What is An Appraisal?

There seem to be more and more opportunities to take items to an Appraisal Fair, Appraisal Day or other venue and have someone look at it and give you a value. (For a discussion on different types of value see How can there be Different Values for a Single Object? ) The question is, have you just gotten an appraisal?

Technically speaking, what you have just received is not an appraisal. Rather, it is a “Verbal Approximation of Value”. Is it useless or wrong? Not necessarily, it just does not contain all the attributes and components required by the major Appraiser accreditation societies to be considered an appraisal.

Often, the people who are valuing objects at these events are longtime dealers or collectors who specialize in the objects they are examining. Sometimes they are Accredited Appraisers. They have a very good knowledge of their specialty area and the current trends and values.

On television shows like Antiques Roadshow each person giving values is an expert in their areayet what they are giving still must be classified as a Verbal Approximation of Value. If that’s so, then what is an “appraisal”?

Components Required for an Appraisal

Certain standards have been set up according to voluntary standards which start with the Appraisal Council, a government organization, which published the USPAP or Uniform Standards of Professional Appraisal Practice. These standards were created to give guidance to Real Estate Appraisers. The standards are mandatory for Real Estate but the different Personal Property accreditation groups (ISA, ASA, etc.) require or strongly recommend their members adhere to applicable parts. A separate course on USPAP is now required for ISA and ASA re-certification.

The appraisal is a typed document which should contain a minimum of these components:

1. A cover document which includes

a. A statement as to the type of value and intended use of the information;

b. A definition of the value being provided;

c. The effective date of the appraisal;

d. Where the property was located and who was present at the inspection

e. A disclaimer if the report is used for any purpose other than the stated intent

f. A summary of the total appraised value of all objects;

g. Who the intended user of the information is;

h. How the value was determined;

i. A statement as to the ownership of the property.

2. A certification by the appraiser that states:

a. Any critical assumptions or limiting conditions;

b. Any future or past interest in the property which

the appraiser has;

c. How the compensation was determined;

d. A statement relative to personal inspection;

e. Any professional assistance from others.

3. A copy of the Appraiser’s qualifications

4. A complete description of each item

5. Photographs of each item

6. Value of each item

The value given in an appraisal is based on research or, more rarely, the expertise of the appraiser. The appraiser must be prepared to defend the evaluation in court in many cases so having data in hand beats experience any day. The appraiser must find and be prepared to offer data on comparable items which have sold within a reasonable time period. If the appraiser has expertise in a particular field, either as a collector or seller of similar items, they may offer their expertise as justification for the value in that market.

As you can see, a true appraisal is considerably more than a verbal value or a note with a number scribbled on it. Do you always need a true appraisal or is a verbal approximation of value enough. In many cases the verbal is all you need for your purpose. Often I encourage clients at my shop to start with that and then we can decide where to go from there. For a more detailed discussion see Why do I Need an Appraisal?

For more information, contact Michael Logan at

Trace of Time Antiques

242 East Center Street

Kingsport, TN 37660

423.246.5200