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BECOMING AN APPRAISER
There are a variety of ways to become a Personal Property Appraiser (PPA). In recent years there has been a trend by many antique dealers towards appraisals as a source of not only added revenue, but in many instances, as a replacement for primary storefront income. The requirements for such a title - Personal Property Appraiser - are tenuous at best. ome states (and Provinces) require only that you fill out a !"oin# $usiness As% license, but many do not. There is no !federally mandated% national or international set standard whereby an individual see&in# to become an 'appraiser' in the field of antiques and collectibles is (ud#ed accordin# to his or her specific &nowled#e of antiques and collectibles. The )niform tandards of Professional Appraisal Practice * ) PAP (principles initiated by the ). . +on#ress in the mid ,-./0s) posits #uidelines for !conduct% in the field of appraisin#, but does not impart sub(ect or item !&nowled#e.% In short, most antique appraisers are qualified to do the (ob at hand, simply because they say they are - while this may not necessarily seem li&e sound reasonin# - it is not meant to imply that the ma(ority of today1s antique appraisers are unqualified, only that the common denominator most often used when hirin# them, is that they own and operate their own antique business - in other words, most people are as apt to search the 2ellow Pa#es under the headin#, 'Antiques' when loo&in# to have their collection appraised or evaluated, as they are 'Appraisers".

In many ways this sort of 'laisse3-faire' approach to appraisals wor&s quite well within the free mar&et system. $y usin# individuals who have actual practical e4perience within the world of antiques (such as antique dealers), these individuals are able to le#itimately appraise the value of items due to their intrinsic involvement within the chan#in# price structure of their own industry.

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5owever, as with any unre#ulated business, the difference in the de#ree of &nowled#eable professionalism and accuracy is bound to vary #reatly.

As an e4ample of this, if one were to ta&e the owner of a small shop in a little mid-western town, who dealt almost e4clusively in #lass mason (ars, and who0d been in business for two years, as a possible choice for an appraiser of old wine bottles, you could probably reasonably assume that your appraisal would li&ely be conducted with some de#ree of &nowled#e and e4pertise. 5owever, you would have to consider this individual to be an unli&ely (not to mention unwise) candidate for an appraisal of authentic 6eor#ian furniture. A#ain, this is not to say that this individual would not be qualified to #ive an opinion in his or her area of e4pertise, but only that, ideally, in a perfect world, the 'ideal' appraiser would embody a lifetime of practical e4perience as well as a professorial &nowled#e of topics and sub(ects that ran#ed from A to 7. 5owever, in the real world, what most clients and insurance companies desire (and e4pect), is someone who is #rounded in the fundamentals of antiques, who &nows their real mar&et value, who can discern the difference between fa&es and reproductions, and someone who has the proven trainin# and bac&#round to demonstrate these traits in a professional and ethical manner.

Appraisal Practices And Methodology

There is also another consideration when it comes to appraisin# that has become increasin#ly more relevant in that last few years * appraisal ethics, and methodolo#y. Aside from simply possessin# the &nowled#e of the value of certain items, an individual who represents themselves as an appraiser has an obli#ation to the public to be sufficiently competent to fulfill the obli#ations that attach to the appraisal role and to the requirements of each specific appraisal assi#nment. In short, clients are now demandin# that appraisers hold

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themselves to the same strict professional codes of conduct that any other professional association would require.

This new shift in emphasis from simply bein# a storefront owner8dealer8appraiser, to an appraiser who must now conduct his business by an increasin#ly strin#ent set of rules, laid out by a series of #enerally accepted principles that have been formulated over time and practice, has led to a number of #roups that are speali3in# in the promul#ation of !appraisal theory.% In essence, or#ani3ations such as, The Appraisal 9oundation which formulated The )niform tandards of Professional Appraisal Practices () PAP) in ,-.:, is lar#ely responsible for this new shift towards professional accountability in the appraisal field. The standards that they propose are desi#ned to imbue individuals with the understandin# that allows them to be able to correctly employ appraisal theory, methods and techniques necessary to develop a credible value opinion that is in compliance with ) PAP principles. ;ost of the standards that have been laid out by the ) PAP are common sense in approach, and include such principles as, a code of ethics, e4pectations of due dilli#ence, and impartialism.

This move towards a re#ulated series of principles does not in any way diminish the validity of an appraisal conducted by a competent individual who is well versed in his or her sub(ect matter, but does not adopt (verbatum) the theories, either in whole or in part, of the ) PAP. 5owever, as a common sense approach to a unifyin# set of standards and practices, the ) PAP has mana#ed to coherently put to#ether a series of #uidelines for appraisers to follow. As stated before, many of these principles are common sense in nature, and are drawn from sources (such as e4istin# appraisal practices) that have already historically adhered to such #uidelines in the past. <evertheless, the benefit of a published !code% of conduct and representation is certainly of value. ince ,-==, the Asheford Institute has included its own Professional Appraiser +ode of +onduct (PA++) as an ori#ination point for those students

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wishin# to become qualified appraisers in the field of antiques and collectibles. As an Institution of hi#her learnin#, we0re #lad to see that other or#ani3ations are also settin# requirements whereby appraisers are (ud#ed by increasin#ly hi#her standards re#ardin# their professional practices and code of conduct. >e encoura#e students to e4amine these principles from ) PAP, the International ociety of Appraisers and any other or#ani3ations that promote professional ethcial conduct codes, as supplemental research to your +ourse studies.

Note: the upcoming AIA Professional Appraiser Code of Conduct (PACC) rules are mandatory reading for all Asheford Appraisal students, and will be an intregal part of your Plan 5 Appraiser !amination"

Appraisal Organizations
If you would li&e more information re#ardin# the aforementioned or#ani3ations, you can contact them at the addresses listed below. ?e#ional @ International Ar#ani3ationsB ,. Appraisers Association of America - C.= Par& Ave. outh, uite D///, <ew 2or&, <2 ,//,= D. International #ociety of Appraisers - ,=/E/ +hristensen ?oad, uite CD/, eattle, >A -.,..-D-DC. $he American #ociety of Appraisers - International 5eadquarters Fducation "epartment, GGG 5erndon Par&way, uite ,DG, 5erndon, HA D/,:/

AIA - PRO ESSIONA! APPRAISER CO"E O CON"#C$ %PACC&

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As mentioned previously, all students will need to familiari3e themselves with the Asheford Institute of Antiques !Professional Appraiser +ode of +onduct% (PA++). These principles are the cornerstone for the methodolo#y used in conductin# appraisals and must be strictly adhered to at all times.

$y combinin# these #uidelines of conduct and practice with your product &nowled#e of antiques and collectibles you are establishin# a foundation from which your !appraisals% can proceed - this foundation allows you to bac&-up any claims of conduct or methodolo#y by referencin# the applicable criteria within the PA++ codes.

The lan#ua#e used within the PA++ codes may at times seem overly academic, and somewhat removed from the world of antiques and collectibles, however, the lan#ua#e has been drafted in this fashion with the intent of providin# as e4act a description as possible, of each rule, re#ulation and #uidin# principle as it pertains to the A.I.A.0s Professional Appraiser +ode of +onduct. >ithout the use of such precise terminolo#y and meticulous lan#ua#e, the PA++ codes could be left open to a wide de#ree of interpretation that mi#ht inevitably lead to contradictions of fact and assumption within certain appraisals.

The #uidelines laid out in the PA++ are e4tensive and comprehensive, but should be easily understood and readily absorbed by reviewin# the information carefully. (Note: $he PACC will be part of your Plan 5 Appraisal !amination) (Note II: $he PACC principles are applicable to Canadian appraisers as well)

AIA ' PRO ESSIONA! APPRAISER CO"E O CON"#C$ %PACC&

(-( PACC Codes) $he R*les set +orth here are co,p*lsory in nat*re- and ,ay not .e de/iated +ro, in any 0ay1

Initial Identi+ication)
(1 Identi+y the ite,%s& and di++ic*lty in appraising s*ch ite,s1 21 Identi+y the a,o*nt o+ in/estigati/e analysis and research necessary to co,plete a co,petent appraisal1 31 Identi+y the a,o*nt o+ 0or4 necessary to co,plete the appraisal in its entirety<ATF B Items ,-C are desi#ned toward the material and practical aspects of settin#-up a competent appraisal of personal property in the field of antiques and collectibles. The items list of , throu#h C included in the I<ITIAI I"F<TI9I+ATIA< headin# are to be used in a sequential order when considerin# the structure of an antique or collectible appraisal.

(-2 PACC Codes) $he R*les set +orth here are co,p*lsory in nat*re- and ,ay not .e de/iated +ro, in any 0ay1
When constructing a personal property appraisal an appraiser must: %a& create a legiti,ate appraisal that is .ased on a cogniti/e *nderstanding o+ the ,ethods *sed to +*lly and correctly *tilize the recognized techni5*es that are re5*ired to cra+t a relia.le appraisal6
<ATF B >ithin this coded rule, the AIA reco#ni3es that nothin# is immutable and that the mar&et with which the appraiser conducts his appraisal in is constantly evolvin#. The transformation and chan#e over time in the field of personal property can have a si#nificant, and meanin#ful effect on the appraisal profession. Amendments to how one acquires personal property, how that property is created and mar&eted, the costs associated with such property, and

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the potential le#al chan#es that can result from these adaptations, can all have an effect on the standards and practices laid down in the Professional Appraiser +ode of +onduct. As times and rules chan#e within societies, so must the codes of the PA++. To this end, the AIA reco#ni3es that these chan#es must be mana#ed and updated within the framewor& of the initial PA++ * new challen#es to the appraisal profession, must be met by new rules which #uide and #overn these challen#es. At the same time, it must be noted that appraisers must also meet these new challen#es by constantly strivin# to improve their &nowled#e base and understandin# of the chan#in# mar&et around them.

%.&

not precl*de any in+or,ation as a res*lt o+ an error- or lac4 o+ ,etic*lo*s e++ort that ,ight apprecia.ly in+l*ence the o*tco,e o+ an appraisal6
<ATF B >hen conductin# an appraisal, the appraiser must use all caution and effort to ensure that the information that is collected is done so in a dili#ent and responsible fashion. This means that the information collected which has a si#nificant bearin# on the outcome of the totality of the appraisal, be presented clearly and concisely, and with #reat care to the avoidance of mista&es or omissions that would adversely affect this result.

%c&

not cond*ct an appraisal in a rec4less or inattenti/e +ashion- that ,ay ca*se indi/id*al concl*sions 0ithin the appraisal to .eco,e distorted- and th*s a++ect the acc*racy o+ the co,pleted appraisal as a 0hole1
<ATF B Attention to detail is necessary in order for an appraiser to avoid lar#er errors. A flawless appraisal is not possible, and an appraiser cannot be e4pected to perform without some de#ree of error. 5owever, the effort must be put forth by the individual appraiser to ne#ate as many errors as possible, by initiatin# due dili#ence and care on their part durin# the investi#ation of appraisal related material. This effort alone, constitutes a de#ree of competency on behalf of the appraiser.

