Appraisals FAQ

An appraiser identifies and provides a value for various types of property. Appraisers fall under several categories of appraisal types such as personal property, real property, machinery and technical specialties, appraisal review and management, gems and jewelry and business valuation.

Appraisals are done for many reasons ranging from estate planning to buying a home to determining value for insurance or tax purposes. The most important factor to be concerned with is choosing the correct appraiser to do the work.

Don't believe what you see on TV! Professional-quality appraisals can't be done in 10 minutes or less and they are not free. Like any other profession, you get what you pay for.

ASA-accredited appraisers provide exceptional valuation expertise as they earn their designations only after completing a rigorous course structure and peer-evaluation process that requires years of study, experience, dedication and commitment. ASA accredited appraisers follow both the professional standards set forth by the Appraisal Foundation and ASA's own Code of Ethics and Principles of Appraisal Practice to provide a credible, objective opinion of value.

It depends on the item you wish to have appraised. ASA represents appraisers of all types including gems and jewelry, real property, personal property, machinery and technical specialties, business valuation and appraisal review and management. If you are not sure, simply contact us – we are happy to help.

ASA has over 3,500 designated appraiser members throughout the world. Our Find an Appraiser tool will help you locate one quickly and easily.

• Ask the appraiser about his or her appraisal education, professional designations and how they qualified for those designations. Read more about how ASA accredited appraisers qualify.
• Ask for documentation of accomplishments: An ASA-accredited appraiser will supply consumers with a qualifications statement or résumé that includes his or her job history.
• Ask for references/recommendations from current and former clients.
• Ask how the appraiser's experience and/or expertise relates to the particular appraisal you need performed.
• Ask if they belong to a professional appraisal society and if that society teaches, tests and accredits?
• Ask what continuing education the appraiser has undertaken to keep up-to-date in the field?
• If they belong to a professional society, ask if that society has a mandatory reaccreditation program to ensure their education and knowledge are current?
• Ask if the appraisal report you will receive is USPAP compliant (Uniform Standards of Professional Appraisal Practice).
• Make sure all your fee-related questions are answered before you sign an agreement.
• Make sure the appraiser explains exactly what your appraisal report will include.

• Never use the services of an appraiser who offers to purchase what they appraise!
• Never use the services of an appraiser who charges a percentage of the item's value for the appraisal.
• Don't use an appraiser who has either a current or future interest in the value of the item unless it is disclosed to you and disclosed in the appraisal report.

It depends on the nature of the property. A proper, credible valuation of personal property or gems and jewelry can take several weeks, while a professional appraisal of a large business or complex machinery and equipment can take several months. The cost varies significantly as well. Fees are set by the individual appraiser and are often based on an hourly, half-day or full-day basis. The appraiser's fee ranges with experience and expertise. Most appraisers do charge for research time and there may also be costs for expert consultation, photography, etc. Be sure the appraiser gives you a fee schedule or estimate before work has begun and be sure your appraisal agreement defines the scope of work and when the report will be delivered.

You will get an appraisal report.

An appraisal report is a document that:

• Clearly states the kind of value being determined, such as fair market (used for taxes), replacement (used for insurance coverage), liquidation (used for bankruptcy or business dissolution), etc.
• Describes the property being valued.
• Details the procedures used to estimate the value; such as:
  • Analysis of comparable sales;
  • Estimation and analysis of income (if applicable) and
  • Relation of the appraisal values to a specific point in time (e.g. fair market value of the real estate as of January 1, 2009).
• Includes the signature of the appraiser responsible for validity and objectivity.
• Specifies the personal qualifications of the appraiser.

This depends on the nature of the property and market conditions. While many appraisers suggest an update every two to three years, you should ask for a recommendation during the initial valuation.

The most important appraisal is the first one. Once property is lost, stolen or destroyed, it is much more difficult to determine value. Insurance companies demand credible, professional appraisals before they will approve reimbursement—photos and memory are not enough. Generally, "updating" an appraisal requires a change only in the value conclusion of a report. A professional appraiser can provide an informed and helpful recommendation as to the necessity and frequency of appraisal "updates."

An advantage of hiring an ASA-accredited appraiser is their adherence to professional standards including ASA’s Principles of Appraisal Practice and Code of Ethics - the code of conduct to which all ASA members must subscribe. ASA is diligent in its efforts to ensure ethical practices and procedures on the part of its members. The Society has developed a mechanism for the enforcement of the Code of Ethics whereby clients may file written complaints if they feel an appraisal rendered by an ASA member violates sound professional practice.

If you wish to file a complaint, please mail your written complaint to:

American Society of Appraisers
Attention: Chief Executive Officer
11107 Sunset Hills Rd, Suite 310
Reston, VA 20190

Appraisers charge by the hour or by the project. Fees generally include time expended to inspect, photograph, research and identify, analyze, conclude value, and prepare the appraisal report. Appraisal fee rates vary, depending upon region and level of accreditation.

Appraisers can provide unbiased advice regarding relevant markets for selling an item. Not all property needs to be appraised before a sale. For example, many appraisers recommend that items with lower values (vintage Coca Cola bottle) be sold at regional auctions.

Ideal circumstances require that the appraiser physically inspect the property to conclude accurate value, based on identification and condition. If the item is damaged or lost, however, a photograph might be the only surviving documentation. This extraordinary circumstance is a limiting condition that the appraiser must disclose in the report.

The appraisal process varies according to client’s need, complexity of the job, and the appraiser’s current caseload. Most appraisal reports are delivered four to six weeks after the inspection. Complex appraisal projects can take longer.

An appraiser asks questions to determine the scope of research that will be needed. Appraisal of a Tiffany lamp for the owner’s insurance coverage requires different data than if the same lamp is being valued for a bankruptcy trustee.

The American Society of Appraisers (ASA) has two classes of membership: Candidate and Member. Candidates are entry-level appraisers who are not yet accredited. The Member class of accredited designations includes Accredited Member (AM), Accredited Senior Member (ASA), and Fellow Accredited Senior Appraiser (FASA). 

An appraiser must invest in academic study and hands-on, full-time experience; and must prove competency through passing qualifying examinations in valuation theory, ethics, and at least one specialty, plus peer-review approval of appraisal reports. AM designation requires two years of full-time appraising experience, and ASA designation requires five years. FASA is the highest level, only awarded to ASA-level members by the Board of Governors for notable contributions to the society and the appraisal profession. For more information, click here.

ASA appraisers back up their opinions with explanation and relevant evidence. The IRS and others recognize ASA appraisers as “qualified”, because they are trained in valuation, tested for competence in specific types of personal property and prepare reports in accordance with Uniform Standards of Professional Appraisal Practice (USPAP).

An offer to purchase property just appraised by the appraiser could be construed as a conflict of interests. If this happens, just say, “No thanks.”

First, find a museum willing to accept your gift. Then, call the appraiser.

Ask your accountant and legal advisor, or read the most current version of IRS Publication 561.