ANSWERS TO COMMON QUESTIONS:
What can you expect from an appraisal? How do your Charitable Donations impact the IRS?
Whether you’ve hired an appraiser before, or just getting started and have more questions than you do answers, Lisa Barnes has provided a wealth of knowledge below, but feel free to contact her directly using the form at the bottom of the page if your issue hasn’t been addressed.
After leaving your home, a thorough research of the artists’ markets is conducted, including appropriate levels of gallery and auctions sales, and the items will be analyzed and valued accordingly. We will also research the artist(s), the appropriate sales markets, and research all data pertinent to constructing a written appraisal report that conforms to current USPAP Standards. Identification of each art object includes the following documentation, in conformity with the Getty Object ID System.
- Maker (artist or culture)
- Type of Object
- Materials and Technique
- Inscriptions and Markings
- Distinguishing Features
- Title (if known) and Subject
- Date and Period
- Biographical Data
Condition is specified, along with provenance information. At least one 4” x 5” photo (1” x 10” for IRS charitable contribution reports) accompanies a written description of each object, with any additional information that helps to identify it. The appraisal includes a narrative, which details whom was consulted, resources used and how the value conclusion was reached. Also noted is biographical information on the artist. Two reports will be given to the client (one hard copy and one on CD), while one will remain on file for 5 (five) years with Lisa M. Barnes.
But is a personal inspection by the appraiser required to gather the necessary information? The answer is “No” (though it is advised whenever possible). Having said that, appraisers almost always conduct a hands-on inspection of the property which is the subject of the appraisal assignment; however, on some occasions such as in the case of a theft or loss, the property is no longer available for inspection. In such cases, a personal inspection simply is not possible. On other occasions, the high cost or risk of loss of shipping a valuable subject property to the specialist appraiser for examination might necessitate an appraisal being conducted from afar without the benefit of a personal inspection. For items that remain available for inspection and which require special testing procedures or equipment to prove genuineness or quality, or which are potentially so valuable as to warrant the expense of a hands-on inspection, the specialist appraiser should insist that arrangements be made for personal inspection either by him/herself or by some other qualified appraiser. Otherwise, the appraiser should abandon the assignment. This discussion addresses USPAP’s requirements regarding the appraiser’s responsibility regarding inspecting and “identification.”
USPAP requires appraisal reports to identify the type and definition of value and citer the source of the definition. Waht is the “type of value?” Why is this no longer reffered to as the “purpose” of the assignment?
Standards 2, 6, 8 and 10 require that appraisal reports state the type and definition of value and cite the source of the definition. The exact wording varies by reporting option.
Previously, the term “purpose” in USPAP was used to refer to the several different concepts, including the type and definition of value. For the 2005 edition of USPAP, this and other special meanings of this term were eliminated to increase clarity. Where it is now used in USPAP, “purpose” will only convey the standard dictionary meaning of the word.
The “type of value” is the general class or category of value. Examples include market value or fair value. The “definition of value” provides a specific description of the characteristics and conditions of the type of value. Examples include definitions provided from a form report, in FIRREA, in U.S. accounting regulations, and U.S. tax regulations.
USPAP does not provide any specific definition of value or endorse any particular source.
- Registering to bid
- Picking up or shipping your property
Selling – if you have property you wish to sell, our team of specialists and client service representatives can help you through the entire process.
- Evaluation & decision to sell
- Selling contract & reserve price
- Commission & payment
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