8 (-3 PACC Codes) $he R*les set +orth here are co,p*lsory in nat*re- and ,ay not .e de/iated +ro, in any 0ay1

When constructing a personal property appraisal, an appraiser must: %a& %.& recognize the end-*ser and any other intended clients o+ the appraisal6 ascertain the proposed *se o+ the appraisal6
<ATF B It is necessary to understand the final use of the proposed appraisal in order for both parties (appraiser and client) to determine A.) 5ow much wor& will be required to conduct such an appraisal, as well as, $.) The amount of !content% material that will have to be included within the appraisal in order to convey the requisite amount of &nowled#e necessary to satisfactorily complete such an appraisal. Appraisers must remain as ob(ective as possible when considerin# the content of a proposed appraisal, and not alter their considerations of fact in any manner whatsoever, based on the intended final use of the appraisal by the client.

%c&

recognize the reason o+ the tas4 ' an assess,ent o+ /al*e .ased on the 4ind and characterization o+ the /al*e to .e o++ered1 "eter,ine 0hether this appraisal /al*e is ,ost li4ely to represent c*rrent ,ar4et prices in ter,s o+) ( a1& 2 a1& 3 a1& 7 a1& c*rrency6 or pro/ided in ter,s o+ +iscal pro/isions co,para.le to cash6 or in stip*lations that speci+ically denote clearly de+ined ter,s1 8o0e/er- i+ the assess,ent o+ the /al*e .ased appraisal is not to .e ,ade solely on c*rrent ,ar4et conditions- .*t rather on secondary considerations- then these iss*es ,*st .e clearly de+ined 0ithin the appraisal as to their positi/e or negati/e e++ect- and to that e9tent- ,*st then also .e in/estigated 0ith care+*l deli.eration in regard to co,para.le data +ro, 0ithin a si,ilar ,ar4etplace1
<ATF B If an estimation of value is #iven with re#ard to a particular mar&et consideration (for e4ampleJ an antique toy is valued based on its sale potential at

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a number of hi#h-end toy conventions within a #iven period of time), then the appraisal must include a !time-sensitive% stamp indicatin# that the valuation of the toy has been appraised in relation to its potential ability to be sold at a particularly specific place within the mar&et.

%d& %e&

apply a ti,e-sta,p date to the appraiser:s opinions and concl*sions6 recognize the indi/id*al traits o+ the property .eing appraised that are pertinent to the rationale and proposed *se o+ the appraisal- incl*ding) ( .1& eno*gh distincti/e 5*alities to ade5*ately ascertain the identity o+ the ite, incl*ding the ,anner o+ disco/ery6 2 .1& ade5*ate e9a,ples o+ indi/id*al traits that can .e *sed to deter,ine the general 5*ality o+ the ite, 0ithin a co,para.le category6 3 .1& all other characteristics that ,ight ha/e a signi+icant e++ect on the /al*e o+ the ite,6
<ATF (C b.)B 6eneral characteristics that could be included in this list would

ran#e from (but are not limited to)J restorations to an item that may have been altered or modified from its ori#inal state, a#e, the materials that were used in construction of the item, history and ori#in of the item * includin# the manufacturer, consideration for desirability in re#ard to style, si3e and quality of construction of the item, as well as #eneral condition. The characteristics that have a material effect on value are based on the type of property and the purpose and intended use of the appraisal.

7 .1& ; .1&

the /al*e held .y the o0ner ' either in 0hole or in part6 ta4e into consideration any recognized li,itations- 0ith regard to +inancial i,pedi,ents that incl*de.*t are not restricted to6 enc*,.rances- declared and *ndeclared contracts- declarationsco/enants- leases- ordinances- reg*lations- special assess,ents- etc1and6

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< .1&

any additional property 0hich 0o*ld not .e considered to personal .e property .*t 0hich 0o*ld .e incl*ded in an appraisal1

<ATF B on (Eb.)*(=b.)B >hen conditions arise that limit the appraisers ability to properly conduct their assessment, due to difficult location requests, poor viewin# sites, questionable sources of secondary information, or any other unforeseen circumstances, appraisers are required toB %a-(1& acquire the essential information needed before continuin# with their

appraisal, or%a-21& in e4treme cases, where all other avenues have been e4hausted, use a

!best #uess% scenario (see PA++ code ruleB #) about such information.

$oo&s, the Internet, visual inspections, a pre-e4istin# &nowled#e base, and individuals with &nowled#e of the item(s) in question, are all acceptable sources from which an appraiser may derive their conclusions from, however, the information #leaned from these sources must be properly assumed to be dependable and trustworthy in nature by the appraiser. Partial content appraisals may be conducted when an appraiser is evaluatin# only a section or samplin# of a complete se#ment. Items that are part of the !whole% may be considered on their own.

%+&

recognize the a,o*nt o+ la.or re5*ired to cond*ct the appraisal6

<ATF B The amount of wor& deemed necessary, may be considered reasonable, provided that it is in &eepin# withB %.-(1& what other individuals in the mar&et would (ud#e to be an analo#ous amount of effort for an appraisal of the same natureJ and %.-21& what other appraisers, with similar e4perience, bac&#round and e4pertise would be when conductin# an appraisal of comparable scope.

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Kustification for the level of wor& required to complete an appraisal is necessary for all appraisers. In addition to this, appraisers must also be able to refute reasons as to why certain information was not included within an appraisal, especially as it relates to issues and factors deemed important by the client. <ecessary, or relevant omission may be used in such cases. The requisite amount of research and investi#ation for an appraisal must be conducted thorou#hly, deliberately and without re#ard to the possible influence of potential limitations or circumstances that mi#ht affect the final outcome of the appraisal in a ne#ative or biased way.

%g&

recognize any =.est g*ess> scenarios in an appraisal6 and

<ATF B )sin# a !best #uess% scenario is recommended only in cases whereB %c-(1& %c-21& %c-31& it is vital in the assumption of maintainin# accurate and plausible beliefs and conclusions that support the appraisalJ the appraiser has a credible foundation for usin# the !best #uess% scenarioJ the !best #uess% scenario enhances and adds to the validity and inte#rity of the component parts of the appraisals research and investi#ative elementsJ and %c-71& all !best #uess% scenarios are clearly and demonstrably disclosed by the appraiser, and that the Asheford PA++ rules that #overn these cases are also plainly e4pressed to the client within the appraisers final report.

%h&

recognize any theoretical scenarios re5*ired +or the appraisal1

<ATF B )sin# a theoretical scenario is recommended only in cases whereB %d-(1& it is vital in the assumption of maintainin# accurate and plausible beliefs and conclusions that may be necessary for use within a le#al framewor&J %d-21& %d-31& it is required for the function of investi#ative and research purposesJ it is required for purposes of comparisonJ the appraisalJ and

%d-71& it0s use adds to the le#itimacy of a credible investi#ative component within

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%d-;1& all theoretical scenarios are clearly and demonstrably disclosed by the appraiser, and that the Asheford PA++ rules that #overn these cases are also plainly e4pressed to the client within the appraisers final report.

(-7 PACC Codes) $he R*les set +orth here are precise in nat*re- .*t do allo0 +or so,e de/iation1
?hen constr*cting a personal property appraisal- the appraiser is re5*ired to gather all necessary rele/ant in+or,ation needed in order to cond*ct a proper in/estigati/e e9a,ination o+ iss*es that relate to the o/erall concl*sions o+ the appraisal %0ithin the g*idelines as set +orth in (-3 PACC Codes ' +1& %a& ?here appropriate- recognize the e++ect o+ ,a9i,*, and .est *se .y 5*anti+ying and scr*tinizing all possi.le aspects o+ rele/ant in+or,ation +ro, a legal- pro+ita.le and pro.a.le perspecti/e- as it pertains to the end-*se o+ the intended appraisal6 %.& $here are a /ariety o+ ,ar4ets +ro, 0hich the /al*e o+ personal property can .e ,eas*red1 $hese /ario*s ,ar4ets ,*st .e ta4en into consideration 0hen e/al*ating s*ch property- and direct application to the ,ost li4ely ,ar4et sho*ld .e applied 0ith regard to the intent o+ the proposed appraisal6 and
<ATF B Prices for items can vary #reatly within individual mar&etplaces. It is the appraisers responsibility to understand and reco#ni3e these different price-points within their investi#ations of each mar&etplace. This is especially true within the antique and collectibles mar&etplace, as an auction value will vary #reatly from a retail value, or an insurance value. Thus, the intended final use of the appraisal is of #reat importance in determinin# the type of mar&etplace you will use to analy3e your sub(ect property.

%c&

E9a,ine the c*rrent and ,eaning+*l econo,ic circ*,stances that pre/ail d*ring the ti,e o+ the /al*ation- as 0ell as the c*rrent desira.ility o+ the property 0ithin the conte9t o+ its rarity or scarcity1

13 (-; PACC Codes) $he R*les set +orth here are precise in nat*re- .*t do allo0 +or so,e de/iation1
?hen constr*cting a personal property appraisal- the appraiser is re5*ired to gather all necessary rele/ant in+or,ation needed in order to cond*ct a proper in/estigati/e e9a,ination o+ iss*es that relate to the o/erall concl*sions o+ the appraisal %0ithin the g*idelines as set +orth in (-3 PACC Codes %+&1& %a& I+ *sing a co,parison analysis .ased on sales +ig*res- the appraiser ,*st e9a,ine all rele/ant sales data to +or,*late a concl*sion .ased on /al*e1 %.& I+ *sing a cost analysis 0ithin an appraisal- an appraiser is re5*ired to) %e-(1& e9a,ine rele/ant data si,ilar in nat*re- in order to deter,ine the cost o+ the property i+ it 0ere ne06 and %e-21& e9a,ine all in+or,ation as it pertains to the accr*ed depreciation .et0een its c*rrent /al*e- and the cost associated 0ith the property .eing ne01 %c& I+ *sing an inco,e ,ethod 0ithin an appraisal- an appraiser is re5*ired to) %+-(1& e9a,ine and re/ie0 si,ilar c*rrent co,para.les that allo0 +or an esti,ate o+ ,ar4et inco,e +or the property .eing appraised6 %+-21& e9a,ine and re/ie0 si,ilar c*rrent co,para.les that allo0 +or an esti,ate o+ the operating e9penses o+ the property6 %+-3& e9a,ine and re/ie0 si,ilar c*rrent co,para.les that allo0 +or an esti,ate o+ rates o+ disco*nt and@or rates o+ capitalization6 and %+-71& *se /alid proAections to predict inco,e and e9penses in the +*t*re1

<ATF B There are a number of elements that an appraiser must adhere to when creatin# cash-flow forecasts and income and e4pense statements. 9actors to ta&e into account include, local competition, re#ional and national trends, supply availability, and #eneral demandJ these are all necessary considerations for the appraiser.

