As an introduction, the role of an appraiser is to provide an unbiased opinion of value. They are not to accept assignments that place the appraiser into a position of advocacy for a client or client’s interest. 1 Appraisers should not allow outside parties to influence their opinion of value. Outside parties include nonprofits claiming to vet appraisers and choose who the client may or may not use as an appraiser, deconstruction contractors dictating the minimum value the appraiser must hit or clients who agree to engage an appraiser only if they receive a guaranteed valuation.
Appraisers must be “Qualified” per IRS definition. This includes education and experience requirements.
- 1The appraiser must have verifiable education and experience in valuing the type of property for which the appraisal is performed. Simply sitting through some training courses is not sufficient
- 2As of the date of signing, the individual has satisfied the following requirements:
- aSuccessfully completed professional or college-level coursework in valuing the type of property and has 2+ years-experience, or
- bEarned a recognized appraiser designation for the type of property.
Designation from a recognized appraiser organization: Are the appraisers accredited members where it can be assumed they have received comprehensive education and training in USPAP and principles of valuation? Were written exams and peer reviews part of this education.
The American Society of Appraisers (ASA) and International Society of Appraisers (ISA) stratify membership and accreditation levels as follows:
ASA Levels:
Only designated members in good standing are permitted to use the name and logo. This does not include candidates.
ISA Membership Levels:
Finally, while there can be competent and experienced deconstruction appraisers lacking a college education, the attainment of an undergraduate and graduate degree in complementary subjects is critical for a higher-level understanding of the underlying tax and accounting concepts. Especially when preparing an opinion of value to be used for a federal income tax deduction. The rigors of attaining both an undergraduate and graduate degree prepare an appraiser to comprehend the valuation models as well as executing proper judgment when including or excluding relevant markets, sales data and statistical analysis of data.
Reference Links:
1American Society of Appraisers, Monograph 13: Ethics and the Personal Property Appraiser
2Ibid.
