
- Interview the appraiser and ask how the appraiser's experience and knowledge
or expertise relates to the particular appraisal you need performed.
- Make sure you understand what the appraisal report you will get includes. It
should have at least:
- the kind of value being determined, such as fair market (used for taxes),
replacement (used for insurance coverage), liquidation (used for bankruptcy or
business dissolution) etc.;
- a description of the property being valued;
- details of the procedures used to estimate the value;
- the signature of the appraiser responsible for validity and objectivity; and
- the personal qualifications of the appraiser.
- Make sure all your fee-related questions are answered before you sign an
agreement.
- Other questions you can ask:
- What is your general appraisal and educational background?
- What specific experience do you have with the type of item I want to have
appraised?
- Are you a member of a professional appraisal society? Does that society
teach, test and accredit?
- Do you hold a special designation issued by an appraisal society?
- Is that designation based on successfully completing written examinations?
- How long ago did you take the examinations?
- What continuing education have you undertaken to keep up-to-date in the
field?
- Has the appraisal society you belong to adopted a mandatory reaccreditation
program to ensure that your education and knowledge are current?
- What do you charge for your services, and on what do you base your fee?
- Are you required by your appraisal society to adhere to the Uniform
Standards of Professional Appraisal Practice (USPAP)?