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%d& ?hen +or,*lating a A*dg,ent on the proposed /al*e o+ a lease or leased property- consideration ,*st .e gi/en to %i+ applica.le&- the conditions and ter,s 0ithin that lease- and their res*lting e++ect on the /al*e o+ the lease- and the personal property contained 0ithin1
<ATF B Appraisers must consider separate issues of value when appraisin# items that are associated with real property. 9or e4ample, a lease on an antique booth at an antique mall must be analy3ed from a number of different perspectives i.e. the cost of the lease in relation to the overall inventory, the cost of the lease in relation to the #oodwill #enerated, the cost of the lease in relation to overall sales, etc. >hen appraisin# not only the actual property, but its relationship to the intan#ibles of the !space% within the antique mall, many considerations must be ta&en into account in order to establish a relevant value for personal property.

%e&

?hen e9a,ining the indi/id*al parts that constit*te a property- an appraiser ,*st .e care+*l not to attri.*te /al*e solely .ased on the s*, o+ the parts e5*aling the 0hole1 In ,any cases the indi/id*al s*,s ,ay ha/e di++ering /al*es irrespecti/e o+ their connection to the 0hole1 <ATF B In many cases the value of the whole will often be equal to that of its separate parts. 5owever, the individual parts may also end up bein# #reater than or less than the sum of such parts. +onsequently, the value of the whole must be sub(ected to comparative analysis, with conclusions bein# drawn based on the study of such an analysis. +onversely, when the value of the whole is understood, but the appraisal requires a division of the whole in order to ascertain the value of a part. Then the value must a#ain be sub(ected to comparative analysis, with conclusions bein# drawn based on the study of such an analysis. A #ood e4ample of this mi#ht be an antique dinnerware settin# * as a complete set, the value of all cups, side plates, dishes and saucers mi#ht be less, then if the carver platter was to be valued individually. This can be the result of many factors, includin# desirability, scarcity, and supply and demand * if the main carvin# platter was in hi#h demand but hard to find, it is possible that it would outstrip the value of its whole, due in part to some of these factors.

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%+& I+ ,odi+ications are li4ely on an ite, intended +or appraisal- then consideration ,*st .e gi/en to the e++ect on +*t*re /al*e- +ro, the ti,e the appraisal 0as co,,issioned

<ATF B ;odifications can often occur in areas such as antique automobile restoration, as well as furniture restoration. Those modifications that are intended, but not yet complete, with have a value effect on these items in the future.

%g&

An appraiser ,*st separate +ro, the 0hole- those co,ponents 0hich are not personal property- .*t indirectly a++ect the /al*e o+ personal property as a 0hole1
<ATF B If the value of property bein# appraised includes real property, then the appraiser should limit his or her analysis and conclusions to only that sub(ect matter that the appraiser is competently qualified to appraise. 9or e4ample, if an antique business is bein# sold with all inventory included, then a !comprehensive% appraisal may require not only an analysis of inventory, but buildin#s, equipment, location etc. It is therefore necessary that the appraiser list only opinions and conclusions that are relevant to his or her area of e4pertise.

%h&

I+ ,odi+ications ha/e .een co,pleted on personal property prior to an intended appraisal- an appraiser ,*st incl*de) %g-(1& proper doc*,entation that clearly identi+ies the range and e9tent o+ the ,odi+ications cond*cted6 %g-21& a ti,e-sta,p indicating the starting date and co,pletion date o+ the ,odi+ications6 and %g-31& a clear and concise state,ent o+ *nderstanding as to 0hy the ,odi+ications 0ere i,ple,ented initially1
<ATF B +reatin# an assessment of value with re#ard to modifications will require detailed comparative analysis. ;any antique items have limits on the percenta#e of allowable modifications. The evidence required to be e4amined

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may include (but is not limited to), the provenance of the item, previous repairs or modifications, re#ional desirability, other components of the item affected by the modification, etc. Appraisals such as this, may require a complete feasibility analysis.

(-< PACC Codes) $he R*les set +orth here are co,p*lsory in nat*re- and ,ay not .e de/iated +ro, in any 0ay1

?hen constr*cting a personal property appraisal that is to .e e/al*ated .ased on c*rrent ,ar4et conditions- an appraiser ,*st) %a& e9a,ine6 all pre/io*s o++ers o+ sale or p*rchase- consign,ent o++ers- as 0ell as any c*rrent sale listings o+ the property6 and %.& e9a,ine any pre/io*s sales o+ the property in 5*estion- that are 0ithin a reasona.le scope o+ ti,e as it pertains to the c*rrent appraisal1
<ATF B The information necessary to complete such an e4amination of past data, may not always be available or relevant to all appraisals. 5owever, as part of due dili#ence, it is required that you attempt to #ain as much of the information as possible. If none of the information is available, then this should be specified within your appraisal.

(-< PACC Codes) $he R*les set +orth here are co,p*lsory in nat*re- and ,ay not .e de/iated +ro, in any 0ay1

?hen constr*cting a personal property appraisal- an appraiser ,*st) %a& .ring together all the /ario*s ele,ents o+ in+or,ation gathered and e9a,ined 0ithin the +ra,e0or4 o+ the PACC r*les6 and %.& to that end- apply those /ario*s theore,s in s*ch a 0ay as to cohesi/ely

17
*ni+y the o.ser/ations- in/estigations and analysis o+ /al*e concl*sions 0ithin the +inal appraisal1

INA! NO$ES) These rules are desi#ned to help appraisers &eep within certain ethical
#uidelines of conduct and principle. There will of course be instances, where these rules and codes alone will not be enou#h. At some point in time, it is li&ely that you will come across a situation that requires one to literally write their own !code% on the flyL >e hope that when this time comes, you will use your PA++ codes as the foundation for any possible future decisions you mi#ht ma&e re#ardin# appraisin#.

18

$8EORB C PRAC$ICE
As with almost all well intentioned ideas, there is often a disconnect between theory and practice. Appraisal pro#rams or or#ain3ations such as those mentioned previously, are desi#ned primarily to teach !appraisal principles and methodolo#y% * not product &nowled#e. In other words, they do not teach the &nowled#e about the type of property you0ll be speciali3in# in as an appraiser. They do not teach in-depth product &nowled#e about furniture, silver, (ewelry, porcelain and paintin#s * or any other item for that matter * but rather the methodolo#y of how to appraise those items. This is in no way meant as a detriment to what these or#ani3ations do, but only a reco#nition of fact that their primary #oal is to impart theoretical principles about practical ob(ects. It is a prime e4ample of !form% versus !function% * the understandin# of how to arrive at a valuation, but without the requisite sub(ect &nowled#e to ma&e those results meanin#ful. It is in this respect, that your Appraisal trainin# from the Asheford Institute differs from these other or#ani3ations. The Institute is able to !certify% its appraisers because our pro#ram teaches both the methodolo#y as well as the product &nowled#e necessary for appraisin#. Thou#h our course offers a thorou#h #roundin# in appraisal principles and methodolo#y throu#h our Professional Appraiser +ode of +onduct (PA++), it is essential that one also have a thorou#h understandin# of the items bein# appraised in order to offer an opinion of value, in accordance with #enerally accepted professional appraisal standards. imply put, one should not appraise without havin# &nowled#e of the property to be appraised. This is a bi# distinction when it comes to listin# your credentials in the real worldL what this says in essence is, that you have actually studied your product and are familiar with it on a theoretical as well as practical level.

19
F4amine the upcomin# information in this section carefully, determine the tools you will need, apply it to what you have already learned in your +ourse te4tboo&s, and by the time you are done, you should be on the road to completin# your first appraisal.

Ins*rance Co,panies- !a0 O++ices- Estate Agents- Real Estate !i5*idators

Professional or#ani3ations such as insurance companies, le#al offices, estate a#ents etc., are aware of the value of product &nowled#e as well as the importance of methodolo#y when it comes to appraisin#. The emphasis of these or#ani3ations is to hire the most competent, and &nowled#eable appraisers to achieve the most relevant results for their clients. The criteria by which these or#ani3ations acquire these results is based on a number of factors, however, the three listed below are the most pertinentB

,.) "oes the appraiser bein# hired have the !&nowled#e% to sufficiently, and competently complete the appraisal bein# requestedM

D.) "oes the appraiser bein# hired have a suitable understandin# of the principles and methodolo#y required to conduct such an appraisalM

C.) Is the appraiser bein# hired !certified% by a qualified institution that reco#ni3es the ability of the appraiser to conduct such an appraisalM

These three factors are #iven the most wei#ht by professional or#ani3ations when it comes to hirin# an appraiser. 2our Appraisal +ertification from Asheford covers all three of these criteria. In fact, insurance companies and estate a#ents have lon# reco#ni3ed the A.I.A.0s ability to train and instruct its students to the hi#hest level of professionalism in the field of appraisin#. In addition to this, the Institute has also set-up an international database that is utili3ed and

20
referenced by insurance companies, estate a#ents and others for locatin# qualified appraisers in the field of antiques and collectibles. This is a clear-cut e4ample of how !real world% companies and or#ani3ations are loo&in# to hire not only appraisers with a theoretical &nowled#e, but those who have a #ood de#ree of hands-on practical &nowled#e as well.

21

APPRAISING ?I$8 REGAR" $O $8E IRS C REDEN#E CANA"A

In many instances the final intended use of an appraisal can end up bein# commissioned for, or reviewed by the Internal ?evenue ervice (I? ) or ?evenue +anada (?+). uch common e4amples would includeJ appraisal of property sub(ect to estate-ta4, appraisal of property involved in a divorce, appraisal of property involved in a net-worth assessment, plus a host of other possible scenarios. As with almost everythin# associated with the I? or ?+, firm and strin#ent rules are usually the norm. $oth of these or#ani3ations require strict adherence to their codes, and for this reason we are #oin# to devote some time to the rules and re#ulations that #overn appraisals bein# conducted that mi#ht at some point in time be reviewed or impacted by either the I? or ?+. In addition to this, the staff here at the Institute also feel that the bindin# requirements put forth by the I? 8?+ are some of the most code-specific, and ri#orous set of principles that have yet to be laid down in re#ard to appraisals. >ith this in mind, it is hi#hly recommended that you familiari3e yourself with these principles, as they will provide an e4cellent #roundin# in, and e4ample of, what may be required in an e4tremely detailed and precise appraisal.

