What qualifies you to appraise my property? A qualified appraiser has formal education in appraisal theory, principles, procedures, ethics, and law. The appraiser should be up to date on the latest appraisal standards. Continuing education and testing are the only ways to ensure this competence.
The appraiser you hire should be familiar with the type of property you want appraised and know how to value it correctly. Expertise in a particular field is not enough if the expert does not know how to evaluate an item for its appropriate worth. Without appraisal training, these experts have no way of understanding the complicated variety of marketplace definitions that are used to determine appropriate values for appropriate uses.
For example, a museum curator may be able to authenticate a work of art, or a jeweler may be able to determine the identity of a gemstone, but neither may be able to value those items correctly unless they follow appropriate appraisal principles and procedures. Do all appraisers have similar qualifications? NO! There are many self-acclaimed personal property appraisers who have not completed any professional education since the profession is not regulated at the State or National level.
It is important to obtain a copy of the appraiser's professional profile or resume to help you evaluate the appraiser's credentials. The burden is on the consumer to evaluate an appraiser's qualifications.
Do you belong to an appraisal society that tests its members? There are many appraisal organizations, but only a few require members to take courses and pass tests before being admitted as credited members. ISA is such an organization.
Membership in a appraisal association is important because it shows that the appraiser is involved with the profession, has peer recognition, has access to updated information, and is subject to a code of ethics and conduct. Have you been tested? Do you take continuing education classes? How will you handle items which may be outside your specialty area? No appraiser should claim expertise in every area. ISA recognizes over 230 areas of specialty knowledge. A good appraiser knows his limits, and is expected to consult with other experts when necessary.
What is your fee and on what basis do you charge? DO NOT hire an appraiser who charges a percentage of the appraised value, or charges a contingency fee. These practices are clearly conflicts of interest, and may result in biased values. The IRS will not accept an appraisal done with such fee arrangements.
ISA Appraiser are prohibited by their Code of Ethics from charging a fee based on a percentage of the value of the property appraised.
Appraisals and consultations are based on hourly fees, flat rates, orper item charges are acceptable. Factors include on-site time, research time, documentation, travel and mileage. What will the appraisal report be like? You should receive a formal, typewritten report that gives you the information you need in a complete and organized way.
Some appraisal societies only teach appraisal theory, with no real life examples. ISA is the only major appraisal society in the U.S. that specifically trains its members in how to write standardized, comprehensive appraisal reports. Each accredited member has been tested on these standards.
"Blackfoot Indian On Horse Back" by Karl Bodmer from Travels in the Interior of North America: 1832-1834 by Prince Maxmillan of Wied (1782-1867)
