What Should A Professional Personal Property Appraisal Look Like?
There are seventeen official parts to a complete professional appraisal document. USPAP (Uniform Standards of Professional Appraisal Practice) also requires a signed certification that assures the appraiser has adhered to the competency, ethics, confidentiality, and record keeping standards set forth by The Appraisal Foundation. The American Society of Appraisers also provides information on USPAP standards. A Professional Appraisal Report for Personal Property must include:
- A complete description of each item (including condition, age, style, form, dimensions, maker’s marks, inscriptions, materials, and other information), photographs, provenance (history of the object), other documentation, the facts on which the appraisal were based i. e. the approach to value that was used, market sales found and the market analysis of the sales.
- A photograph of the object if required for identification purposes or IRS requirements.
- All items described in the context of the general market.
- A section that describes the conditions of the assignment.
An appraisal document used to be considered qualified as long as it included a description of the method of valuation used to determine fair market value, but not anymore.
In the new definition, an appraisal document must be prepared by a qualified appraiser, and must be prepared in accordance with generally accepted appraisal standards.
These rigorous standards, contained in a 232 page document subject to revision every two years, are known to appraisers as Uniform Standards of Professional Appraisal Practice (USPAP). All professional appraisers must pass an examination on USPAP every five years and certify in every report that they adhere to USPAP regulations in their practice.