Dal*ation Proced*res The procedures used by the I? 8?+ for valuation of personal property in re#ard to assessin# ta4 liability in #ift and inheritance cases is very similar in nature to procedures used for the purposes of charitable deduction. 5owever, usually only !antique% items that are deemed to be of a !substantial% value are required to evaluated by a credentialed appraiser. >hen these situations arise, the Internal ?evenue ervice and ?evenue +anada will specify that the donor of such items must provide the I? 8?+ with proper documentation to bac&-up any claims or assertions of value in re#ard to these items. Af primary interest to the I? 8?+ when e4aminin#

22
such appraisals areB the property as it relates to the current mar&etJ visual evidence of the propertyJ a comparable worth analysisJ cost basis (as well as the date and method of purchase)J a description of the property in involved, and any associated provenance.

?ho:s E*ali+ied $o Appraise or $he IRS C Re/en*e Canada %RC&F As has been mentioned throu#hout your Asheford te4ts, there is currently no 9ederal, tate (or Provincial) licensin# body for personal property appraisers. Althou#h the I? 8?+ is fully aware of this lac& of re#ulated standards, it has over the years, developed a competent list of 'pre-approved' appraisers that are chosen on an !as needed% basis, or in some cases, may even be hired on a si4-month to yearly contract dependin# on the amount of wor& involved. As an appraiser, credentials from or#ani3ations such as the I A (International ociety of Appraisers) or the AAA Appraisers Association of America can be of benefit when the I? 8?+ is conductin# a review of ones appraisal - however, the amount of time spent learnin# in an instructive, academic environment * that includes e4tensive product &nowled#e (such as that tau#ht throu#h the Asheford Institute of Antiques) is #iven the most credence and credibility by the I? 8?+. maller, and often more e4pedient or#ani3ations whose set-#oals are only loosely based on standards, and with little re#ard to the validity of their credentials, are usually i#nored by the I? 8?+. Today, the I? and ?evenue +anada are demandin# far more than (ust simple !desi#nations% when qualifyin# the le#itimacy of an appraiser * methodolo#y must now be combined with e4tensive product &nowled#e, in order for the I? 8?+ to consider the credentials of an appraiser as bein# of le#itimate value.

23

?hen "oes $he IRS C RC "ee, An Appraisal NecessaryF An appraisal of personal property that is inclusive of antiques and fine arts is usually necessary whenB ,. The property is substantive in nature and requires insuranceJ D. A third-party or correctly identified a#ent will be sellin# the property. C. The property bein# considered would be included in a net-worth assessmentJ E. The property bein# considered would be involved in a divorce claimJ G. The property bein# considered is transferred to an entity that is listed as non-charitableJ =. The property bein# considered is transferred to an entity (in life) that is listed as charitableJ :. The property bein# considered would be sub(ect to estate ta4J .. The property bein# considered would be sub(ect to #ift ta4.

The I? 8?+ requires analysis of this nature to help them ascertain the fair mar&et value of the property bein# appraised. This is #enerally cate#ori3ed by the I? 8?+ as an e4chan#e of property between two individuals (a buyer and a seller) at a set-price, neither of which is under any obli#ation, duress or force to conduct such an e4chan#e, with each party havin# sufficient &nowled#e of all pertinent facts that mi#ht relate to such a transaction.

24

8O? "OES $8E IRS C RC "E$ERMINE DA!#A$ION G#I"E!INESF

There are two revenue methods used by both the Internal ?evenue ervice and ?evenue +anada in order to impart procedures needed for the valuation of personal property. The first procedure ta&es into account the !reali3ed% sale price of an item within the mar&etplace as the template upon which !its% value is desi#nated. The sale of this item must have also occurred in a timely fashion with re#ard to the occurrence that initiated its sale in the first place. Also, mar&et conditions cannot have dramatically chan#ed from the reason for havin# the sale, to the sale itself. Additionally, appraisals cannot be based on price fluctuations that may have occurred a year or so after the initial occurrence of the decision to sell * prices must reflect the value of the property or item closer to the time of the ori#inal occurrence or intent to sell. If property is sold far later than ori#inally intended, then the sale price must be corrected bac&, to compensate for any chan#e in mar&et prices, or !older% comparables must be used instead of current mar&etplace values.

The second procedure is more common in appearance, but more critical in approach. The principles put forth here should be considered by the appraiser re#ardless of whether the property in question has been sold, or is yet to be sold. The I? 8?+, often concentrates its initial reviews of tendered appraisals, based on the followin# si4 criteriaB (Note: $hese are particularly important points for your Appraisal #tudies)

,. The )se Af +omparables. This is one of the most important factors to consider for any appraiser. The I? 8?+ are &eenly aware that many novice appraisers tend to ma&e evaluations without the use of comparable items that have sold within a similar

25
timeframe from the date of the evaluation. +omparables are often one of the best #uides to use when considerin# the value of personal property, and are an essential component of any appraisal that mi#ht be submitted to and reviewed by the I? 8?+.

D. Provenance. The attribution or ori#in of an item. >here it came from. This can have an effect on value * if a ,-E: +adillac came from the estate of 5umphrey $o#art, and was shown to have been driven by him on a re#ular basis, then this would have a dramatic effect on the value of the item as opposed to another +adillac that was manufactured in same year, was the same body style and model, but not owned by 5umphrey $o#art. Provenance can have a lar#e effect on value if its effect can be documented. ome items in the mar&et may also have the Provenance !factor% already built into their evaluation.

C. +ost $asis (as well as the date and method of purchase)J imilar in nature to provenance. This criteria is necessary when the item in question is bein# #iven as a charitable donation. A brief appraisal must be included on any ta4 returns that include this &ind of #iftin#.

E. A +omprehensive "epiction Af The Property. ;ore often than not, this is an area where appraisers often fall short. 2et it is certainly considered (by the I? 8?+) to be one of the most vital aspects of these criteria. )nfortunately it is often overloo&ed by the novice appraiser who too often ends up not payin# enou#h time or attention to detail when recordin# the attributes of the property or items in question. )sually, this lac& of thorou#hness has more to do with ine4perience than with ability. Appraisers who speciali3e in real estate often ma&e this mista&e when conductin# personal property appraisals since they are use to #ivin# only limited descriptions of #eneral

26
household #oods, rather than the detail required for antiques and fine art. Instead of statin# that a piece was, !Lbuilt in the heraton style with maho#any cabriole le#s and ball @ claw feet, measurin# a len#th of ten feet with all three leaves inserted, and havin# a patina of rose and brown, with distinct mar&s of a#e penetratin# throu#h the various layers of lacquerL% 2ou mi#ht find instead, such lines asB !#ood maho#any table.% This type of assessment will often draw the ire of the I? 8?+ because it indicates a lac& of proper &nowled#e on behalf of the appraiser, or at the very least a deficiency in documentation * both of which are frowned upon.

At the same time it is wise to &eep your appraisals to within the pertinent confines of your sub(ect matter. Appraisals that !overstate% the features of an item are usually done so in an effort to ma4imi3e it0s value * a#ain, this is not somethin# the I? 8?+ li&es to see. The simple rule of thumb to consider for each individual item isB a.) what is itJ b.) when it was madeJ c.) the dimensionsJ d.) who created it (if applicable)J e.) the overall condition of the item(s) f.) and of course value. $y stayin# within the socalled !parameters of e4pectation% in an appraisal, you are less li&ely to draw the attention of the I? 8?+ for further scrutiny.

G. Appraised Property And Its ?elation To The +urrent ;ar&et. This #uideline is relevant for an appraiser when carryin# out an appraisal that has to do with #iftin# or donations. It can become problematic when conductin# appraisals such as those used for estate valuations, unless the property bein# considered is of the same &ind, or similar in nature. Fffort should be ta&en here to ensure that the appraisal covers the most applicable mar&etplace for the sale of such item(s).

27 6. Photo#raphs of the Property. The use of photo#raphs are beneficial to almost every
appraisal. The old e4pression, !A picture is worth a thousand words,% could not be more true in this respect. It is not uncommon for the I? 8?+ to require photos in order to bac& up verbal assertions made by an appraiser.

8o0 $o 8andle An IRS@RC Appraisal $ased on the previously listed criteria, it is patently obvious that when conductin# an appraisal that may potentially be reviewed by the I? 8?+, careful consideration must be #iven to how the appraisal is handled. The I? 8?+ mandates that an appraisal be conducted by a capable individual who can provide e4amples of their credentials, as well as any pertinent wor& history in the form of a synopsis, when submittin# any &ind of valuation documents to their offices. It should also be noted that when conductin# an appraisal that may end up as part of a client0s ta4 return, the appraiser is responsible for providin# a si#ned copy of that appraisal, to the client, for (ust such a purpose.

$y applyin# the information that has been laid out here, and in the precedin# pa#es, an appraisal which is headed to the I? or ?+, will have a far better chance of passin# throu#h the bureaucracy of the system with less chance for scrutiny and further review, if appraisers follow the #uidelines described within this section. 5owever, even the best of appraisals, those with full documentation, photos, and relevant comparables can still come up short if the I? 8?+ deems that the information obtained was incorrect or tainted by other factors that were not considered at the time of the analysis. In the end, appraisin# is based on sub(ective valuations, and outri#ht opinion. If the I? 8?+ feels that the e4amination and research that went into developin# these opinions, is not substantial enou#h, or of sound (ud#ment, they can dispute the findin#s.

28
(Asheford students should be fully aware of all of these elements before proceedin# with an appraisal that may be impacted by an I? 8?+ review.)

Being Re/ie0ed By $he IRS In the early years of appraisin# antiques and art, the I? was often at the mercy of the crusty old antique dealer who doled out !relative% values (and wisdom) ri#ht-off the top of his head. ?eali3in# that they were in the somewhat compromised position of !not &nowin#% any better, the I? created an 'art and antiques advisory panel' in the late nineteen-si4ties (no such panel currently e4ists for ?evenue +anada), to ma&e sure that le#itimate values were bein# placed on appraisals of antiques and art. Today, the panel continues to #ive #uidance on such matters, but only on items whose value is estimated to be above ND/,///. Althou#h it is unli&ely that you will be appraisin# a #reat number of items valued at, or over this fi#ure, it is important to be aware of the ramifications this would entail should such an appraisal be required. In addition to the advisory panel, the I? also has a special division of employees (the Haluation "ivision) whose sole purpose is to determine the accuracy of personal property valuations they receive from appraisals. >or&in# in concert with these individuals are a number of private sector appraisers who aid the I? employees in their assessment valuations of antiques and art.

After a full review of your appraisal, either of the two evaluatin# bodies from the I? would pass (ud#ment on the validity of your claims. Amendments to the valuations you have presented within your appraisal would be listed, as well as the #rounds and rationale behind any revisions.

