|
- 1. "What
qualifies you to appraise my property?"
- A qualified appraiser has formal education in appraisal
theory, principles, procedures, ethics, and law. The
appraiser should be up to date on the latest appraisal
standards. Continuing education and testing are the only
ways to ensure this competence.
The appraiser you hire should be familiar with the type
of property you want appraised and know how to value it
correctly.
Expertise on a particular type of property is not enough
if the "expert" does not know how to evaluate an
item for its appropriate worth. Without appraisal training,
these "experts" have no way of understanding the
complicated variety of marketplace definitions that are used
to determine appropriate values for appropriate uses.
For example, a museum curator may be able to authenticate
a work of art, or a jeweler may be able to determine the
identity of a gemstone, but neither may be able to value
those items correctly unless they follow appropriate
appraisal principles and procedures.
- 2. "Do
all appraisers have similar qualifications?"
- No! In most states anyone can claim to be a personal
property appraiser, whether they have had formal training or
not. Until legislation is passed to protect the public from
the unqualified appraiser, the burden is on the consumer to
evaluate an appraiser's credentials.
It is important to ask the prospective appraiser what
type of formal appraisal education training he or she has
received. Obtaining a copy of the appraiser's professional
profile or resume can help you evaluate the appraiser's
credentials.
- 3. "Do
you belong to an appraisal society that tests its
members?"
- There are many appraisal organizations, but only a few
require members to take courses and pass tests before being
admitted as "accredited" members. ISA is such an
organization.
Membership in an appraisal association is important
because it shows that the appraiser is involved with the
profession, has peer recognition, has access to updated
information, and is subject to a code of ethics and conduct.
- 4. "Have
you been tested? Do you take continuing education
classes?"
- If the appraiser claims membership in a group that trains
and tests its members, be sure to ask if this appraiser has
personally gone through the training and testing.
Some organizations have "grandfathered" members
into high membership status without testing them. "Grandfathering"
means allowing members to retain their titles and status if
they joined before new rules or testing standards were
required. ISA has an absolute non-grandfathering policy.
Continuing education is also important for appraisers.
Procedures and regulations are always changing. Because of
this; ISA constantly updates, expands and re-writes its
courses to ensure that its members will perform the work you
need with knowledge of all the latest professional
standards.
- 5. "How
will you handle items which may be outside your specialty
area?"
- No appraiser should claim expertise in everything. ISA
recognizes over 220 areas of specialty knowledge. A good
appraiser knows his or her limits, and is expected to
consult with other experts when necessary.
- 6. "What
is your fee and on what basis do you charge?"
- DO NOT hire an appraiser who charges a percentage of the
appraised value, or charges a "contingency" fee.
These practices are clearly conflicts of interests, and may
result in biased values. The IRS will not accept an
appraisal done with such fee arrangements.
ISA Appraisers are prohibited by their Code of Ethics
from charging a fee based on a percentage of the value of
the property appraised. Hourly fees, flat rates, or per item
charges are acceptable.
- 7. "What
will the appraisal report be like?"
- You should receive a formal, type written report that
presents the information you need in a complete and
organized way.
Some appraisal societies only teach appraisal theory with
no 'real life' examples. ISA is the only major appraisal
society in the United States that specifically trains its
members in how to write standardized, comprehensive
appraisal reports. Each accredited member has been tested on
these standards.
|
|
