Make the following updates to your copy of the 2nd Edition of Appraising Personal Property: Principles and Methodology

You can print out an MSWord2003 booklet containing all the below improvements here in one place. You can make the minor edits by hand. For the more substantial changes, you can either cut and tape the changes into your book, or highlight the location of the changes in your book and reference this booklet.

Notes:

1.) Lesson 7 (USPAP) of the 1st and 2nd editions of Appraising Personal Property: Principles and Methodology (APPPM) has been expanded into a 76-page book entitled The Personal Property Appraiser's Guide to USPAP. It is available for preview and purchase here. Lesson 7 of future editions of APPPM will incorporate this expanded discussion.

2.) Lesson 13 Legal Issues Affecting the Appraiser has been added. Download Lesson 13 (.pdf)

Reference is made throughout the book to "transmittal letter" and "cover document". In the interest of clarifying confusion surrounding the use of those two terms as well as the use of the term "cover letter", please refer to this change.
Page 7. (Expand discussion of "appraisal".) Make this change. (Posted 10-21-08)
Page 7. (Add definition of "Report" and discussion of oral appraisal reports. Deleted section entitled "verbal approximation of value" from pages 24-25.) Make this change. (Posted 3-29-09)
Page 8. (Repeat Lesson 7 statement that personal property appraisers need not be licensed/certified by the state.) Make this change. (Posted 5-9-08)
Page 8. Change 1.b. to "The cost to manufacture or acquire a new suitable replacement item (known as the cost approach to valuation), or" (Posted 8-3-09)
Page 11. (Add the term "fixtures" to the description of personal property.) Make this change. (Posted 10-20-08)
Page 13. (Addition of time frame for comparable sales.) Make this change. (Posted 5-9-08)
Page 17. Toward bottom of page change "CREDIBLE: Worth of belief." to "CREDIBLE: Worthy of belief."
Page 18. (Expand the discussion of "value"). Make this change. (Posted 10-18-08)
Page 19. (Expand discussion on "cost and price"). Make this change. (Posted 10-18-08)
Page 22. (Added definition of "jurisdictional exception".) Make this change. (Posted 10-27-08)
Page 22. (Expanded discussion on "objectives".) Make this change (Posted 10-27-08)
Page 22. (Added definition of "assumptions") Make this change. (Posted 10-18-08)
Page 22 and 23. (Expanded definition of "Market" in include discussions of "market levels" and "levels of trade.) Make this change. (Posted 1-30-09)
Pages 24-25. Delete the section entitled "Verbal Approximation of Value." (Posted 3-29-09)
Pages 25, 26, 28: (Add new Step 5. Renumber Steps 5 and 6). Make these (2) changes. (Posted 8-26-09)
Page 29: (Modify Lesson introduction.) Make this change. (Posted 8-18-08)
Pages 38 - 40. (Expand discussion of exposure time and marketing time.) Make this change. (Posted 11-13-08)
Page 39: (Add "present value" bullet item.) On the bottom third of the page, add the following sub-bulleted item to the last three bulleted categories "Client sale of acquisition," "Equitable distribution and property transfer," "and "Litigation and dispute resolution"