5owever, as an appraiser, you do have some recourse should your evaluations be challen#ed. $y law, the I? must provide you with a statement in writin# that clearly elucidates the reason(s) for any chan#es within your appraisal. If, after review of these facts you still feel

29
that the information provided in your appraisal was valid and accurate, and that the I? erred in their appraisal reassessment, you can ta&e the matter to the Appeals "ivision and as& that it be reviewed. If nothin# comes of this process, then the case could possibly end up in 9ederal Ta4 +ourt, althou#h this would be an unli&ely scenario due to the prohibitive costs associated with such an action. ;ost of these types of disputes are settled well before a court date is ever set. Fven thou#h it is unli&ely that you will ever find yourself in a dispute of this nature, it is still a #ood idea for the avera#e appraiser to have some understandin# of the processes that could lead to this type of outcome.

Additional Points $o Consider As with any business or service there are always issues that can often #o unnoticed until somethin# happens that brin#s them directly into focus. In re#ard to appraisin# there are a couple of &ey concerns that can often be missed because of their somewhat hidden nature.

The first issue is what is often referred to as a #lut-mar&et (also &nown as a !bloc&a#e%). This is the concept of floodin# the mar&et with a number of similar items (such as those found in private collections of a similar type), to such an e4tent, that the concurrent release of these items into the mar&etplace, would in turn, have a substantial deleterious effect on their valuation * ostensibly, you would be devaluin# your clients property by releasin# it onto the mar&et all at once. In order to avoid this ne#ative impact for your client, you will probably need to wor& with the I? 8?+ in order to come up with a more balanced value that can be derived from a number of related sources * includin# valuations from sin#le comparables, valuations at time of appraisal, etc. In situations such as this, compromise is li&ely to be the middle-#round when it comes to ne#otiatin#.

30
The second issue that often crops up for appraisers is the !buyer1s premium.% $oth the I? and ?evenue +anada consider the buyer0s premium part of the sale price. In other words, if an estate uses an auction to sell a +hippendale style chair, it must include the reali3ed sale price at auction, plus the buyer1s premium when indicatin# the valuation for the chair in the current mar&etplace. ome claim this ma&es little sense, since the estate sees no #ain from the buyer0s premium, but instead sees the ta4-burden from this premium, transferred to them on the bac&end. 5owever, many believe this is a classic case of si4-of-one, or half-do3en of the other, since it is commonly understood that most individuals can li&ely write-off the buyer0s premium as an e4pense related to administrative fees. As an appraiser, your obli#ation would be to chec& with an accountant re#ardin# this matter first, before finali3in# any appraisal.

IRS and RC - Concl*sion If you plan on appraisin# for either the I? or ?evenue +anada, these #uidelines should help point you in the ri#ht direction, however, they are by no means conclusive in terms of directives, codes, and amendments. The staff here at the school stron#ly ur#es you to see& le#al help from someone versed in the intricacies of these various or#ani3ations, as well as that of a +PA who is also well #rounded in this type of wor&. These are difficult appraisals, that require a tremendous amount of accurate detail and corroborative evidence, and should not be attempted until you have sufficient e4perience and &nowled#e to conducted such an underta&in#.

31

APPRAISING %$8E #N"AMEN$A!S&

$y now, you will have almost completed all 9ive Plans of the Asheford +ourse and should have a #ood fundamental &nowled#e of the world of antiques and collectibles. >hen you have finished this Plan, and upon receipt of your #raded essay, appraisal certificate, and

"iploma (minimum passin# requirement =GO), you should be qualified to establish yourself as a competent appraiser. o, what does this meanM It doesn0t mean that you can run out and 'appraise' every item you encounter from memory or si#ht, or even from the +ourse te4ts alone, but only that you should now have a framewor& of '&nowled#e' from which to proceed from in order to place items into a historical conte4t. 2ou should also have a #rasp of styles and periods, be able to notice when somethin# loo&s li&e it mi#ht be a fa&e or reproduction, and start to have an overall sense of value and where thin#s belon# in the mar&et. Af course, you0ll also need plenty of secondary references from such sources as the Internet, published articles, auction results and price #uides (to name a few). These sources, and many more, will all be necessary tools required, in order to help you accurately and correctly identify and appraise individual items.

In the end, e4perience will play a bi# part in how adept you become at appraisin# * the more you #et out and into the field and see the antiques and collectibles for yourself * the better prepared you0ll be. The information provided in the followin# pa#es will help you to that end, by establishin# a template for layin# out this data in a lo#ical and professional manner.

32

Si,ple =In-8o*se> Appraisal Report

To #et you started, we have included an uncomplicated form that can be used for most basic appraisals for individuals. After you have mastered you1re first few simple appraisals (perhaps for friends and family), you will also find an e4ample of a full-fled#ed !professionallevel% appraisal that can be used for individuals or insurance companies requirin# e4tensive documentation. 5owever, before proceedin# to that level, it is recommended that you start with this simple in-house appraisal report.

The followin# is an e4ample of an !in-house% appraisal report that one mi#ht conduct for family, at a charity event, appraisal fair, or even a place of business (antique booth), where appraisals are bein# conducted on an unsolicited, wal&-in bases, or within a restricted time limit, and are primarily based almost solely on opinion. These reports use a simple structure for layin# out an appraisal form that can be modified to suit you own specific needs (simply insert the name of your business where necessary, and any other information you mi#ht feel is pertinent).

>e would also recommend that you include a 1cover-sheet1 alon# with your appraisal form, which will e4plain to your client the 'type' of evaluation you are conductin#, i.e. for !personal use only.% This would be cate#ori3ed under, the !purpose% of the evaluation. Also, be sure to as& the client beforehand what they intend to do with the appraisal * if they plan on usin# it for insurance purposes, you should let them &now that you will have to indicate on the report that an in-house appraisal cannot be used in this manner. $y as&in# a few questions in advance, you can often head-off potential problems that mi#ht come bac& to haunt you in the future. ome appraisers also include a disclaimer on their in-house reports, in which they divest themselves of any financial interest in the item as a result of the appraisal they are conductin# -

33
remember, if you thin& you mi#ht possibly be interested in the items you1re appraisin#, you0ll need to let your client &now this information before you conduct the appraisal, otherwise this would be considered a conflict of interest. 2ou may also want to include a disclaimer on your report indicatin# that this appraisal is an !in-house% simple report that has not been bac&ed-up or corroborated by any secondary, third-party or investi#ative analysis.

Important <oteB
?emember, this type of report cannot be used as a Professional-Ievel Appraisal (this type of appraisal will be dealt with later.) In-house appraisals should only be used for personal or entertainment purposes.

34 SAMP!E O A SIMP!E =IN-8O#SE> APPRAISA! REPOR$)

South Meadow Farm Antiques Business Logo

Address. Tel. ate. Appraisal Form: Total !ours"#ost $er %tem: &etail $rice: Wholesale $rice: 'ther: %T(MS: %tem )----------------------------------------------------------%tem *----------------------------------------------------------%tem +-----------------------------------------------------------Additional #omments-------------------------------------------------------------Su, TotalBPPPPPPPPPP TotalBPPPPPPPPPP Signature o- Appraiser 8 ate
PPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP

#'STB
----------------------------

Mem,er o-: ................. A++iliated 0ith)GGGGGGGGGGGGGGGGGG isclaimer o- &esearch Sources: ................................................. GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGG
QQQQQQQ "isclaimer of proprietary interest (optional)QQQQQQQQ

I, %ohn &oe, do hereby di'est myself of any proprietary interest( either fiscal or personal, in any of the appraised items listed abo'e, and further, recogni)e that this appraisal is being conducted solely for personal or entertainment purposes"

35

#ignature:*********************************************** &ate:******************

APPRAISA! BASICS

36
,.) Ane of the first decisions you ma&e, should be to ensure that the word 'APP?AI F?' appears on all of your letterhead, business cards, brochures, as well as any or#ani3ations you mi#ht be a member ofJ local antique dealer associations, historical society, etc. $e sure to have any appraisal form (whether in-house or professional) printed up with the name of your business listed at the top.

D.) The previous e4ample of the simple !in-house% Appraisal ?eport should never be written in pencil, but always in pen, typed or printed. $ecause you are conductin# merely a personal or entertainment value appraisal, there can be a temptation to treat it as somethin# less than a bona fida appraisal * this is certainly not the case * even thou#h you may not be required to provide the same de#ree of research and analysis as for a professional level appraisal, you should always ma&e your appraisals professional in appearance re#ardless of their intended use.

C.) 2ou must always bac&-up your finished appraisal values with your si#nature. hould your claim of values ever be disputed, you may have to actually defend your stated values in a court of law (unless stated otherwise on your appraisal report). Always &eep this in mind before proceedin# with any appraisal if you thin& you1re unpreparedR

E.) ;a&e sure you advertise in the 2ellow Pa#es under 'Appraisers', as well as in the section on antiques under 'Antique Appraisers' - if your local 2ellow Pa#es does not display either of these headin#s, as& them to create one for you - some will, and some won1t, but it never hurts to as&R

G.) Fstablish a current set of antique price #uides and reference boo&s, i.e. >armens, ;illers, chroeders etc. This is #oin# to be the bac&bone of your information library. 2ou1ll need to

37
ta&e these with you whenever you0re conductin# a professional-level appraisal (there are some poc&et versions of these boo&s - chec& out the lar#er boo&stores or Internet for the best selection).

=.) ;any counties and municipalities supply licensin# credentials and bondin# for appraisers and auctioneers. +hec& your local #overnment requirements for these licensees. The avera#e annual fee ran#es from ND/.// to N././/.

:.) +ontact local insurance companies, lawyers, and real estate a#ents, and leave them with a brochure e4plainin# your e4pertise, bac&#round, address, and qualifications (i.e. !+ertified% Appraiser status from the Asheford Institute of Antiques).

..) Advertise in all local publications with a classified ad, (you may want to use a small display ad, or both, if the cost does not seem prohibitive). $e creative with your ad and try to draw in potential clients, with a detailed listin# of your credentials (i.e. ;ember of the Asheford Institute of Antiques, A.I.A., and certified appraiser.) Any other !teasers% that you can use to help draw people into contactin# you, such as a free over-the phone consultation, are invaluable as far as developin# mar&et awareness of your services.

C!ASSI IE" EHAMP!EB

*Use of the $ord %&'' is al$ays attracti(e to clients. A )rief con(ersation costs you nothin#* )ut #i(es you the chance to sell your ser(ices.

APPRAISERS D & G APPRAISAL SERVICE. Specializing in antique and collectible appraisals. e!ber and "Certi#ied$ Appraiser o# t%e As%e#ord Institute o# Antiques &AIA'. (or !ore in#or!ation) call* &+++' +++,++++ #or a (REE o-er,t%e,p%one consultation) or -isit our .eb site at* ....antiqueappraisers.co!. E!ail. antiqueappraisers/-ol.co!

