Frequently Asked Questions (FAQ)

1. What is an appraisal and an appraiser?
2. What is a Fair Market Value Appraisal?
3. What is a Replacement Value Appraisal?
4. How are appraisal values determined?
5. Should I get an online appraisal or make an appointment for a physical appraisal by making an in-home appointment?
6. Are on-line appraisals sufficient for insurance coverage or tax purposes?
7. What is the turnaround time for an on-line appraisal?
8. How much does an appraisal cost? On-line? In-home?
9. How do I receive my on-line appraisal report?
10. How and when do I pay for my on-line appraisal(s)?
11. What if I don’t have a scanner to send electronic picture files to you?
12. What if I decide to have a physical appraisal done on my residential contents after I have already had an on-line appraisal performed?
13. Is my appraisal confidential?
14. What if I have a matching pair or set of similar items to be appraised?
15. What if I need a complete inventory (physical appraisal) performed on all my personal property?
16. What are the standard appraisal ethics observed by your firm?

What is an appraisal and an appraiser?

The Uniform Standards of Professional Appraisal Practice (USPAP) defines "appraisal" as "the act or process of developing an opinion of value of or pertaining to appraising and related functions such as appraisal practice or appraisal services."

An "appraiser" is defined by USPAP as "one who is expected to perform valuation services competently and in manner that is independent, impartial, and objective."

You may wish to refer to USPAP for official definitions of related terminology such as "Appraisal Consulting," "Appraisal Practice," and "Appraisal Review," among others.

What is a Fair Market Value Appraisal?

"Fair Market Value" is defined in U.S. Treasury Regulation 20.2031-1(b) as follows: "the price at which the property would change hands between a willing buyer and willing seller, neither being under any compulsion to buy or well and both having reasonable knowledge of relevant facts ... in the most common market." Fair Market Value is required to be used for Estate, Probate, Tax Deductible Charitable Gift appraisals, or equitable distribution in divorce matters.

What is a Replacement Value Appraisal?

"Replacement Value" is what it would cost to replace property with something of similar origin, age, quality, condition, or provenance. This type of appraisal is provided strictly for insurance purposes where certain property may be scheduled separately from a blanket homeowner’s policy. Please note that values for certain pieces of fine art, antiques, and silver fluctuate with changing market conditions and require more frequent updates. An industry rule of thumb is to update the appraisal for these items every three to five years.

How are appraisal values determined?

In accordance with the Uniform Standards of Professional Appraisal Practice (USPAP), an appraiser must:

• define the appraisal problem (identify the intended use and users of the appraisal, define the Value(s) to be developed, establish date(s) of Value Opinion(s), identify the subject property(s), identify property rights to be valued, and identify the limited conditions or limitations);
• select and collect data through Market Analysis (relevant market, demand components, supply components, trends, and/or forecasts), Property Analysis (description, origin, age, condition, dimensions and/or creator/manufacturer), and Competitive Analysis (sales, rentals, costs, elements of comparison, and/or units of comparison);
• analyze the highest and best use opinion through the identification of the location of the most relevant market;
• analyze the indicators of Value (collect data, analyze data, and verify where appropriate);
• develop the appropriate approach(es) to the Value (Cost, Income, and/or Sales Comparison);
• reconcile the Value indicators and reach a defined Value Opinion; and, finally,
• report the Opinion(s) of Value(s) as defined.

Should I get an online appraisal or make an appointment for a physical appraisal by making an in-home appointment?

An on-line appraisal can be done from the convenience of your home or office, and avoiding the risk of damage to your articles if you take them to an appraiser. Many items can conveniently be appraised on-line. If you have an entire household of fine art, decorative arts, and collectibles to be appraised, it may be more convenient to make an appointment for an appraiser to come to your home and physically inspect your items National Appraisals has conducted many in-home appointments in the Washington, DC metropolitan and mid-Atlantic area. We will travel anywhere, however; additional travel fees would apply. Please contact us for additional information for in-home appointments.

Are on-line appraisals sufficient for insurance coverage or tax purposes?

Your insurance company or the IRS may require what is referred to as a qualified appraisal. This is an appraisal based on firsthand inspection and in-depth research by a qualified appraiser. Depending on your intended use and the results of your online appraisal, you may wish to arrange for the appraiser to provide a qualified appraisal. A qualified appraisal is generally required by the IRS if the value of your object is over $5000. The level at which insurance companies require a qualified appraisal for itemization on a policy varies from company to company. You should consult with your insurance company and tax advisor for specific details as they apply to you.

What is the turnaround time for an on-line appraisal?

The turnaround time for an appraisal is anywhere from one to 10 days from the time the appraiser has all the required information and images needed to prepare the report. This is a function of the research required for the property and whether you have properly submitted the necessary information and/or photographs necessary to complete the report.

How much does an appraisal cost? On-line? In-home?

Your investment is $35 per item for an on-line appraisal of decorative arts (including furniture) and collectibles and $95 per item for fine art (paintings, prints, sculpture), but matching items part of the same set will be considered as one appraisal. In-home appointments are assessed at the rate of $150 per hour with a 2-hour minimum. Travel fees apply as well.

How do I receive my on-line appraisal report?

You will receive an electronic copy of your report via return email. "Hard" copies are available, however, at an additional cost as outlined in the fee schedule for on-line appraisals.

How and when do I pay for my on-line appraisal(s)?

Payment for an on-line appraisal is required at the time of request. Payment may be made via secure on-line credit card payment, or you may mail a personal check or money order. Please be advised, however, that your appraisal report will be delayed until your payment has been received and cleared by the bank. Therefore, secure on-line credit card payment is desirable for expediency purposes.

What if I don’t have a scanner to send electronic picture files to you?

If you have absolutely no way of uploading images you may mail your photos to us and we will scan and upload them for you. Indicate this intent while completing your appraisal request along with a separate e-mail expressing your intent.

What if I decide to have a physical appraisal done on my residential contents after I have already had an on-line appraisal performed?

If you require a physical, in-home appraisal after the initial online appraisal you will then have the option of requesting this from us at our customary hourly fee. Your on-line appraisal fee will be applied (deducted) from the cost of this appraisal.

Is my appraisal confidential?

Yes. Only the appraiser or consulting appraiser has access to your appraisal report, unless you request that we forward the report to your insurance company, estate lawyer, or third party of your discretion. The Uniform Standards of Professional Appraisal Practice (USPAP) dictate that:

• an appraiser must protect the confidential nature of the appraiser-client relationship;
• an appraiser must act in good faith with regard to the legitimate interests of the client in the use of confidential information and in the communication of assignment results; and
• an appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and persons specifically authorized by the client; state enforcement agencies and such third parties as may be authorized by due process of law; and a duly authorized professional peer review committee.

What if I have a matching pair or set of similar items to be appraised?

A matching pair or set of matching items will be considered as one appraisal request.

What if I need a complete inventory (physical appraisal) performed on all my personal property?

We will appraise as many items on-line as you wish to submit. However, it may be more cost effective to make an appointment for an on-site inspection of your personal property, fine art, decorative arts, and collectibles. You should also check with your insurance company to see what they require, if applicable.

What are the standard appraisal ethics observed by your firm?

The Appraisal Standards Board (ASB) of The Appraisal Foundation develops, publishes, interprets, and amends the Uniform Standards of Professional Appraisal Practice (USPAP) on behalf of appraisers and users of appraisal services. You can be assured our professional appraisals comply with all standards and codes of ethics of the American Society of Appraisers and USPAP.