Present value (for investment property

Page 40. (Reword introduction to value types.) Make this change. (Posted 11-14-08)
Page 41: (Expand discussion of importance of market value.) Make this change. (Posted 10-19-08. Reposted 7-4-09)
Page 41: (Add section regarding definition of market value.) Make this change. (Posted 7-5-09)
Page 42: (Added discussion of fundamental market value conditions.) Make this change. (Posted 10-20-08)
Pge 43: (Expand discussion of Non-market value definitions.) Make this change. (Posted 7-5-09)
Pages 43 - 44: (Edit discussion of value types resulting from atypical market conditions.) Make this change. (Posted 11-28-08)
Page 44: (Expanded discussion of "Measuring Value.") Make this change. (Posted 10-14-08)
Pages 48-49: (edited description of Anselmo v. Commissioner.) Make this change. (Posted 2-25-09)
Pages 55 - 58: (Replace section due to new DOD Full Replacement Value Act) Make this change. (Posted 10-17-08)
Page 68: (Edit the discussion of "present value" to "investment value"; move its location.) Make this change. (Posted 10-18-08). (Note that in the 3rd edition of this book, this section will be moved to what is now Page 58 in the 2nd edition. If you wish, you can move this section there now by placing this change on Page 58 just before the section entitled “Loss-of-value”.
Page 69. Change fourth paragraph to read "Present worth calculations are associated with the income approach to value — an approach seldom used by the personal property appraiser. It is an approach to value more often used by the business valuator. (See section entitled “Income Approach” in Lesson 3 for further discussion.)" (Posted 5-11-08)
Pages 71 - 73. (Rewrite of the Scope of Work section to enhance discussion.) Make this change. (Posted 10-25-08)
Page 76. (Add description of desktop opinions.) Make this change. (Posted 11-10-08)
Page 77. (Expand discussion of "objective of an appraisal.") Make this change. (Posted 10-30-08)
Page 79. (Expand the discussion of "intended use of an appraisal.") Make this change. (Posted 10-30-08)
Page 80. (Expand the discussion of "ownership rights.") Make this change. (Posted 10-31-08)
Pages 80 - 82: (Expand discussion of "property rights".) Make this change. (Posted 10-31-08)
Pages 92 - 93. (Expand/reorganize discussion of "cost approach.") Make this change. (Posted 11-2-08)
Page 95. (Add present worth formula example.) Make this change. (Posted 5-9-08)
Page 96. (Amend the discussion of exposure time.) Make this change. (Posted 11-5-08)
Page 100. Change first sentence in fourth paragraph to read "Describe in detail all preexisting damages or lack thereof whether or not acknowledged as such by the shipper." (Posted 5-10-08)
Page 116. (Enhance discussion of fair market value.) Make this change. (Posted 11-16-08)
Pages 124, 125, 128, 291, 341. (Addition of improved sample Declaration of Appraiser to comply with Pension Protection Act 2006; minor edits to accommodate this change and improve text structure.) Make these changes. (Posted 3-21-08)
Page 133. Change the first sentence in the section entitled "Certification of Appraiser" to read: "Section B, Part III of Form 8283 (The Certification of Appraiser) must be completed and signed by a qualified appraiser." (Posted 5-11-08)
Page 134. (Recent revision to IRS Form 2828 instructions.) In section entitled "IRS Form 8282" change "two years" to "three years" and "two-year" to "three-year". (Posted 3-24-09)
Page 135. (Expand discussion of death taxes and unified credit.) Make this change. (Posted 11-9-08)
Page 142. (Amend discussion of gift tax reporting.) Change the second paragraph from the top to the following: (Posted 11-18-08)
"The gift tax return (IRS Form 709) is to be filed by the donor if the gift exceeds $12,000 per year per person. While a gift tax return must be filed, as noted above, gift taxes are seldom paid as the taxpayer normally chooses to apply the amount of the gift in excess of the $12,000 per person annual exclusion against his or her unified credit exemption which, for 2009, is $3.5M."
Pages 142 and 143. (Expanded discussion of Bankruptcy Appraisals.) Make this change. (Posted Posted 7-10-09)
Page 144. Change third paragraph from the bottom to read "Formulas are available for calculating the present worth of an investment property. Typically, it is accountants and business valuators who prepare this type of appraisal as opposed to the personal property appraiser. (See section entitled “Income Approach” in Lesson 3 for further discussion.)" (Posted 5-12-08)
Page 145. (Enhanced discussion of liquidation appraisals.) Make this change. (Posted 11-9-08)
page 146. (Reworded multi-market, multi-value appraisal discussion.) Make this change. (Posted 11-10-08)
Page 147. (Reword "State Inheritance and State Estate Taxes" section.) Make this change. (Posted 11-9-08)
Pages 147 - 148. (Edit wording regarding litigation appraisals and related services.) Make this change. (Posted 11-9-08)
Pages 148 - 149. (Improve section entitled "Ad Valorem Property Tax Appraisals") Make this change. (Posted 5-15-08)
Page 149. (Add a discussion of collateralized loan appraisals.) Make this change. (Posted 11-10-08)
Page 151. (Add a discussion of Interaction Effects.) Make this change. (Posted 2-2-09)
Page 151. In the center of the page to the list of "Other external factors that might impact on the value..." add "Marketability". (Posted 5-11-08)
Page 152. (Add a discussion on identifying value characteristics affecting value.) Make this change. (Posted 12-05-08)