*Use your Asheford credentials to ro!ote your e" ertise in the field of a raisin#.

38
-.) >atch for any ban&ruptcy announcements in your local paper which relate to antiques and collectibles, and contact the ?eceivers, lawyers, and insurance companies, offerin# your services. ,/.) As you acquire customers, prepare a list of testimonials from people and companies for whom you0ve done appraisals.

Testimonials from insurance companies and le#al firms, are especially #ood, since you can use them in your advertisin#, this will add a #ood deal of le#itimacy to your business - in addition to helpin# to increase your potential sales.

,,.) Publici3e the fact that you offer an appraisal service to your customers and clients by leavin# them with a few brochures. They in turn mi#ht have a friend who needs an appraisal - word of mouth is one of the best forms of advertisin#.

,D.) If you are operatin# an antique business in addition to doin# appraisals, you mi#ht want to consider runnin# infrequent speciali3ed ads offerin# to, 'Appraise old or antique family heirlooms, furniture, (ewelry, china etc., at +#pecial ,nce A -ear &iscount Prices.% This can often turn out to be an e4cellent way to purchase new inventory at a reasonable price (a#ain, this requires full disclosure on your part of your !possible intent to buy%).

,C.) Seep abreast of the latest brea&in# trends and auction prices (particularly in speciali3ed fields such as antique toys, baseball cards, movie posters etc.), by searchin# the Internet and readin# throu#h a variety of national and international antique ma#a3ines and papers that list these results. ome Internet sites actually catalo# recent antique and collectible auction prices, and for a small fee, you can often obtain a monthly or yearly membership that allows you to access this up to date information immediately

39
F4amples Af Trade ;a#a3ines @ Papers Iistin# Antique @ +ollectible PricesB

The Antique Trader Antique >ee& Art @ Antiques +ollectors <ews The ;a#a3ine Antiques ;aine Antique "i#est The )pper +anadian8Antario howcase (+anada). The Antiques 6a3ette (Fn#land)

,E.) Seep in mind that when you are conductin# an appraisal (especially for Insurance companies), that there is no such thin# as 'sentimental' value. ;any people feel that because they1ve had a particular heirloom passed down throu#h two or three #enerations it somehow #ains some e4tra value because of the association it1s had with previous family members. This is certainly not true, and insurance companies who find such discrepancies in your appraisals, will li&ely refute your assessments, and will be unli&ely to hire you a#ain.

o, in order to avoid any confusion, and possible loss of future business, state the item(s) value truthfully and to the best of your ability.

,G.) P?I+I<6B +har#es for your appraisal service should be based on an hourly rate. 6eneral household antiques and collectibles can be billed at an hourly rate of NCG.// to N-G.// an hour when you are required to actually be at the residence or business (some appraisers char#e from the moment they leave their home * others factor this into their hourly rate. 5owever, if you0re

40
#oin# to travel a lon# distance to #et to the appraisal, then a travel reimbursement fee may be appropriate). The difference in hourly rates char#ed by appraisers is based on a number of factors, includin#J e4pertise in a particular field, len#th of time in business, reputation, as well as where you live * urban appraisers rates are often hi#her due to the increased cost of livin# in a city).

Also, if a considerable amount of research is #oin# to be required, then you mi#ht want to consider either a flat fee (somewhat less than the hourly rate if the research is #oin# to be conducted at your home), or a reduced hourly rate. If you decide to offer your services at an appraisal fair, or charity event, then you mi#ht want to reduce your rates somewhat, so that they are in &eepin# with the theme of the event. Appraisal fairs often ta&e !wal&-ins% based on fifteenminute appraisals, at an avera#e rate of about seven to fifteen dollars per appraisal. Ioo& also to see what other appraisers are char#in# for similar services.

A1& $he ?holesale Price - what a dealer, or auction house mi#ht be e4pected to pay for the itemB - this price is usually G/O of the retail price. 5owever, in some instances it may be necessary to investi#ate what the !particular% wholesale price is, based on re#ional or local conditions. B1& $he Retail Price - what an individual would pay for the item if you were to advertise it for sale. This would include sellin# to the public at lar#e throu#h traditional outlets such as newspaper ads, for sale si#ns, etc. C1& Replace,ent Dal*e - This is the price an individual mi#ht have to pay to replace a similar antique item destroyed in a fire, or one that was stolen, or dama#ed beyond repair. )sed most often by insurance companies.

41

SLIDI0G SCALE E1A

Ite! ,

PLE*

a%ogan2 Victorian C%est 3# Dra.ers &Circa 4+56' 1. +holesale ,rice 2. &etail ,rice 3. &e lace!ent ,rice .700.00 .1400.00

.1700.00

/used for 0nsurance (aluations1

INote) the prices listed a.o/e are only g*idelines- and ,ay /ery greatly depending on location and condition1

-------------------------------------------------------------------------------------------------------------------------------------

!i,itations Ane of the &ey aspects of the appraisal business (or any other business for that matter) is to reco#ni3e your limitations - if you don1t &now the value of somethin#, don1t pretend and #uess. If you1re unable after e4haustive research to determine the value of a particular piece, then try to find another appraiser in the phone boo&, or one that you mi#ht &now of, who would be willin# to assist you with additional information. Ioo& for #alleries, or antique establishments that may speciali3e in the item that you1re appraisin#. As stated

42
before, people are very often ea#er to show their e4pertise in a sub(ect - if they can help you, and you trust their abilities - let them. Ance a#ain, this is also a #ood way to develop ties with other appraisers and e4perts in your area * a shared &nowled#e base amon# other professionals can be an invaluable tool to the success of your business.

If you incorporate all of these !Appraisal $asics% into your business model when you first start out, and continue to do so on a re#ular basis, you should have the fundamentals necessary for startin# your own appraisal service. <ATFB Please remember, these are only #eneral #uidelines to wor& from - each appraisal service will have it1s own specific needs - learn from e4perience, and always be ready and willin# to adapt to chan#in# circumstances.

43

PRO ESSIONA!-!EDE! APPRAISA!

2ou have already reviewed and wor&ed with a simple !in-house% appraisal, and have added to your &nowled#e base considerably, however, in the upcomin# pa#es you are #oin# to be reviewin# a !moc&% professional-level appraisalL which is really what appraisin# is all about. >hen you han# a shin#le and state, !I0m a certified appraiserL% on your business cards and stationary, this is the type of appraisal people will e4pect to see. >hen you want to conduct an appraisal for an insurance company, or have been as&ed to appraise an estate sale with possible ta4 implications, this will be the type of appraisal people will e4pect to see. The amount of information and detail contained within a professional-level appraisal is far #reater in scope and nature than that of an in-house appraisal.

$y &eepin# this in mind, and addin# it to what you have already learned so far in the +ourse, coupled with the e4ample of the moc& appraisal comin# up, you should now have enou#h accumulated information to be able to put to#ether a professional-level appraisal of your own (this may sound somewhat dauntin# at first, but if you consider everythin# you have done to #et to this point, you0ll reali3e that you probably already have enou#h &nowled#e necessary to be#in wor&in# on a professional-level appraisal). The information you0ve #ained from the Asheford PA++ rules as well as that from the I? and ?evenue +anada section of this Plan should also assist you in creatin# your own appraisal. Ioo& for applications within the pa#es of this moc& appraisal that demonstrate the use of these principles and PA++ rules. $y understandin# how they0re applied in the moc& appraisal, you0ll be able to apply them to your own appraisal.

44

An the followin# pa#es you will find an e4ample of a !moc& professional appraisal that can be used for individuals, le#al offices or insurance companies see&in# 'replacement' value. This e4ample is a template only - not an actual appraisal of an authentic item. 5owever, by usin# this moc& e4ample as a template you should be able to construct your own professional-level appraisal by simply replacin# the 'item' information from the moc& version with your own * this means conductin# your own research and analysis, and developin# your own definitions. ?ead the moc& version carefully so that you will &now what to e4pect when you be#in to prepare your own appraisal.

Moc4 JReplace,entJ Appraisal

2elo$* is an e"a! le of a !oc3 rofessional-le(el a raisal* as each a#e $ould )e rinted out. 4he e"a! le used here is one )ased on a re lace!ent (alue for a aintin#* ho$e(er* it could 5ust as easily ha(e )een for a 'n#lish chest of dra$ers. 4he for!at and lay-out rocedure for each rofessionalle(el a raisal is the sa!e* re#ardless of the su)5ect !atter.

45

7o%n Doe 489: Sa!son Dri-e St. Louis) 3 ;:<5+ 5+9 , :64, <5==

An A raisal %or 4he ,ur ose 6f 0nsurance

46

4A27' 6% 8694'94:

0. 00. 000. 0;. ;.

7etter of 4rans!ittal A raised +or3 $ith ,hoto#ra hs 9arrati(e Analysis 8o! ara)les 8ertificate of A raisal

;0. 8ertification of A raisal ;00. <isclai!er= Assu! tions and 7i!itin# 8onditions ;<3. ;000. <efinitions > A))re(iations 0?. 8urriculu! ;itae

Kohn "oe (327 Sa,son "ri/e St1 !o*is- Ml ;7L<M LM2-7N(-<LOO stlo*isappraiserP/ol1co, 0001stlo*issappraisser1co,

47

@une 5th* 2AAAAA

Br. 2ill :!ith 2367 9or!andy 2l(d :t. 7ouis 54689 <ear Br. :!ith* &e#ardin# our re(ious a#ree!ent* lease acce t the enclosed re ort. 0t details an in(esti#ation and deter!ination )y this A raiser of all the (arious factors that could affect the (alue of the 'n#lish aintin#* "2elle 6 2rien" as a constituent art of your collection. 0t is understood that the a raisal is to )e used for insurance ur oses* na!ely to deter!ine the &e lace!ent ;alue. As of today it is !y o inion that the &e lace!ent ;alue of the +illia! Co$ard Dor3e art$or3 descri)ed and detailed in the a raisal a#es of this re ort is as sho$n )elo$. * A nineteenth century shi Dor3e in oil on can(as. in# aintin# - "2elle 6 2rien" /18761 )y +illia! Co$ard

* %our 4housand %i(e Cundred <ollars* .4* 500.00 Replace!ent Value is de#ined as> 4he hi#hest rice in ter!s of cash or other recisely re(ealed ter!s that $ould )e reEuired to re lace a ro erty $ith another of si!ilar a#e* Euality* ori#in* a earance* ro(enance and condition* $ithin a reasona)le len#th of ti!e in an a ro riate and rele(ant !ar3et. ?%is de#inition includes -arious anticipated costs suc% as> ,urchase at a $ell- u)liciFed auction $here co! ara)le ro erty is re#ularly soldG urchase fro! an a ro riate #allery or dealer. %or this a raisal* the &e lace!ent ;alue $as deter!ined )y usin# the #uidelines of the 8o! arati(e Bar3et <ata A roach* neither the 9et 0nco!e A roach nor the 8ost A roach )ein# a ro riate* and co! le!ented $ith corro)orati(e e" ert o inion.

