Be Sure of Identity and Value -- Call Your Appraiser!

Pretty sure this didn't end well.

3 Easy Tips for Appraisal Preparation

Contrary to the image given appraisals by programs like Antiques Roadshow, professionally written appraisals are very serious documents. They are products of diligent research that must respond to myriad conditions and circumstances, all of which are processed by the appraiser.

The true professional appraiser spends considerable time and effort keeping up their credentials by constantly pursuing continuing education – on top of the time they’ve already put in that gives them expertise in a given field.

Appraisals may serve as evidence in a court case, or as documented support for an insurance claim. They may be the go-to document for a family wanting to split up an estate fairly and efficiently. I’m sure you can come up with other very serious uses for an appraisal.

‘You get what you pay for’ is the philosophy at work here.

All the same, there are ways a client can help expedite the appraisal process and save themselves money. As with most things in life, the best way is by paying special attention to the organization of the items under consideration.

Clients regularly ask how we can streamline their process to both expedite the final product and save themselves a bit of money. Because I too want the process to go as smoothly as possible, I offer the following tips:

1) Organize the items to be evaluated in a well-lit area that provides the inspecting appraiser a 360-degree view of the items, including room to tip large items to view the undersides or backs.

For fine art, it may be necessary to remove an item from its frame. Fine art appraisers like myself are knowledgeable about this process. When it comes to fine art, bear in mind that the frame rarely adds value to the work itself, so don’t worry about it being removed briefly from its frame. Appraisers are adept and removal without compromising the frame.

Having the work secured back in the frame is usually quite painless. If the back of the frame is sealed by a large sheet of paper, it may be that there is an attempt there to hide something that will significantly impact value, and appraisers must be sure of all aspects of your piece before rendering a trustworthy value conclusion. This is for your own good, as they say!

2) Talk to your appraiser about cleaning up the items before the inspection. This is an important step because there are some kinds of items whose value might be harmed by cleaning, such as things with confirmed historical importance, and your appraiser will surely tell you not to touch a thing.

Your appraiser should also be able to offer you handy tips for safely cleaning up your items in a way that will make them look their best, no matter what their condition. Even if cleaning up something means exposing a flaw, it should be done. Believe it or not, the flaw may actually add value to a piece, but in the end what you want is an accurate valuation of the item in its current state.

3) Gather any provenance beforehand, that is to say, formal documentation of an item’s journey through the past, such as its gallery or show appearances, loans or displays in museums, and any previous sale documentation whether auction or private. These documents may well save the appraiser time by helping streamline the research process.

But don’t panic if your item doesn’t have any of these things – absence of provenance is more common than you might expect!

So there you are! Three easy things you can do that can save you money and help your appraiser produce the most accurate appraisal document possible!

Earlier this week, I completed a 7-hour update course on the Uniform Standards of the Professional Appraisal Practice (USPAP), which is required to maintain membership in the International Society of Appraisers (ISA). 

Formally educated appraisers that are members of professional appraisal associations like ISA are also required to maintain

USPAP compliance and keep current with changing rules through continuing education. 

Compliance involves an initial two-day 15 hour class (including exam), and a 7-hour update class every two years. Whether or not you need an appraisal that will be reviewed by the IRS, full USPAP compliance along with affiliation with a professional appraisal association are the truest indications of an appraiser’s seriousness and professionalism. The ISA requires members to take this course every two years in order to stay current with changes in the standards which reflect current laws.

If these standards are new to you, here’s a basic overview of the rationale:

USPAP was established for appraisers who evaluate real estate to fine art, rare books, collectibles, intangibles, and business valuations in the United States and territories. The IRS requires appraisals written for their use to be USPAP-compliant for certain amounts.

I'm expecting a more formal certificate soon...

It was developed with the express purpose of promoting and maintaining a high level of public trust and confidence in the professional appraisal practice. The development of uniform standards enhances the role of the appraiser in society and reinforces the appraiser’s obligations to act in a manner that promotes public trust and confidence.
The Uniform Standards of Professional Appraisal Practice (USPAP) reflect the multifaceted nature of the profession. USPAP changes are made in conjunction with changes to the appraisal profession, as well as the changing needs of potential clients. The changes are intended to improve the clarity, understanding, and enforcement of USPAP.

Click here for more on USPAP. 

Professional Jewelry Appraisals Have a Home in Kansas City!

