What is an Appraisal?

An appraisal is a formal document concluding a supportable opinion of value. It is prepared by an unbiased expert who is knowledgeable regarding the property and who acts in accordance with accepted standards of practice.

What Are the Most Common Types of Value?
 
Fair Market Value: the hypothetical price at which a property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts. It is used in valuations for IRS, including charitable contribution and estate tax, and often in circumstances such as loan collateralization.

Replacement Value: the price to replace a property with another of comparable quality in a reasonable timeframe and usually without negotiation. It represents the highest of appraisal values and is typically used in the context of insurance matters.

Marketable Cash Value: the anticipated net price to be received by the seller upon sale after deduction of relevant fees. It may be used in the context of family division / equitable distribution, and in other matters as needed.
 
What is the Difference Between
an Appraisal Report & a Restricted Appraisal Report?

An appraisal report contains a complete rationale for how the appraiser arrived at their value conclusion, while a restricted appraisal report is a condensed version which may not contain supporting rationale for all opinions and conclusions. (Equivalent research is undertaken and all data is retained in the appraiser's workfile.) A restricted appraisal report must identify all intended users by name.

Is the Appraiser an Advocate for the Client?

No. A professional appraiser may not perform any assignment with bias or accept any assignment that includes the reporting of predetermined opinions and conclusions.

Why is it important for an Appraiser to be Independent?

A professional and accurate appraisal must be impartial. Appraisers who operate independently avoid conflicts of interest, such as concluding a low value if interested in purchasing the work or concluding a high value to encourage the owner to sell on consignment.
 
Is the Cost of the Appraisal Associated With
the Value of the Work Appraised?

No. It is unethical for the cost of a professional appraisal to be contingent upon any value conclusion.

Does JL Fine Art Appraisal Need to See the Work in person?
 
In most cases, an on-site examination is necessary to identify and inventory the items to be appraised. JL Fine Art Appraisal is based in Rockville Centre, Long Island (Nassau County, New York) and is available to travel as needed.
 
Is Client Information Kept Confidential?
 
Yes. Absolutely no confidential client information or related assignment results will be disclosed to anyone other than the client or parties specifically authorized by the client. 
 
What is USPAP?

The Uniform Standards of Professional Appraisal Practice (USPAP) is a publication that outlines Congressionally-authorized appraisal terms, rules, and standards to ensure that appraisals are objective and ethically prepared. It is published every two years by The Appraisal Foundation, a non-profit authority on the valuation profession.

Is JL Fine Art Appraisal Insured?

Yes. JL Fine Art Appraisal carries a full line of professional liability insurance coverage.


The information published on this website and in any materials or reports issued by JL Fine Art Appraisal is not to be construed as legal or tax advice.