, , , , , , , , , , , , ,

Since we began this blog last spring, our posts have focused on how we approach our work, the philosophy behind it, and how readers can be informed and empowered to make decisions about their property.  Today is the first in a series of posts about our work itself, what we actually do at Tangible Good.  Where better to start than by answering the basic question, “what is an appraisal?”

Properly speaking, appraisal is the process of determining an item’s value.  The appraisal report is the product of that process.  The cost of an appraisal and appraisal report reflects the time and expertise needed to arrive at a reliable conclusion of value: it is never contingent on the value itself.

Tangible Good provides appraisal reports that conform to the Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by The Appraisal Foundation, authorized by the US Congress as the source of appraisal standards and appraiser qualifications.  Properly prepared appraisals are individual written reports and are not simple lists of property with numbers attached. The specific content and format of each appraisal report varies according to the individual situation, but each appraisal should contain the following information:

  • Name and address of client
  • Statement of purpose for the appraisal (ie: Donation, Estate, Equitable Distribution, Insurance, etc.)
  • Explanation of the type of valuation used (ie: Replacement Value, Fair Market Value, Marketable Cash Value, etc., and its definition) Explanation of valuation approach (ie: Cost Estimate Approach, Income Approach, Market Data Comparison Approach, etc.)
  • Explanation of the market in which the valuation is applied (i.e. the most common market)
  • Market analysis (relative market history and discussion of possible projections for future activity
  • Statement of how objects were acquired (required for IRS purposes)
  • Statement of professional qualifications of any and all contributing appraisers (their curriculum vitae) and clear division of responsibilities;
  • Date of preparation of appraisal and date on which objects were viewed; as well as the effective date of the appraisal
  • Statement of physical inspection or method used in determining value as well as any limiting conditions
  • Statement of “disinterest” on the part of the appraiser and statement that the appraisers fee is not contingent on the appraised value of the object(s)
  • Statement that the appraiser has not been “disqualified” by the IRS (for IRS appraisals)
  • Statement of “Assumptions and Limiting Conditions”
  • Thorough description of the appraised objects including:

1. Brief biography of the artist / maker

2. Provenance

3. Exhibition and publication history

4. Comparables and related analysis

5. Firm statement of value

6. Signature of appraiser(s) and tax ID number(s) when appraisal is prepared for IRS purposes

7. Photographs of the property

8. Statement of condition of appraised objects

For a complete description of all our consulting and appraisal services or to download our rate sheet, click here: Tangible Rates and Services