The phone rings. The voice on the other end is tinged with exasperation. “My family is working through my late mother’s estate. She’s got lots of antiques and a lot of regular stuff, too. And jewelry. Lots of jewelry. We’re a little overwhelmed trying to figure out what the value on it all is before we decide what to do. We really need help.”

While I can help with much of the estate, there is a group of things outside my areas of expertise - jewelry. And for just this sort of eventuality, I maintain a network of appraisers that specialize in areas outside my own. These I can either pull in to complete a part of your appraisal or simply refer you to them. Always depends on the client's unique situation.

And speaking of jewelry, I recently interviewed friend and fellow personal property appraiser Tracey Kahle of Kahle Appraisals in Overland Park, Kansas. Her specialty happens to be, guess what? Jewelry! We discussed what appraisers do, how they do it, a few misconceptions regarding jewelry and jewelry appraisals, and how you know you’re getting a worthwhile appraisal product. Read on!

Introduce yourself! Tell us about your background and the kinds of appraisals you conduct.
My name is Tracey Kahle, of Kahle Appraisals. I have 28 years of experience in the jewelry industry. I’m a graduate Gemologist from the Gemological Institute of America and credentialed with the International Society of Appraisers. I provide appraisals for various uses, from insurance to damage claims to equitable distribution of assets, divorce settlement, collateral, estate taxes, charitable donation, and more.


How would you describe what an appraisal is? Are there misconceptions?
It is truly a mystery for most just what an appraiser does. Many think value can be defined immediately even without a thorough inspection or examination, but it’s more complex than that.

Essentially, there are three steps, the first being examination. In this step, I determine the jewelry type, including defining precious metals and gems and authenticate designers or makers. The second step is value research. I examine appropriate marketplaces to determine what values for each piece – an appropriate marketplace being defined as where at item is most commonly sold between a knowledgeable buyer and knowledgeable seller, both in full possession of all relevant facts surrounding the property and both under no compulsion to buy or sell.

Anyway, these marketplaces could be databases, individual vendors, or auction houses, simply depending on the situation. Depending on the intended use of the appraisal, I will search both retail markets, which we consider primary and secondary markets such as auction houses.

Do you find clients confuse an appraisal with an authentication?
Yes, they really do - but appraisals are not authentications at all. While appraisal work is based on readily apparent identity, I won’t conduct an appraisal if I’m not sure about the qualities or composition of an item. If necessary, like when it will have an impact on value, I seek out other experts to authenticate the item before doing the appraisal.

What is USPAP and why do appraisers make a big deal out of it?
I work within the USPAP (Uniform Standards of the Professional Practice) guidelines. USPAP protects the consumer from any type of bias the appraiser may potentially have. USPAP also means that the appraiser is bound to operate without any predetermined result in mind. So essentially, USPAP embodies a higher standard of ethics. As people who buy and sell real estate know, real property appraisers are also bound by USPAP.


Why is it important that an appraiser not work on a contingency basis?
A contingency is against the principles of USPAP, and means one is expecting a certain outcome before any type of research is conducted. Paying an appraiser based the outcome of the appraisal is absolutely unethical, and it’s pretty easy to figure out why.

What is the most common form of appraisal you’re asked to conduct in jewelry?
Insurance coverage, easily. Clients are usually seeking to acquire a scheduled policy for their valuables.


Do insurance companies just accept the appraised value?
I do replacement values for if the insured had a loss. The insurance company can negotiate the level of coverage with the client individually, and they’ll use my appraisal as the bedrock.


How often are a client’s assumptions about their property wrong and how do you correct them?
About half the time. They could believe their jewelry is more or less valuable than the appraised value. More often than not, though, a client has received a piece of paper at the point of purchase with an inflated value. Unfortunately, clients can pay inflated premiums because of that over-inflated value, so you can see where having a professional appraisal done can actually save you money!

Once they figure out the value is inflated, are they ever disappointed?
Many times I’ve been questioned about why the original stated value was so high! My response is based on the simple fact that I cannot speak to the documentation behind that high value, or what it was based upon. But my appraisal work is based on current values, accurate and up to date, researched through industry-recognized marketplaces and databases.


What should one look for in an appraiser – is credentialing important? What sets you apart?
Unlike real estate appraisers, personal property appraisers aren’t required to be licensed. This means anyone, regardless of your level of experience or education can present themselves as an appraiser. But as a professional, I base my credentials on my GIA graduate experience, along with ISA’s appraisal methodology and report writing, and sought credentials through the ISA.

