Personal property appraisal work can be an excellent extra source of income for auctioneers, but it is not with out its trials. A fellow auctioneer and friend had told me a story even though we had been in the Auction Advertising Institute’s (AMI) sponsored GPPA (Graduate Personal Property Appraiser) class in Orlando, FL in 2002. He recounted an embarrassing situation where he was supplying expert witness testimony prior to a judge for an appraisal case. He was 1 of 3 appraisers in the courtroom. Thankfully for him, only he and one other appraiser were inside a couple thousand dollars of each and every other on this high dollar case. The third appraiser was virtually 1 hundred thousand dollars away from any realistic value, and as such, he was summarily dismissed by the judge. Though my friend had 25 years of experience in appraising, he was ultimately dismissed by the judge because the other appraiser was certified, and further he utilized the USPAP (Uniform Standards of Skilled Appraisal Practice) guidelines to write his report. My friend, although an expert in the disputed area, was not certified as an appraiser at that time. He told me that soon after that embarrassing encounter that he was going to acquire the training to turn out to be a certified appraiser as soon as feasible. The moral of this story is unless you are a certified appraiser your expertise, although important and possibly relevant, does not mean significantly to the legal authorities.
As a certified appraiser, I get calls all of the time from prospective customers who believe I am the Antique’s Road show. Further, they think that I am going to appraise their items at no charge. Guess again? The appraisals on the Antique’s Road show don’t mean anything considerable, as they are far more akin to a Desktop Opinion (A preliminary step to a full appraisal.). Have you ever noticed an appraiser on the Antique’s Road show present their appraisal in writing? I tell my clients that I charge either an hourly rate or a flat fee, and those who would charge you a percentage of value are violating USPAP and federal law. This is the best way to spot someone who is uncertified!
At times I even receive calls from folks asking me to appraise their homes. I politely explain that Personal Property is distinct from Genuine Property (Buildings & Land). Genuine Property appraisal calls for a license in most states. The only building exempted is my state is a Mobile Home. Check with your state for laws pertaining to appraisers.
Occasionally, the challenging consumer will object to hourly rates or flat fees, stating “that such and such a business will write an appraisal for me for a lot much less.” I inform the would-be consumer that there is a lot of time, research, and writing of a report. I query the potential customer, and ask them (1) what certification does this other appraiser possess, and (2) what is their “basis of valuation” or (3) “approach and definitions to value”? Lastly, I politely inform the complainant that if they want invest their difficult earned money on such a questionable appraisal, I would gladly provide them with a more comfortable roll of Charmin, that may possibly be much more useful to them instead.
The bottom line is this, as an appraiser you are only as excellent as your training, experience, and certification. With no a certification you only have an invalidated and basically worthless opinion. Your uncertified opinion is meaningless in court, particularly when you are supplying expert witness testimony on appraisals in locations such as marriage dissolution, bankruptcy, probate & will, or insurance matters.
There are a lot of organizations that supply appraisal certification programs. Caveat Emptor (Buyer beware.)! The International Society of Appraisers (ISA) is one of the largest certifying boards. For much more details on becoming an appraiser get in touch with contact one the several appraisal organization’s internet web sites offered online.
Tom DiNardo is a Benefit Auctioneer and founder of DiNardo & Lord Auctioneers. He is also certified master appraiser, professional witness, and sommelier and wine educator. To get in touch with Tom, please pay a visit to or call (888) 503-0828. © 2010 Tom DiNardo. All rights reserved.
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