48

4he A raiser states that he is the holder of the Asheford 0nstitute of AntiEues certificate in AntiEues and A raisal :tudies* and is a rofessional A raiser $ith ractical e" erience in %ine and <ecorati(e Arts. 4he A raiser further states that he is 3no$led#ea)le of all the ertinent infor!ation re#ardin# the Unifor! :tandards of ,rofessional A raisal ,ractices /U:,A,1* as it relates to this a raisal. 4he A raiser has no ast* resent or future interest in the ro erty a raisedG and neither the e! loy!ent to !a3e the a raisal* nor the co! ensation for it* is contin#ent u on the a raised (alue of the ro erty. Ca(in# e"ercised due dili#ence in the ins ection* hoto#ra hy and research of the listed ite!* in discussions $ith dealers and e" erts* ha(in# follo$ed a ,rofessional 8ode of conduct throu#hout this rocess* and ha(in# e! loyed the necessary Unifor! :tandard of A raisal ,ractices in doin# the a raisal* !y lia)ility is li!ited to the su! of !y fee. 4his a raisal is AA a#es lon#G each $ritten a#e and hoto#ra h is nu!)ered seEuentially fro! ,a#e 6ne of the 7etter of 4rans!ittal. 'ach a#e is initialed )y this A raiser in the lo$er ri#ht hand co!er. 'ach a#e $ith a $ritten &e lace!ent ;alue fi#ure is also initialed )y this A raiser o(er that (alue. 4he a raisal !ust )e resented in its entirety to )e (alidG re!o(al or alteration of any of the a#es $ill render the a raisal in(alid. 0 loo3 for$ard to hearin# fro! you. ,lease do not hesitate to call !e at 782-4016799 should you ha(e any Euestions a)out this a raisal. &e#ards*

John Doe
@ohn <oe 8ertified ,rofessional A raiser /Be!)er* Asheford 0nstitute of AntiEues1

49

ll1a APPRAISE" ?ORQ

,re(ious A raisal= Artist= 9ationality= 4ite of Art$or3= +hat= :itterH:u)5ect= Bediu!= <escri tion=

8ondition= ,ro(enance= deter!ined )y=

6ri#inal 8ostH%ee= %acts

Dear = <i!ensions =

:i#nedHUnsi#ned= <escri tion of si#nature= 7ocation of si#nature= 6ther !ar3in#s= %ra!ed=

50

Ior!an Ialleries* 1986 ;alued J .2*100.00 for &e lace!ent ;alue. +illia! Co$ard Dor3e 1847-1921 'n#lish 2elle 6 2nen ,aintin# ,ortrait of A!erican shi 2elle 6 2rien 6il on can(as An oil on can(as ortrayin# the A!erican shi 2elle 6 2rien fully- ri##ed at sea. 4he "2elle 6 2rien" $as )uilt in

4ho!aston* Baine in 1875. 0t $as lost off 0reland in 9o(e!)er 1895.

1876
0!a#e in inches= 28"42 %ra!ed in inches= 32"46

0!a#e in 8B:= 71"107 %ra!ed in inches= 80"115

+.C. Dor3e +ritten in cursi(e style 2otto! left hand corner 0nscri)ed "7 ool" and dated +ooden fra!e in #ilt $ith acanthus decorations '"cellent AcEuired directly fro! the ainter 9ot 3no$n 0n(esti#ation > research )y A raiser

ll1. APPRAISE" ?ORQ CON"I$ION

4his A raiser e"a!ined the 2elle 6 2rien aintin# $ith the na3ed eye and $ith the added aid of a lou e. 4here $as one s!all chi in the aint. 4he fla$ $as located near the to ri#ht hand cornerG this fla$ $as (ery s!all in nature and reEuired the use of a lou e to see /7oo3s to ha(e occurred !any years a#o due to discoloration on the e" osed area $here the chi ca!e off1. 4he fra!e had no a)rasion or scuff!ar3s either on the front or on the outside ed#es.

51

4he aintin# had no si#ns of $ater!ar3s or si#ns of fadin#. 4here $as no si#n of !ould or insect da!a#e. 3-erall condition* E@cellent

ll1c APPRAISA! P8O$OGRAP8

52

! $ el le A $rien%

III1

NARRA$IDE ANA!BSIS

4his narrati(e analysis $ill=

53

KIi(e a )io#ra hy of the artist KIi(e a )rief descri tion of the "co! ara)le" rocess KIi(e a su!!ary of the (alues deter!ined

0t is Euite co!!on that !ost a raisals for &e lace!ent ;alue includeG if ossi)le* a )rief )io#ra hy of the artist. 4his ser(es to ut the creator of the $or3 and the art$or3 itself into a conte"t of ti!e* style and lace.

A Searc% 3# ?%e Internet Re-ealed ?%e (ollo.ing In#or!ation>

AorBe) Cillia! Do.ard /2ritish* 0847-09201 SubEects* 6il aintin#s on can(as. Place* +or3ed and li(ed in 7i(er ool* Ireat 2ritain. oti#s* :hi ,ortraits* often $ith local )ac3#round. 0otes= <urin# his acti(e ti!e )et$een 1858 until 1913 he ainted $ell-e"ecuted shi ortraits sho$in# an accurate (ie$ of the shi $ith all nautical details. A trait of his later aintin#s are hull reflections at )o$ and stern in the sea.

ID1

COMPARAB!ES

Description and deter!ination o# t%e FCo!parable Fprocess

54

4he co! ara)le rocess is the rocedure )y $hich the A raiser finds infor!ation rele(ant to the art$or3 )ein# a raised. &ele(ance !eans an art$or3 si!ilar in style* siFe* su)5ect !atter* artistic !erit* date ainted and na!e reco#nition of the artist. 4his ena)les the A raiser to !a3e a co! arison and thus find a "co! ara)le*" for esta)lishin# &e lace!ent ;alue

Replace!ent Value is de#ined as*

4he hi#hest rice in ter!s of cash or other recisely re(ealed ter!s that $ould )e reEuired to re lace a ro erty $ith another of si!ilar a#e* Euality* ori#in* a earance* ro(enance and condition* $ithin a reasona)le len#th of ti!e in an a ro riate and rele(ant !ar3et. An A raiser is )ound )y the a)o(e definition. Ce has se(eral choices $hen he see3s to (alue a $or3 of art.

Auctions & Dealers

8o! ara)les are li!ited )y (irtue of the fact that the sales that allo$ the co! arison to )e !ade and a co! ara)le assessed !ust )e a(aila)le in the u)lic record. 4hese sales !ost usually are auction rices. 0n this a raisal the rele(ant rices to )e found in an auction !ar3et include=

A!oor 1871 L ,ortrait of the 2ritish :hi at sea other (essels and a coastline )eyond L 61 " 91 c! L si#ned and dated. :old at auction on 2AAAAA. Auction ,rice= .3*950.00. GolBe 1886 L ,ortrait of the Ier!an 2arEue at sea L 51 " 76 c! L si#ned "+.C. Dor3e" and dated L :old to ,ri(ate 8ollection in U:A on 2AAAAAA. ,rice= .4*550.00.

55

Special Note To Asheford Students

0f no u)lic records are a(aila)le all data rele(ant to &e lace!ent ;alue co!es fro! discussions $ith dealers and e" erts in the articular field that youMre ite! is related to. All co! ara)les are li!ited )y (irtue of the fact that the sales that allo$ed a co! arison or co! ara)le to )e !ade !ust ha(e occurred $ithin a reasona)le ti!e for an a raisal to )e (alid. 4his eriod is usually fro! a year rior to a year ost the loss. 4his allo$s for a ran#e of sales $ith their corres ondin# ran#e of rices in the #i(en eriod. 0f ri(ate sales cannot )e used for co! ara)les then this nor!al ti!e eriod for a lica)le co! ara)les cannot )e used either. 0f* for e"a! le* the a raisal for Br. :!ithMs aintin# could not )e co! ared to other aintin#s and rices* this a raisal $ould* out of necessity* )e )ased on the &e lace!ent ;alue rice as3ed )y a dealer at the ti!e of re lace!ent. 0n addition to this it $ould also )e necessary to ro(ide the o inions of other e" erts to )ac3 u your "co! ara)les" clai! of (alue. 4he follo$in# e"a! les $ill illustrate this oint.

&ele(ant 6 inions /use only $hen "actual" rice co! ara)les are not a(aila)le1 4his A raiser sou#ht out o inions fro! the follo$in# e" erts=

r. Gill Garton* 6ne e" ert that this A raiser contacted* $as a Br. 2arton* resident of 9e$ Dor3 8ity and seller of !arine art on the 0nternet. Ce noted that there $as a si!ilar ainter* @ohnson 7ase* $ho li(ed at the a ro"i!ate ti!e as Br. Dor3eG in this case fro! 1850 -1910. Cis aintin#s $ere (ery si!ilar and ha(e recently sold in the .4*000.00 to .6*000.00 ran#e. Br. 2artonMs o inion $as that a +illia! Co$ard Dor3e re lace!ent $ould cost a)out .5*200.00. s. Dor2 Gre2* Bs. Irey o$ns* "9autical Bile" in Bo)ile* Ala)a!a* and s ecialiFes in 'n#lish

56

!arine art. Cer o inion $as that a +illia! Co$ard Dor3e re lace!ent $ould cost a)out .4*450.00 and u . Br. <onald 7i !an= Cistorical s ecialist at the Bariti!e Buseu! of Art in Califa" 8anada $as of the o inion that the %air Bar3et ;alue /%B;1 of the +illia! Co$ard Dor3e aintin# $as .2*100.00 %B;. Ce offered no o inion as to &e lace!ent ;alue. Co$e(er if $e e"tra olate fro! the %B; nu!)er and allo$ &e lace!ent to )e t$ice %B; lus 10N $e arri(e at a fi#ure of .3*920.00.

Br. <a(id Co#arth= Br. Co#arth is a 8ertified !e!)er of the 0nternational :ociety of A raisers /0:A1 and a s ecialist in !arine art in :t. 7ouis. Cis o inion $as that the &e lace!ent (alue $ould )e .4*500.00.

<eter!ination 4he !a5or cities of the 'ast > +est coasts are #enerally ac3no$led#ed to )e !ore e" ensi(e than !ost other cities in the U:. Califa"* 8anada* $hilst the do!inant city of the Bariti!e ,ro(inces has a chea er cost of li(in# than 9e$ Dor3 or 7os An#eles. Ca(in# discarded the lo$er cost cities as )ein# irrele(ant to calculatin# a loss for Br. :!ith in :t. 7ouis* it is the o inion of this A raiser that a re lace!ent cost $ould )e at the hi#h end of the ran#e of rices #i(en )y the (arious e" erts.