How much education goes into being a credentialed appraiser, affiliated with a professional association?
ISA requires 500 hours of experience in your particular field. They also require recertification every five years. This ensures the appraiser is up to date on necessary requirements and changing laws.


Let’s say I want to become an appraiser. What advice do you have? Where should I start?
The best way to start is to educate yourself in the field you plan to appraise. Get experience in the field buying and selling. Retail can be helpful because it allowed me to first gain experience selling the product. I also spent many years buying on the wholesale level. I have friends and colleagues that work in the auction market that I can rely on for information. After that, I recommend you join a reputable appraisal association that embraces USPAP on top of rigorous report-writing standards. This will inspire confidence in your clients and respect from fellow appraisers!

For more information on appraisals by Tracey or to schedule an appointment, go to www.kahleappraisals.com or call her at (913) 912-9122!

Appraisers Are Your First Line of Defense!

Everyone dreams of being the lucky devil we hear about every so often who picks up a piece of artwork or artifact at a garage sale, and it turns out to be worth a small fortune.

Of course, no one wants to be the seller who turns on Antiques Roadshow a year or so later to see their old item hauled before the show’s appraiser who then gushes over the piece and estimates a value that might have paid off the previous owner’s house.

That’s why I always say, ‘be sure of identity and value – call your appraiser!’ While I often couch this in comic terms, I’m actually very serious.

Many times have I worked for a client whose assumption was that book, those prints, those primitives, those whatever, were garage sale fodder - only to have me come in and identify them as historically significant and highly desirable to the market. In fact, there is no better feeling for an appraiser than saving a client embarrassment and finding them money where they thought there was little or none.

A large portion of the appraisals I’m asked to do are for insurance. The client knows they have nice things and want documentation to protect those items - and themselves - from risk. Very wise.

Of course, things are not always so clear-cut for everyone. Sometimes people inherit items. Sometimes the items have been in the family for years and are assumed to be this or that and have X value, but no one knows for sure.

Be sure of identity and value, call your appraiser!

Recently, in one of the many Facebook collector groups I follow, there was a story about a man who was selling a flag for $200. Happily, the prospective buyer knew it was worth far more and insisted on giving the seller far more so the buyer ‘could sleep at night’ after he resold the item for what he knew was going to be a handsome profit.

Sadly, I don’t recommend counting on finding many people whose belief in honesty and karma outweighs their pursuit of short term gain.

Reputable appraisers - that is to say those affiliated with major appraisal associations like the International Society of Appraisers, should be perfectly willing to help you with value discovery. The process is usually quick and inexpensive. The professional membership and credentialing is vital because it ensures they’re not going sell you an appraisal based on made up numbers you’ll later discover were bogus, just so they can take a few hundred dollars off you and disappear.

And remember, if an appraiser begins talking to you about buying the item directly, excuse yourself from the conversation and contact me so I can direct you to a real appraiser in your area!

Appraisal: Being Sure of Identity and Value

In this new series of blog posts, I’m going to outline basic concepts and terminology used by appraisers that will help you understand the methodology behind the appraisal process.

So, just what is an appraisal?

Someone tells you ‘what something is worth,’ right?

Well, not exactly.

Of course, there’s usually also at least one smarty-pants orbiting the conversation that will spout ‘it’s only worth what someone will give you for it,’ and then ‘har har har’ with an air of unearned self-satisfaction.

Ignore them.

Definition: Appraisal is the act or process of developing an opinion of value, estimating cost, or calculating the present worth of future earnings; a written or oral report documenting same; of or pertaining to appraising and related functions, e.g. appraisal practice, appraisal services.

Pretty simple, eh?

It is. Where it can get complicated is in the application, when we put this process to work for a client’s unique needs – and every appraisal project is different in some way.

It may be in the objective – meaning the client wants to obtain insurance coverage, settle an insurance claim, make a charitable donation for tax purposes, split up personal property equitably (in short: equitable distribution), resale, or simple curiosity. Or it could be in how the properties are being administered during the appraisal process.

Each of these objectives brings its own approaches and parameters. Your appraiser should listen carefully to your needs, decide which form of appraisal will suit your needs best, and explain in great detail how their work is going to address those needs.

The appraiser should also be available after the appraisal is finished to be sure everyone understands the scope and limitations of the appraisal report, and answer any questions you or your authorized agent might have.

Your appraiser should also have a confidentiality clause in their report, meaning they will not share the details of your report with anyone without your written permission, or unless ordered to by a court of law.

