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Welcome to the ACA Appraiser's Update newsletter!
We will periodically be providing you with hard-to-find
personal property appraisal information that we're
sure will be of interest to you.
In this issue we discuss changes that have been
incorporated into the new 2008-2009 USPAP and that are
relevant to the personal property appraiser. In
addition, a detailed discussion regarding the inspection
process (or lack there of!) should prove of interest as
well.
You'll also find information regarding our 2008
Appraisal and USPAP course offerings - we'll be in
three
locations this year - Chicago, San
Antonio and Baltimore. Also, read about two endorsements
we recently received - one from the Appraisers National
Association and the other from the College For
Appraisers!
To ensure proper delivery, will you please click on
the "Update Profile/Email Address" link at the bottom of
this page to make sure we have your correct name
and email address? Thanks!
Sincerely,
Dave Maloney and Bill
Novotny
Appraisal Course
Associates | |
| 2008-2009 USPAP Now in Effect |
 Changes affect
personal property appraisers.
The
Appraisal Standards Board (ASB) of The Appraisal
Foundation issued the new 2008-2009 edition of the
Uniform Standards of Professional Appraisal Practice
(USPAP) effective January 1, 2008. Now published
biennially, this latest edition of USPAP will remain
effective through December 31, 2009.
Several changes of note were made to the new edition
of USPAP, one change being the elimination of the
Supplemental Standards Rule. Though seldom affecting the
personal property appraiser, the Supplemental Standards
Rule recognized that government agencies or other
entities might from time-to-time issue standards which
would be in addition to those of USPAP. Read entire
article |
| ACA Appraisal Course Schedule
Announced |
 Three Locations in 2008
We are excited to
announce our 2008 for offering the 2-day
National USPAP Course, the 1-day USPAP Update Course,
and our flagship offering, the 6-day "Appraising
Personal Property: A Core Course in Valuation Studies
Featuring USPAP." All courses will be offered in four
locations across the US during 2008 including in
Baltimore (June), San Antonio (August) and Chicago (October).
These courses are essential to understanding the
theory, principles, methodology and ethical
responsibilities of preparing personal property
appraisal reports. Read entire
article |
| Endorsements from ANA and CFA |
 Course and Book Receive Thumbs-Up
We are pleased to report that Appraisers National
Association has endorsed our Appraising
Personal Property course and have adopted it as
satisfying certain designation criteria. "The ANA
has officially approved endorsing your great course,
Appraising Personal Property", said Suki Higler,
Chairperson of Appraisers National Association.
Similarly, the College for
Appraisers has endorsed Dave Maloney's new book
"Appraising Personal Property: Principles and
Methodology - 2nd Edition" and has adopted it for its
own use. "All those on our faculty who have had the
opportunity to review Dave Maloney's "Appraising
Personal Property: Principles and Methodology" agree
that it is the best work of its kind and provides a
strong, useful and thorough tool for the professional
personal property appraiser. We have chosen to have this
book become the standard text for our course, Appraisal
Ethics and Research Methods," said Walter Miller, CEO of
the College for Appraisers. CFA has been offering the
highest quality education in antiques, collectibles,
fine arts, textiles and vehicles, and in professional
appraisal standards since 1980. "On behalf of all here
at CFA I want to thank you for this much needed work,"
added Miller.
"We are very pleased with these two
endorsements," said Appraisal Course Associates (ACA)
partner and co-instructor Bill Novotny, ISA AM, GCA.
"They are a recognition of the level of commitment and
professionalism my partner, Dave Maloney, and I have put
into developing the most complete, well-presented and
modestly-priced educational opportunity for the
professional personal property appraiser," he said. Read entire
article |
| HOT TOPIC: Is a Hands-On Inspection
Always Required? |
 The Short Answer is "No"...but read
on
The
primary reason for an appraiser to personally inspect a
property is to gather information about the
characteristics of the property that are relevant to its
value. (In general, these are referred to as
relevant property characteristics and
consist of quality characteristics as
well as value-relevant attributes of
the property.)
But is a personal inspection by the
appraiser required to gather the necessary information?
The answer is "No" (though it is advised whenever
possible.) Having said that, appraisers almost always
conduct a hands-on inspection of the property which is
the subject of the appraisal assignment; however, on
some occasions such as in the case of a theft or loss,
the property is no longer available for inspection. In
such cases, a personal inspection simply is not
possible. On other occasions, the high cost or risk of
loss of shipping a valuable subject property to the
specialist appraiser for examination might necessitate
an appraisal being conducted from afar without the
benefit of a personal inspection. For items that remain
available for inspection and which require special
testing procedures or equipment to prove genuineness or
quality, or which require authentication, or which are
potentially so valuable as to warrant the expense of a
hands-on inspection, the specialist appraiser should
insist that arrangements be made for a personal
inspection either by him/herself or by some other
qualified appraiser. Otherwise, the appraiser should
abandon the assignment. This discussion
addresses USPAP's requirements regarding the appraiser's
responsibility regarding inspecting
and "identification." |
| Q & A |
|
 Value Type and
Definition
Question:
USPAP requires appraisal reports to identify
the type and definition of value and cite the source of
the definition. What is the "type of value?" Why is this
no longer referred to as the "purpose" of the
assignment? What sources can be used to comply with the
requirement to cite the source of the definition of
value?
Response:
STANDARDS 2, 6, 8 and 10 require that appraisal
reports state the type and definition of value and cite
the source of the definition. The exact wording varies
by reporting option.
Previously, the term
"purpose" in USPAP was used to refer to several
different concepts, including the type and definition of
value. For the 2005 edition of USPAP, this and other
special meanings of this term were eliminated to
increase clarity. Where it is now used in USPAP,
"purpose" will only convey the standard dictionary
meaning of the word.
The "type of value" is
the general class or category of value. Examples include
market value or fair value.
The "definition
of value" provides a specific description of the
characteristics and conditions of the type of value.
Examples include definitions provided on a form report,
in FIRREA, in U.S. accounting regulations, and U.S. tax
regulations.
USPAP does not provide any
specific definition of value or endorse any particular
source. Sources could include, for example, a regulatory
agency, a legal jurisdiction, an engagement letter, or a
textbook.
Excerpted from, USPAP 2008-2009
Edition ©The Appraisal
Foundation | |
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ACA Appraiser's Update
