What to look for in selecting an art appraiser and appraisal format in Miami and South Florida.
Selecting an Appraiser
The Do’s of finding an Art Appraiser:
- Make sure the appraiser is accredited and recognized by one of the three appraisal organizations such as The International Society of Appraisers – ISA, The Appraisers Association of America – AAA, or The American Society of Appraisers – ASA.
- Verify that the appraiser has successfully completed the required qualification courses such as the Fine Arts Course (ISA), Residential & Contents Course (ISA), or that the appraiser has auction house experience or college courses in the fields you wish to have appraise.
- Verify that the appraiser is willing to support their findings and value conclusions.
The Do Not’s of finding an Art Appraiser:
- Do not select an appraiser that charges a percentage of the appraised value.
- Do not select an art appraiser that charges a percentage of the appraised value or charges a contingency fee.
- If the appraisal is handwritten or unsigned by the appraiser, do not accept it.
- Verify that the appropriate “Purpose” or “Assigned Use” is stated.
- Make sure the items in the appraisal are not beyond the appraiser’s knowledge.
- Do not select an appraiser who is not willing or able to defend his or her findings in a court of law.
- Verify the effective date of an Estate Tax appraisal is the date of death.
Selecting an Appraisal Type
Insurance Appraisal: The purpose of insurance appraisals are to protect your personal property from hurricanes, loss due to fire, theft and damage. Insurance appraisals are valued at Replacement Cost, New or Used. The Replacement Cost is the estimated cost to either purchase, reproduce, or manufacture an item that is identical to, or an acceptable substitute for the subject property. Replacement Cost New is the cost necessary to replace an item with a new item of like kind, utility, and having similar qualities within a reasonable amount of time in the relevant marketplace. Replacement Cost Used is the estimated cost necessary to replace an item of property with a used or comparable property. Insurance appraisal values should be updated every 5 years.
Estate & Probate Tax Appraisal: An estate and probate tax appraisal will determine the Fair Market Value of the personal property of an estate. These appraisals are based upon the sales comparison approach and Fair Market Values or “the price that property would sell for on an open market between a willing buyer and a willing seller with neither being required to act, and both having reasonable knowledge of the relevant facts”—Appraisers Association of America, Inc. Fair Market Value appraisals are used for estate planning, valuing tangible personal property, equal distribution, and determining Federal estate tax liability. Each state varies on estate tax rules, so be sure to check with your accountant for your state needs.
Divorce & Equal Distribution Appraisal: Equitable Distribution Appraisals, which are based on Fair Market Value or marketable cash value, are often used for distributing property in divorce settlements and business dissolutions. These appraisals can also benefit clients wishing to distribute antiques and family heirlooms among their children or distribute items to various members of an estate.
Loss/Damage Claim Appraisal: Required by an insurance provider, a Damage Appraisal determines Replacement Costs, Used and New, for total or partial damage to property. A Damage Appraisal includes factors such as the property’s original value, any necessary restoration fees, and the value of the property after it has been restored. Salvage value and loss of value may also be considered. Replacement Cost Appraisals are written for insurance coverage and are intended to reflect retail replacement value. A Loss/Damage Claim Appraisal is key to a fair settlement.
Charitable Donation Appraisal: When donating property that exceeds $5,000, the Internal Revenue Service requires the donee to submit a professional appraisal by a “qualified appraiser” with your tax return. The donor will receive a full tax deduction from the IRS with a comprehensive and precise report.. The appraiser will sign the 8283 form. There are strict guidelines set forth by the IRS for Fair Market Value defined as “the price that property would sell for on an open market between a willing buyer and a willing seller with neither being required to act, and both having reasonable knowledge of the relevant facts”—Appraisers Association of America, Inc.
We know that finding the right appraiser and service can be overwhelming! Don’t hesitate to call Tara Finley, ISA AM if you have any questions about the process or what type of appraisal is best for you.
305-446-1820 (Office) firstname.lastname@example.org (Email)