For instance, while my website shows many objects I offer appraisals for, none of them have been subject to any appraisal done by myself.

An appraiser should also be honest with you if what you have is within their specialty areas. After all, it’s not possible to know everything about everything. Legitimate appraisers outline their specialty areas clearly and should have a network of other appraisers they can call in to assist in a project that has components outside their competency.

Appraisals should always be USPAP certified. USPAP, or Uniform Standards of the Professional Appraisal Practice, are quality control standards – ethical and performance - for personal property, intangibles, and business valuation appraisal analysis and reports in the United States and its territories. The IRS requires appraisals written for their use to be USPAP-compliant for certain amounts.

Formally educated appraisers that are also members of professional appraisal associations like ISA are required to maintain USPAP compliance in all reports, and keep current with changing rules through continuing education.

Compliance involves an initial two-day 15 hour class (including exam), and a 7-hour update class every two years. Whether or not you need an appraisal that will be reviewed by the IRS, full USPAP compliance along with affiliation with a professional appraisal association are the truest indications of an appraiser’s seriousness and professionalism.

Does it always have to be such a big, costly deal? 

Absolutely not.

Not every appraisal has to be a ponderous, weighty process. Sometimes you may only want to know if what you have has any value before deciding your next step. Your appraiser should be willing to consult with you freely for item identification or value discovery.

Next up: Value Discovery

Personal Property and Peace of Mind

In 2014, Consumer Reports published a handy flow chart outlining the process of dealing with personal property, or what they called “stuff.” And at the very top, directly beneath the first item, what do we find? “Get an appraisal.”

Seems simple enough, right? One of the more frequent calls I receive involves folks with “stuff.” Yes, stuff. But often they are unsure of what this stuff is – let alone its worth.

Sometimes the caller is managing an estate of stuff left behind by a relative. There may be other family members involved in overseeing its administration. Sometimes the family is in no hurry to deal with the stuff, other times the stuff has become an albatross, a time-sucking personal property stuff vampire that has raised tension between family members and just needs to be dealt with as swiftly as possible.

Other times it may be stuff the individual has collected but are now unsure of value. They know what they paid for the stuff, but they also (rightly) suspect that doesn’t really mean anything anymore.

Sometimes grand tales have been appended to the stuff, and a client is curious what effect it might have on the stuff’s desirability.

Of course they’re understandably hesitant during the call because they really don’t want to pay for a formal written appraisal on stuff that just isn’t worth it. And why should they?

In short, when they call me, they’re really looking for assurance and protection. They want to know they’ve done due diligence regarding the stuff by finding a professional to assist with discovery and identification.

They’re tired, overwhelmed, intimidated, or generally confused about their next step. Happily their challenge is not as big or daunting as they might believe!

My goal in this phase is to arm my clients with knowledge, perspective, options, and ultimately, peace of mind. I provide information about the items that will help the client with resolution, so they can confidently take their next step with the property, whether that involves liquidation, donation, equitable distribution, personal accession, or some other eventuality.

Now, appraisers like myself that work to maintain membership in professional appraiser associations like the International Society of Appraisers (ISA), American Society of Appraisers (ASA), or American Association of Appraisers (AAA), are “cap specific,” that is to say we define our role in any situation very precisely.

If I am acting as an appraiser, I am bound by a very specific code of ethics that does not allow me to wear multiple caps at once. For instance, I cannot be an authenticator and an appraiser at the same time. The conflict of interest is, I think, obvious. If you call an appraiser that offers to do both, hang up.

So, how are my services different?

As outlined above, I may serve as an appraiser or a consultant. As a consultant I can freely inspect a client’s stuff and search for pieces that might have a value worthy of further consideration, judged by whatever criteria the client has outlined. The reasoning may have nothing to do with monetary value.

What the client stands to gain from our association is security, confidence, peace of mind, and knowledge. The cost for this type of service is considerably less than a formal appraisal, and in some cases can even be credited toward a formal appraisal of items the client already had in mind, or have discovered along the way.

Is Donation Right For You?

Going back to the flow chart, one area that is underemphasized is charitable donation. This is an avenue that clients often find serves their interests more effectively than worrying over marketplaces they’re unfamiliar with.

Having worked the auction side in the past myself, they’re almost always up front with how afraid they are that an item being sold at auction for less than they believe it is worth, but they don’t have the time or patience to micromanage a consignment shop situation.