Page 154. At the end of the first paragraph in the section entitled "Age-Life Depreciation" add the following sentence "Age-life depreciation is not impacted by obsolescence — only by the property's age and condition (which is usually assumed to be average.)" (Posted 5-12-08)
Pages 166-167. (Expand discussion of "Contingent Appraisals") Make this change. (Posted 6-16-09)
Page 172. Add this bulleted item to the center of the page: "• All major appraisal societies permit the appropriate use of photographs as the appraisal assignment warrants." (Posted 5-12-08)
Pages 179 - 182. (Expand the discussion of valuation discounts, fractional interest discount, blockage.) Make this change. (Posted 11-26-08)
Page 184. At mid-page add this one sentence paragraph just prior to the paragraph which begins "Failure to understand...": "The intended use of the appraisal report will contribute to the appraiser’s choice of markets to explore. For example, donation appraisals will require the “most common” market whereas an insurance appraisal will make use of the insured's customary retail market." (Posted 5-12-08)
Pages 183, 187 and 188. (Expanded the discussion and added three principles: Principle of Qualitative Ranking, Principle of Contribution, Principle of Identification.) Make these changes. (Posted 3-21-08)
Page 190. (Expand discussion of highest and best use.) Make this change. (Posted 12-14-08)
Page 202. (Expand discussion of Terms of Use.) Make this change. (Posted 12-15-08)
Page 225. (Modifies appraiser's basis for accepting work by others. Required by change to 2008-2009 USPAP). Make this change. (Posted 6-10-08)
Pages 240, 241. (Expands discussion of USPAP and Ethics.) Make this change. (Posted 1-27-09)
Page 241. (Expands discussion of an appraiser as a fiduciary.) Make this change. (Posted 1-26-09)
Page 250. (Expand discussion of misrepresentation.) Make this change. (Posted 1-27-09)
Page 250. (Expand discussion of referal fees and finder's fees.) Make this change. (Posted 6-16-09)
Page 256. (Add discussion on learning to describe.) Make this change. (Posted 1-11-09)
Page 263. (Add discussion of how to describe measurements.) Make this change. (Posted 2-13-09)
Page 264 through 267. (Expand discussion of Research) Make this change. (Posted 1-30-09)
Pages 277 through 279. (Expand discussion of When More Than One Appraiser is Involved) Make this change. (Posted 8-20-09)
Pages 281 to 291. (This section regarding report writing and the three report options was reorganized, discussions were expanded, and several minor edits were made for clarification purposes.) Substitute these pages for pages 281 through the middle of page 291 just before the section entitled "Optional content for all appraisals." (Posted 2-16-09)
Page 291. See above "Pages 124, 125, 128, 291, 341"
Page 293. (Expands the discussion of "narrative" reports vs. "form" reports) Change the first two paragraphs under the section entitled "Appraisal Report Structure" to this. (Posted 7-7-08; Updated 9-27-08)
Page 293. Change the bulleted item "Definition of value and its citation" to the following:" • Definition of value and its citation (include disclosure and discussion of exposure time if necessary for intended users to understand the report)" (Posted 5-13-08)
Page 294. Change para 2. to read:
- 2. Item-specific information is that information which pertains specifically and solely to the individual items being appraised (as opposed to the overall appraisal assignment.) Item-specific information might be contained within the transmittal letter (e.g., in an assignment which has only a single item of property being appraised.) In assignments containing numerous items being appraised, item-specific information is most commonly contained within a separate Valuations Section of the report which would immediately follow the transmittal letter. Included in item-specific information are:
Page 294. Add these bulleted items to the end of section #1, the list of appraisal-specific information (Posted 7-6-08):
• For donation appraisals, a declaration of the appraiser's qualifications
• For donation appraisals, a statement acknowledging potential liability in cases of gross misstatement of value
Page 294. Add this bulleted item to section #2, the list of of item-specific information:
• Significant personal property appraisal assistance provided by others (Posted 5-13-08)
Page 294. (Discussion of the difference between cover letter, transmittal letter, and cover document) Add this section near the bottom of the page immediately prior to the section entitled "Sample Appraisal Report Wording" (Posted 7-6-08)
Page 314. (Adds discussion of electronic transmitted appraisal reports and provides a sample declarative statement regarding use of electronic reports.) Make these changes. (Posted 3-28-08; Updated 12-27-08)
Page 323. (Improved log sheet by addition of intended use and assignment conditions.) Substitute this form. (Posted 11-15-08)
Pages 341. See above "Pages 124, 125, 128, 291, 341"
Page 346. (Add Appendix M.1 Sample appraisal for replacement value insurance coverage.) Make this change. (Posted 1-5-09)
Page 381. (Clarifies the use of the cost approach for certain items of appreciable property.) Make this change. (Posted 6-18-08)
Page 386. (Expand definition of "market value") Replace definition of "Market Value" with this change. (Posted 7-4-09)
Page 393. (Replaced definition of Value Ranking.) Make this change. (Posted 2-22-09)