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Appraisal
reports are your final work product, and we all want
them to be concise, accurate, objective and
well-written. Sometimes, though, you struggle to put
a concept into just the right words. We enjoy sharing
with you appraisal wording that has proven
successful for us. In this issue of the ACA
Appraiser's Update newsletter we discuss the
requirements of the relatively new Pension Protection
Act. We also give an example of the "declaration" the
Act requires be made by the appraiser when
doing donation appraisals (and, by extension, other
Federally-related appraisals as
well.)
Speaking of
wording, we do not support appraisals that are written
in a boilerplate fashion where little is changed from
report to report other than the name of the client and a
description of the property. Every word of every
appraisal must be reviewed and amended as necessary for
every assignment. Appraisal report templates,
however, can make your life a lot easier as can the use
of unchanging disclaimers and terms of use that are
relevant to the assignment at hand. In this newsletter
we discuss the role templates play in the
preparation of professional appraisal
reports.
You'll also
find in this issue information regarding our complete
course (including the Uniform Standards of
Professional Appraisal Practice (USPAP)) for the
personal property appraiser scheduled for Baltimore,
MD from June 13 to 18, 2008. Everything you
need to succeed as an appraiser is right here in
this 6-day, on-site offering.
And note,
too, the below announcement that the 2nd Edition of Dave
Maloney's 416-page book, Appraising Personal
Property: Principles and Methodology
(Appraisers Press 2008) is now ready for purchase.
Already own the 1st Edition? If so, you are entitled to
50% off the 2nd edition!
Be sure to check-out our past
newsletters for some great appraisal and USPAP tips,
news, announcements and suggestions.
 Sincerely,Appraisal
Course Associates
P.S. 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!  | |
| Appraisal Report Templates |
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Templates help ensure consistency,
professionalism
 The appraisal report is a
sophisticated document made up of many required elements
of information which are combined with optional elements
of information and boilerplate disclaimers and terms of
use that might be needed depending upon the particular
assignment. Preparing your first appraisal report is a
daunting task for the beginning appraiser but not one
which need be repeated if the appraiser makes use of
appraisal templates. A
career as an appraiser is based on a proper report and
the careful development of credible opinions. Good
report templates help the appraiser to prepare complete
reports which are in compliance with USPAP and which
meet the expectations of typical clients and other
intended appraisal report users.
Read entire article |
| "Appraising Personal Property: Principles and
Methodology" 2nd Edition Now Available |
|
This
first-ever book for personal property appraisers covers
appraisal principles and methodology including
terminology, approaches to value, research, ethics,
sample appraisals and much, much
more.
 "Appraising Personal
Property: Principles and Methodology - 2nd Edition" is
the only complete, well-organized, practical and
fully-indexed course book and reference guide to
personal property appraising. Written with the Uniform
Standards of Professional Appraisal Practice (USPAP) as
its foundation, this is a complete book and not merely a
course outline. It is unique. No other book or course of
instruction provides such a thorough grounding in the
fundamentals of personal property appraising. This
course book will teach you the appraisal theory,
principles, practices and methodology associated with
preparing professional appraisal reports, and, being
fully-indexed, the reader is quickly able to locate the
appraisal-related information he/she is
seeking.
And the
book just got better! This new 2nd edition incorporates
many important changes, improvements and additions -
perhaps the most significant of which were brought about
by The Appraisal Foundation Appraisal Standards Board's
recent biennial update to USPAP. The resulting changes
that were incorporated into the 2008-2009 edition of
USPAP are mirrored throughout the book. Other
improvements include additional topics and enhanced
discussions on a host of subjects including when
appraisers should comply with USPAP, appraisal updates,
intended use and intended user, value types and
definitions, using more than one appraiser, the
inspection process (or lack thereof), scope of work, use
of photographs in lieu of a personal inspection,
disclosure statements, significant personal property
appraisal assistance, workfiles and more. Take a
closer look:
"Maloney's guide to
proper personal property appraisal methodology is so
thorough that it can truly be called the only complete
source on the subject. This essential guide to the
preparation of ethical and professional appraisal
reports should not only be a required addition to any
appraiser's library but should be on the shelves of
every public library as well. Owners of the book even
have the ability to obtain updates online at no cost -
an especially useful feature in a field where USPAP and
IRS regulations can go through periodic
modifications," said Peter Hastings Falk.