The fastest solution for these clients is to use the inspection process to:

• Discover the stuff they want to keep.
• Identify the stuff having what they deem to be significant value – again often regardless of monetary value.
• Consider the avenues for donation according to the highest and best use of their stuff.
• Order a USPAP-compliant donation appraisal on the remaining stuff for tax relief.

Now that we’ve worked our way through some options, let’s figure out what appraisers mean by USPAP-compliance.

If you’ve bought or sold a home, you have probably heard the property appraiser mention USPAP. This is because both real property and personal property appraisers use the same basic standards during the valuation process.

Now, we know risks associated with personal property are mitigated by having a formal appraisal. It follows that appraisals are vital to obtaining accurate and adequate insurance coverage, settling a claim, helping determine estate tax liability, documenting a charitable donation, aiding in equitable distribution, or even just in preparation for resale.

The fact is, more and more people are realizing, sometimes too late, that their basic homeowner insurance policies is not enough to cover their collection of antiques, artwork or artifacts. Other times items are shrouded in mystery and folks are simply curious about what they have, especially inherited pieces thought to have historical significance or special value. Accurate identification and valuation is vitally important because it almost always determines your next step in protecting the property.

You may have already had an appraisal on items, but the report is more than five years old. A updated report not only protects you with more accurate current numbers, but I am often able to append an even greater amount of detail and historical perspective to your items that will serve your future generations when they look back on the family heirlooms, as well as ensure that they will not be fooled by unscrupulous selling agents or auctioneers that might otherwise want to take advantage of holes in your knowledge about your own items.

But not all appraisers are equal!

There are three main professional appraisal associations operating in the USA, the International Society of Appraisers, the American Society of Appraisers, and the American Association of Appraisers. Members of each association are held to the highest standards and continually work to maintain their credentials within their association. When you do finally choose an appraiser or consultant, be sure they are a member of one of these three organizations.

You will hear those of us that are part of these professional appraisal associations talk about “Uniform Standards of the Professional Appraisal Practice,” or USPAP.

What are these standards and why are they important to an appraisal?

Think of them as quality control standards for appraising both real estate and personal property. In the United States they are administered by the Congressionally-authorized Appraisal Foundation. The IRS requires appraisals for their use to be USPAP compliant. Appraisers that are members of reputable associations like the ISA are required to maintain USPAP-compliance.

Whether you need a formal or verbal appraisal, or just basic advice, USPAP compliance is the truest indication of an appraiser’s seriousness and professionalism.

Create your own file or database with an inventory and photographs of your personal property. Include your original receipts and any pieces of provenance, no matter how seemingly small or insignificant. These can provide clues or act as evidence to a future appraiser that might help your valuation. Inspect your items frequently, and call a professional if things don't seem right. 

If you have an artifact, antique, artwork, rare book, general collectible, or even an entire estate filled with different kinds of “stuff” – give me a call at (816) 289-5400 or send me an email, I’m ready to help!

For more information on USPAP, see my website: www.charleskeller.net

Uniform Standards of the Professional Appraisal Practice: Why They're Important

Personal property often requires a formal appraisal in order to obtain insurance, settle a claim, help determine estate tax liability, document a charitable donation, aid in equitable distribution, or just in preparation for resale. Other times you may simply be curious about what you have, its potential value, or just what to do with it. That’s where I come in with a formal or verbal appraisal, or consultation.

More and more people are realizing that their basic homeowner insurance policies are likely not enough to cover their collection of antiques. Other times items are shrouded in mystery, especially inherited pieces thought to have historical significance or special value. Accurate identification or confirmation of value is very important because it almost always determines your next step in protecting your property.

But not all appraisers are equal! You will hear some of us that are part of professional appraisal associations such as the International Society of Appraisers, talk about “Uniform Standards of the Professional Appraisal Practice,” or USPAP.

What are these standards and why are they important to an appraisal?

Think of them as quality control standards for appraising both real estate and personal property. In the United States they are administered by the Congressionally-authorized Appraisal Foundation. The IRS requires appraisals for their use to be USPAP compliant. Appraisers that are members of reputable associations like the ISA are required to maintain USPAP-compliance.

Whether you need a formal or verbal appraisal, or just basic advice, USPAP compliance is the truest indication of an appraiser’s seriousness and professionalism.

If you have an artifact, antique, artwork, rare book, general collectible, or an entire estate – give me a call or send me an email, I’m ready to help!

For more information on USPAP, click here.