The Appraisal Foundation sets the guidelines for all appraisers and publishes the Uniform Standards of Professional Appraisal Practice (USPAP).
They have added a new page to their website with resources for consumers seeking personal property appraisals. The following is available:
Resources For Personal Property Appraisers
- Links to major appraisal societies with searchable databases of personal property appraisers (including the International Society of Appraisers, of which I am a member).
- Brochure titled “The Personal Property Qualification Criteria”, effective Jan. 1, 2018.
- Informational brochures describing the process of valuation for different types of property including Gems and Jewelry, Fine and Decorative Art (see below), Machinery and Equipment.
Valuation of Fine and Decorative Art
Users of appraisal services are encouraged to take advantage of these informative resources.
The Appraisal Foundation will be holding the second personal property roundtable on September 23rd in Washington, DC titled “Envisioning the Future: Building Public Trust”. Topics of discussion will be of importance to personal property appraisers and include qualifications, standards and oversight. Panelists will include a wide variety of personal property disciplines, as well as auction houses, appraisal associations and law firms.
The roundtable will be conducted from 1:00 PM – 5:00 PM and is free and open to observers. A networking reception will follow. For more details and registration, see the Appraisal Foundation website.
The Appraisal Foundation is an important source of appraisal standards and qualifications for real property appraisers. Most personal property appraisers voluntarily comply with these standards. Users of appraisal services should engage appraisers who are compliant with the Uniform Standards of Professional Appraisal Practice (USPAP) and keep updated with the changes every two years. The foundation programs and events listed below apply to personal property appraisers.
The Appraisal Foundation Seeks Candidates for Business Valuation and Personal Property Resource Panels
The Appraisal Foundation, a non-profit organization dedicated to the advancement of professional valuation, is initiating its search for qualified candidates to serve on two volunteer resource panels that will report to the Board of Trustees: the Business Valuation Resource Panel and the Personal Property Resource Panel. There are up to ten vacancies on each panel and terms will last approximately one year. Completed applications for the panels must be received by September 20, 2013.
Minimum Competency Qualifications, Standards and Oversight Accountability for Personal Property Appraisers
September 24, 2013 Washington, DC
The Appraisal Foundation is pleased to announce its first roundtable discussion for the personal property appraisal profession. This roundtable will focus on issues of importance to personal property appraisers and users of appraisal services including the topics of minimum Qualifications, Standards and Oversight.
Source: Appraisal Foundation
The Appraiser Qualifications Board (AQB) has a public meeting scheduled in San Diego, California on Sept. 13 from 9:00 AM – 12:00 N at the Westin San Diego.
The AQB is part of the Appraisal Foundation, authorized by Congress as the source of appraisal standards and appraiser qualifications. Both personal property and real property appraisers adhere to the Appraisal Foundation’s Uniform Standards of Professional Appraisal Practice and the biyearly updates. For personal property appraisers, compliance is voluntary but usually required by their professional appraisal societies.
According to the Appraisal Foundation website:
The AQB establishes the minimum education, experience and examination requirements for real property appraisers to obtain a state license or certification. In addition, the AQB performs a number of ancillary duties related to real property and personal property appraiser qualifications.
As part of their work, they established Personal Property Appraiser Minimum Qualification Criteria to be used by major clients of personal property appraisers. Compliance is voluntary.
For more information including the AQB meeting agenda and registration form, visit the Appraisal Foundation website and click on Events / Meeting Registration.
You might be surprised to hear that there are no Federal or state licenses for personal property appraisers in the United States. When it comes to placing a value on your antiques, art and household contents, anybody can say they are a appraiser. If a personal property appraiser claims to be licensed, it is for some other aspect of their business, e.g. auctioneering, real property appraising, private investigation or even a city business license.
How are personal property appraisers credentialed and what standards do they follow?
Appraisers are credentialed by their professional appraisal associations. The three largest associations with personal property appraisers are the International Society of Appraisers (ISA), the American Society of Appraisers (ASA) and the Appraisers Association of America (AAA). In addition to testing, education and demonstration of appraisal experience, designated members must requalify every 5 years. All members are bound by a Code of Ethics.
The Uniform Standards of Professional Appraisal Practice (USPAP) is a set of guidelines published by The Appraisal Standards Board at The Appraisal Foundation. It is the source of generally accepted standards and ethics for appraisers in the United States. Appraisers must take USPAP courses and keep current with the updates every 2 years. In addition, the Appraisers Qualifications Board has developed voluntary minimum qualifications for personal property appraisers.
The IRS has established the following requirements:
- A Qualified Appraiser has earned a professional designation from a recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or has met certain minimum education and experience requirements.
- The individual regularly prepares appraisals for which he or she is paid.
- The individual demonstrates verifiable education and experience in valuing the type of property being appraised.
- The individual has not been prohibited from practicing before the IRS under section 330(c) of title 31 of the United States Code at any time during the 3-year period ending on the date of the appraisal.
- The individual is not an excluded individual.
What should you do to make sure you are getting a qualified and ethical appraiser?
- Choose an appraiser from a major appraisal society and check to see if they are current. Certified and Accredited are the highest levels of designation.
- Ask them about their experience, areas of designation and expertise.
- The appraiser should provide a 3rd-party independent opinion of value, and not have a potential conflict of interest.
- Choose an appraiser who is USPAP compliant and IRS qualified.
Perhaps personal property appraisers will be regulated and licensed at some future date. In the meantime, the user of appraisal services should carefully consider their selection.