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| Changes in Regulations
Raise the Bar for Appraisers |
Pension Protection Act 2006
requires more of appraisers and of their qualified
appraisals
 Changes in Federal regulations
(Pension Protection Act of 2006) (PPA) require more
stringent qualification requirements for appraisers
doing appraisals for non-cash charitable donation
purposes. In addition, the new regulations require that
such appraisals now be performed in accordance with "generally accepted
valuation standards." See IRS "Guidance Regarding
Appraisal Requirements for Noncash Charitable
Contributions" ( Internal Revenue Bulletin 2006-46 (IRS
Notice 2006-96)) for more information regarding these
changes.
Primarily, what these changes boil down to is
that when you are doing donation appraisals you
need to be qualified to appraise the property in
question; you need to prepare your appraisal in
accordance with USPAP; you need to hold a designation
from a recognized appraisal organization or have other
suitable education and experience; and you must make an
additional declaration within your appraisal
reports. (Note that, while focusing on donation
appraisals, it is possible that these new regulations
will be expanded to also cover all Federally-related
appraisals including appraisals done for estate and gift
tax purposes.) Click on the below link
to read the entire article and to see a sample
declaration which you are free
to customize for use in your own donation
appraisals.
|
Complete Course for Appraisers:
Baltimore,
MD June 13-18, 2008 |
| "Appraising Personal
Property: A Core Course in Valuation Studies Featuring
USPAP" is a unique, all-inclusive course for the
personal property appraiser.
 Developed by veteran
course writer and instructor Dave Maloney, AOA CM in
association with National USPAP Course Certified
Instructor Bill Novotny, ISA AM, Appraising Personal
Property: A Core Course in Valuation Studies Featuring
USPAP is a six-day, on-site, two-part comprehensive
course covering the theory, principles and methodology
that lay the foundation for ethical, complete, reasoned,
and well-communicated value conclusions and appraisal
reports.
Part I of this course is taught by Dave Maloney, AOA CM on days 1 through
4 and makes use of Maloney's 416-page course book, Appraising Personal
Property: Principles and Methodology - 2nd Edition.
In Part I the student will become knowledgeable in the
theory, principles and practices of professional
appraising including terminology, definitions,
approaches to value, scope of work, intended uses of
appraisals, IRS regulations, research techniques, report
writing, sample appraisals and much, much more.
Part II of this course is the 15-hour National
Uniform Standards of Professional Appraisal Practice
(USPAP) course taught by AQB Certified Instructor Bill Novotny, ISA AM, GCA on days
5 and 6. The course is designed to aid personal property
appraisers seeking competency in USPAP and focuses on
the requirements for ethical behavior and competent
performance by appraisers as set forth in
USPAP.
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Date: June 13-18,
2008
(Register by May 9, 2008 to avoid
late fee
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Place: Ramada Inn BWI Airport,
Hanover, MD
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Cost: $900 plus text books
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| Q & A: Is Compliance with
USPAP Required? |
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Compliance with USPAP:
personal property, business valuation and intangible
asset appraisers
 Question: Are
personal property, business valuation and intangible
asset appraisers required to comply with
USPAP?Response: The PREAMBLE
describes the obligation of all appraisers to act
ethically:
The appraiser's
responsibility is to protect the overall public trust
and it is the importance of the role of the appraiser
that places ethical obligations on those who serve in
this capacity. USPAP reflects the current standards of
the appraisal profession.
The PREAMBLE further
states:
USPAP does not establish
who or which assignments must comply. Compliance with
USPAP is required when either the service or the
appraiser is obligated to comply by law or regulation,
or by agreement with the client or intended users.
When not obligated, individuals may still
choose to comply. (Bold added for emphasis.)
Real property appraisers are often legally
bound to comply with USPAP by applicable laws. There
are no such laws binding non-real property appraisers
to comply with USPAP. However, many non-real property
appraisers either choose or agree to comply with USPAP
in their assignments. The decision to comply
may be prompted by affiliation with a professional
appraisal organization or the preference of the
client. (Bold added for emphasis.)
The ETHICS RULE
states:
Compliance with USPAP is
required when either the services or the appraiser is
obligated by law or regulation, or by agreement with
the client or intended users, to comply. In
addition to these requirements, an individual
should comply any time that individual represents that
he or she is performing the service as an appraiser.
(Bold added for emphasis.)
Excerpted from, USPAP 2008-2009
Edition ©The Appraisal Foundation | |
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