This article will discuss what a qualified appraiser is, what they do, and the value of engaging their services.
Frequently, I am asked if I am a certified appraiser. Appraisers are not certified by a governmental body; however, appraisers can have accreditation or certification status within the appraisal organizations to which they belong. There are three leading appraisal organizations in the United States: the Appraisers Association of America, the American Society of Appraisers, and the International Society of Appraisers. For instance, I am an Accredited Member of the Appraisers Association of America and a Certified Appraiser of Personal Property (CAPP) within the International Society of Appraisers.
The Appraisal Foundation is an organization dedicated to promoting professionalism and ensuring the quality and credibility of appraisals across various disciplines. Established in 1987, it accomplishes its mission through two subsidiary organizations:
The Appraisal Standards Board (ASB): The ASB is responsible for developing and updating the Uniform Standards of Professional Appraisal Practice (USPAP), a set of ethical and professional standards that govern the appraisal profession in the United States. USPAP sets the guidelines for appraisers and ensures that appraisals are conducted with integrity, objectivity, and consistency.
The Appraiser Qualifications Board (AQB): The AQB establishes the minimum education, experience, and examination requirements for individuals seeking to become licensed or certified appraisers. It helps ensure that appraisers have the qualifications to perform their roles effectively.
While the Appraisal Foundation is not directly overseen by Congress, its standards, including USPAP, are widely recognized and utilized as the industry benchmark. Regulators at the federal and state levels often rely on these standards when overseeing the appraisal profession. The Foundation's influence and work significantly impact the appraisal industry's regulation and standards, but it remains an independent organization.
All appraisers are required to be USPAP compliant. Appraisers stay USPAP compliant by taking an updated course every two years. This compliance means that the appraisal report issued complies with these standards.
Appraisers are often asked if they authenticate items. Technically, appraisers are not authenticators. When necessary, they liaise with experts recognized in that particular field or artist.
In summary, a qualified appraiser is an individual who possesses the necessary education, experience, and credentials to provide reliable, accurate, and impartial appraisals that adhere to USPAP standards and are USPAP compliant.
Hiring a qualified appraiser is essential, especially when valuing personal property. Here are several reasons to hire a qualified appraiser:
Accurate Valuation: Qualified appraisers are trained and experienced in determining the value of assets. They utilize a standardized methodology to ensure accurate valuations.
Unbiased and Independent: Appraisers are considered independent third parties, which means they do not have a vested interest in the appraisal's outcome. This impartiality is crucial in providing objective valuations.
Insurance Coverage: Appraisals of personal property such as art, antiques, and other valuables help ensure a client has adequate insurance coverage. An accurate appraisal can facilitate insurance claims and provide fair compensation in the event of damage or loss.
Estate Planning, Tax, and Probate: Appraisals are often needed when valuing assets for estate planning or probate purposes. Accurate valuations assist in determining an estate’s worth, distributing assets among heirs, and calculating potential estate taxes.
Divorce Proceedings: Appraisals can be crucial during divorce proceedings where marital assets must be divided equitably.
Non-Cash Charitable Contribution: Appraisals for non-cash charitable contributions over $5,000 are required. The IRS often scrutinizes these appraisals. They require critical language to ensure the donation is allowed by the IRS and a clear and accurate explanation of how the value was determined.
Investment Decisions: Investors may hire appraisers to assess the value of works of art and other investment assets, helping them make informed decisions.
In all of these cases, hiring a qualified appraiser ensures the valuation process is conducted professionally and impartially and complies with industry standards and requirements. This provides peace of mind that your assets are valued accurately, which can be crucial for making informed decisions and protecting one’s assets.
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