0t is the o inion of this A raiser that the &e lace!ent ;alue of the +illia! Co$ard Dor3e aintin#* 2elle 6 2nen is= H:.;66.66

57

D1

CER$I ICA$E O APPRAISA!

4he undersi#ned* @ohn <oe* here)y certifies that at the reEuest of Br. :!ith he has carried out an a raisal for insurance ur oses* na!ely that of &e lace!ent ;alue* of the $or3 of art listed )elo$G that he is a ,rofessional A raiser $ith e" erience in %ine and <ecorati(e Art* and that* to his )est 3no$led#e and o inion* and fro! infor!ation o)tained* the &e lace!ent ;alue is as #i(en.

A +illia! Co$ard Dor3e /'n#lish 1847-19211 aintin#. 6il on can(as* tided* "2elle 6 2rien." %our-4housand-%i(e-Cundred <ollars* .4*500.00

4his section of the re ort co! leted and $ritten @une 5th* 2AAAAA 4he <isclai!er* 7i!itin# 8onditions* and <efinitions on the follo$in# a#es are an inte#ral art of the docu!ent.

John Doe
@ohn <oe A0A - 8A ,rofessional-le(el 8ertified A raiser /Be!)er* Asheford 0nstitute of AntiEues1 <ated at :t. 7ouis* B6 this 5th of @une 2AAAAA

58

Dl

CER$I ICA$ION O APPRAISA!

4he A

raiser certifies and a#rees that=

1. 4he A raiser has no ast* resent or conte! lated interest in the ro erty a raisedG and neither the e! loy!ent to !a3e the a raisal* nor the co! ensation for it* is contin#ent u on the a raised (alue of the ro erty. 2. 4he A raiser has no ersonal interest in or )ias $ith res ect to the su)5ect !atter of the A raisal &e ort. 3. 4o the )est of the A raisers 3no$led#e and )elief* all state!ents and infor!ation in this A raisal &e ort are true and correct* and the A raiser has not 3no$in#ly $ithheld any si#nificant infor!ation. 4. All contin#ent and li!itin# conditions are contained in this A raisal &e ort.

5. 4he A raisal &e ort has )een !ade in confor!ity $ith a code of rofessional ethics adhered to )y said a raiser. 6. All conclusions and o inions set forth in the A raisal &e ort $ere re ared )y this A raiser. 9o chan#e of any ite! in the A raisal &e ort shall )e !ade )y anyone other than this A raiser* and this A raiser shall ha(e no res onsi)ility for any such unauthoriFed chan#e. &e!o(al or alteration of any of the a#es includin# the si#ned a#es shall render the a raisal in(alid. 7. Unless other$ise stated* the (alue #i(en in the A raisal &e ort re resents the o inion of (alue as of @une 5th* 2AAAAAA

John Doe: @ohn <oe A0A-8A ,rofessional-le(el 8ertified A raiser /Be!)er* Asheford 0nstitute of AntiEues1

59

<ated at :t. 7ouis* B6 this 5th of @une 2AAAAAA

Dll "ISC!AIMER) ASS#MP$IONS AN" !IMI$ING CON"I$IONS

4his certificate of a raisal is #i(en su)5ect to the ter!s and conditions hereinafter set forth* all of $hich are a art hereof unless e" ressly set aside in $ritin# either on the a#es of this certificate* or )y $ritin# attached to the certificate and si#ned )y all arties concerned.

4. Unless other$ise stated herein* this certificate is )ased only on the readily a arent identity of the ite! a raised* and no further o inion* no #uarantee of authenticity* #enuineness* attri)ution or authorshi is !ade.

9. Unless other$ise stated herein* the a raised (alue is )ased on the $hole o$nershi and ro rietary interest undi!inished )y any liens* fractional interests or any other for! of encu!)rance or alienation.

8. 4his certificate is !ade at the reEuest of the arty na!ed and for his use. 4he identification of the interest of the reEuestin# arty is si! ly that re resented to the A raiser )y such atty and no inEuiry or in(esti#ation has )een !ade nor is any o inion #i(en as to the truth of such re resentation.

:. 4he (alue e" ressed herein is )ased on the A raisers )est 5ud#!ent and o inion and is not a re resentation or $arranty that the ite! $ill realiFe that (alue if offered for sale at auction or other$ise* nor is it a #uarantee of authenticity. 4he (alue e" ressed is )ased on current infor!ation on the date !ade and no o inion is here)y e" ressed as to any further (alue nor* unless other$ise e" ressly stated* as to any ast (alue.

;. 0nfor!ation furnished )y others is assu!ed to )e relia)le* )ut is not #uaranteed )y this A raiser.

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<. 4he A raiser is not reEuired to #i(e testi!ony* )e resent in any court of la$* or a ear )efore any co!!ission or )oard )y reason of this a raisal unless rior arran#e!ents ha(e )een !ade $ith the A raiser.

5. ,ossession of this re ort* or co y thereof* does not include the ri#ht of u)lication $ithout the $ritten consent of the A raiser. 4his re ort in its entirety or any art thereof* includin# the identity of the A raiser* shall not )e !ade u)lic throu#h ad(ertisin#* u)lic relations* ne$s* sales or other distri)uti(e or infor!ation !edia $ithout the $ritten consent of the A raiser. +. 4he A raiser has no resent or conte! lated future interest in the su)5ect ro erty or any other interest* $hich !i#ht tend to re(ent !a3in# a fair and un)iased a raisal. =. All !atters treatin# the duties* res onsi)ilities and lia)ilities of the A raiser are in accord $ith a ,rofessional 8ode of ethics and ractices used )y A raisers.

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Dlll "E INI$IONS C ABBREDIA$IONS

A. &',7A8'B'94 ;A7U'
&e lace!ent ;alue is deter!ined as= 4he hi#hest (alue in ter!s of cash or other recisely re(ealed ter!s that $ould )e reEuired to re lace a ro erty $ith another of si!ilar a#e* Euality* a earance* ro(enance or condition* $ithin a reasona)le len#th of ti!e in an a ro riate !ar3et.

2. 86B,A&A40;' BA&O'4 <A4A A,,&6A8C

4his is the ri!ary (aluation a roach used in al!ost all ersonal ro erty a raisals. 0t is the (aluation !ethod used to deter!ine the rice* $hich one $ould ay for another $or3 of eEual ;alue )y the sa!e artist* crafts!an or !anufacturer or one $hose re utation is considered to )e on the sa!e le(el. 4his a roach in(ol(es the co! ilation of a ro riate co! ara)les and the analysis of $hy these 8o! ara)les $ould )e considered in the (aluation of the o)5ect. 0t also in(ol(es the deter!ination of the "!ost a ro riate !ar3et lace" in $hich these 8o! ara)les $ould )e sold e*#* u)lic auction* ri(ate #alleries* trade a!on# collectors or directly co!!issioned fro! an artist.

8. ,&6;'9A98'
4he record of all 3no$n re(ious o$nershi s and locations of a $or3 of art

<. 76::':
<a!a#es to rint* fra!e or can(as caused )y a#e or !ishandlin# or en(iron!ental conditions

'. 09 ;'&:6
"At the )ac3 of referrin# to can(as or fra!e

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%. 0BAI'
4he ainted surface not co(ered )y the fra!e

I. ':4A%%AI'
4he ani!als or eo le in a aintin# or dra$in#

IH C#RRIC#!#M DI$AE

70:4 D6U& 8&'<'940A7: - this includes all your rele(ant history in the $orld of antiEues* art and collecti)les L includin# $here you $or3ed L e" erience #ained etc. Also include your infor!ation fro! the Asheford 0nstitute of AntiEues L statin# that you are a #raduate of our ro#ra!* and are PcertifiedQ to a raise in the field of antiEues > collecti)les.1 70:4 D6U& 6+9 '<U8A4069A7 history if you thin3 it $ill )e rele(ant as $ell. ,U4 4C' D'A&: )eside each lace you ha(e $or3ed at* or institution you ha(e attended.

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Concl*sion
;uch of what has been written in the previous pa#es throu#hout this final Plan may seem li&e pretty 'heady' stuff, but in actuality, it1s really (ust an attempt to provide appraisers with concise and succinct lan#ua#e on how to #o about an appraisal as well as how to conduct themselves. The rules of the PA++ are desi#ned so that appraisers will have 'e4act' codes of conduct and reference points from which to wor& from. It is not li&ely that most appraisers will be able to remember each and every point when conductin# a 'real-life' appraisal, however, if these rules are used as #eneral #uidelines, they should help improve your overall ability to appraise successfully.

The model of a professional-level appraisal also falls into this cate#ory - you0re not #oin# to remember every detail of how it was done * after all, that0s what !e4amples% are for * so try startin# with (ust a simple !in-house% appraisal first, as described at the be#innin# of this Plan. Test it out on your family or friends and #et some feedbac& on how your wor& was received. Ance you0ve mastered the basic principles, it0ll be time to move on to the professional-level appraisal. "on0t be intimidated by this, as the ne4t-level appraisal is really (ust li&e an !in-house appraisal% * only with more words. If you need further help, come bac& to your te4ts and carefully loo& over and review the professional-level appraisal a#ain * you0ll find virtually all the answers you0ll need within these pa#es.

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If you want to brea& into the arena of the professional appraisal #ently, try doin# a professional appraisal for yourself. Pic& one of your favorite antiques and conduct a full len#th professional appraisal on it * this may seem li&e a waste of time at first, but it0s not * simply chan#e the name in the client line of the appraisal report, to a friend or family member, and when you0re done, you0ll have a sample of a fulllen#th professional appraisal that can be used as a promotional tool to help sell your appraisal abilities and services.

S*,,ing #p
At this sta#e you should be fully qualified to run and operate your own Appraisal ervice. These te4ts, as well as the various teachin# aids, plus your own personal e4perience should equip you to handle almost any situation that mi#ht arise. ?emember, start slowly, build some confidence, chec& everythin# twice, and youTll li&ely find that you0ll be appraisin# in no timeL If any situation does arise that has not been covered, you can always contact the Institute for friendly and helpful advice from any of our representatives.

$est Af Iuc&, A%A Sta-- Writers / Appraisal Section

(Now it.s time for your Plan 5 / Appraisal !am)

IMPOR$AN$- Please be advised that all +ourse Payments must be completed and sent to the Institute before "iplomas are shipped. In addition to this, an overall +ourse mar& of =GO must be obtained in order for a "iploma to be awarded. 9inal 6rades are withheld until all tuition payments have been completed.

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