1. What does an appraisal document consist of?
Appraisers Association of America Guidelines
A Correctly prepared appraisal document consists of:
Name and Address of Client
Purpose of the Appraisal. Intended use: Donation, Estate, Insurance, Equitable Distribution, etc.
Valuation Approach used: Cost Estimate, Income Approach, Market Data Comparison Approach, etc.
Market in which valuation is applied: most common market place.
Market Analysis: Generic market History and possible projections for future activity.
How objects were acquired – especially for IRS purposes.
Statement of professional Qualifications of Appraiser. Curriculum Vitae.
Date of preparation of Appraisal and date on which objects were viewed. Effective date of Appraisal.
Statement of physical inspection or method used in determining value. Any qualifications?
Statement of ‘disinterest’ on the part of the Appraiser.
Statement that the Appraiser has not been ‘disqualified’ by the IRS (for IRS Appraisals).
Statement of Assumption and Limiting Conditions.
Statement of fee Structure. (Statement that the Appraisers fee is not contingent on appraised value of objects.)
Statement of belief in authenticity; that the appraised objects correspond to descriptions listed in the Appraisal.
Clear division of appraisal when one or more than one appraiser is involved. Who did what ? inclusion of Curriculum Vitae of Consulting appraiser.
Thorough description of appraised objects. Measurements and weights when applicable.
Brief biography of the artist when necessary.
Provenance (if available).
Exhibition and Publication history ( if any).
Statement of condition of appraised objects.
Comparables and related analysis when necessary.
Firm statement of value - not estimates, except when followed by detailed explanations of qualifications.
Signature of Appraiser(s) and Tax Id number(s) when appraisal is prepared for IRS purposes.
Statement of number
of pages in appraisal.