A Really Scary Halloween Story

Kirsten RabeSmolensky,
JD, ISA CAPP

Recent question:
Does my report meet USPAP requirements and the ISA report writing standards? I copied the template in the Core Course manual.

Response:
One of the scariest creatures that I have ever met is the dreaded TEMPLATE MONSTER!! She sneaks into appraisers' templates, making little changes or gnawing at key words necessary for one appraisal and not another, ultimately making items from the ISA checklist disappear. She appears in an appraisal report in the form of unclosed parentheses (example below), or in useless paragraphs that have no particular relevance to the report at hand. Worst of all, she makes appraisers think that they do not need to use their brains! Oh my!! And, while the template monster can sometimes just take a nibble out of your report, sometimes she bites REALLY HARD and leaves big gashes in your USPAP compliance, appraisal methodology, or justified reasoning. OUCH!!

Even if you are using a template that meets USPAP and ISA report writing standards, you need to edit it for EVERY report EVERY time. Each appraisal report is unique, and no two reports should ever be exactly the same. Even with a really good template, you should know that every appraisal report you write will have different requirements. That is why there is a list of items on the ISA checklist that only apply "if applicable." USPAP clearly states that an appraiser must "perform the scope of work necessary to develop credible assignment results." The scope of work will differ for every appraisal report. Therefore, an appraiser needs to understand what they are doing and adjust any template accordingly. Borrowing a template will not guarantee that you are doing a report correctly. This is a common misconception. Instead, as one of my favorite high school teachers used to say, "You need to put on your thinking cap!" This is particularly true when writing your market analysis, choosing your effective date, listing the intended users of the report, etc.

"What were you thinking?"

And for goodness' sake, when copying the USPAP certification statement, PLEASE remove the parentheses. The appraiser needs to make a choice. The sample certification statement provided in Standard 8 of USPAP is an excellent place to start and ISA suggests that you copy it word for word into your templates. BUT THEN, you need to edit it. For example, USPAP Standards Rule 8-3 reads in part:

I have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties involved.

I have performed no (or the specified) services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 

You need to either take out the language in the parentheses or explain what your interest was. Did you previously appraise the items for an estate and now you are doing an insurance appraisal of certain items for one of the heirs? Did sell the item to your client two years ago and now you are doing an insurance appraisal? Is the client a friend? Have you discussed with the client the possibility of selling this item at your auction house? If so, then you need to disclose that information in your USPAP certification statement, and this is the perfect place to do it. Change that template!

So this Halloween, make every effort to bust those monsters and ghosts.

Helpful Hints for Avoiding the Template Monster:

1. Create one good template for every intended use you regularly do. If you add a new intended use to your repertoire, then save a copy as a template.
2. Highlight, italicize, or bold all parts of the template that should be revised for every appraisal. This includes your paragraph on market analysis. In fact, instead of having any language there you might just have a paragraph that reads "INSERT MARKET ANALYSIS."
3. After you complete the appraisal report, make sure that you set it aside for a day or two (or at least overnight) and then give it a fresh read from start to finish before you send it out. It is horribly embarrassing (and scary) to send out a report where you fail to edit your template.

Now, go get that template monster!!

Happy Halloween from all of us at ISA!

- Kirsten Rabe Smolensky, JD, ISA CAPP

Determining Value

Tim Luke, ISA AM, CAI, BAS, MPPA

An essential aspect of our valuation services and specifically in our appraisal practice is determining value. The Uniform Standards of Professional Appraisal Practice (USPAP) provides guidance in the form of a definition of value and a comment as follows, "Value: the monetary relationship between properties and those who buy, sell or use those properties. Comment: Value expresses an economic concept. As such, it is never a fact but always an opinion of the worth of a property at a given time in accordance with a specific definition of value. In appraisal practice, value must be qualified - for example, market value, liquidation value, or investment value."

This one definition is brimming with information and guidance in determining value, so let's take a look at the various elements of the definition. Looking at the first part of the definition, it states, "the monetary relationship between properties..." This means comparing the subject property with comparable items of like kind and quality. It is important to remember when comparing the subject property with comparable items, consideration of all physical characteristics and overall condition must be taken into account to establish a good relationship between the properties. This correlation between the various comparable items with the subject property helps to justify a value conclusion. If similar items under similar conditions are selling for X dollars, than it is reasonable to assume the subject property would sell for X dollars, supporting the value conclusion.

Continuing with the definition, "and those who buy, sell or use those properties." We take into consideration the context of the subject property and comparable properties. Does the subject property possess a certain provenance making it more desirable than other similar items? Is the subject property a rare example? Or was the subject property was mass-produced? This context provides a foundation for understanding the piece and its significance or lack thereof in the marketplace and will provide guidance in determining value. It is our job to understand if buyers are actively seeking out these properties and paying a premium, suggesting an uptick in the marketplace, or if the opposite is true, where there is a large supply and little demand, indicating declining value.

Take Victorian furniture for example. Knowing that the marketplace is inundated with pieces, causing a large supply coupled with a decrease in demand for such items, the values generally go down. However, each piece in an appraisal assignment is evaluated on its own to determine the monetary relationship between the subject property and comparable items to determine the qualified value.

The Comment after the value definition states value is never a fact because it is an economic concept based on an opinion as of a specific point in time in accordance with a specific value definition and must be qualified. The economic concept represents our value conclusion and is an opinion based on research of comparable items in the marketplace as of a specific point in time, taking into consideration the requirements of the value definition for the assignment. Our value opinions are qualified to indicate fair market value, retail replacement value, or other value depending on the assignment. These opinions are established at one point in time and are not to be used at any other point in time or for another qualified value.

In dealing with personal property, remember the various levels of trade for the huge variety of items you will be appraising. These levels include but are not limited to auctions, galleries, retail outlets, flea markets, consignment, garage sales, or the like. They will produce a variety of sales results and depending on the problem you are solving for your client, the selection of the proper marketplace is paramount in order to determine value and provide credible assignment results for your client.

- Tim Luke, ISA AM, CAI, BAS, MPPA has 28 years of experience in the auction and appraisal industry, and is currently the Executive Vice President, Senior Appraiser for Gurr Johns, Inc. based in Florida. He travels the United States doing appraisals, valuations, and brokerage for clients.

USPAP Advisory Opinion 21: Valuation Services and Appraisal Practice

Meredith Meuwly, ISA CAPP
Director of Education

Your education team and I wanted to share some examples on how USPAP Advisory Opinion 21 applies to your business as you perform appraisals and valuation services. The examples below are taken from the USPAP FAQs, amended to relate to personal property appraisers, and explained how they affect you.

Example 1

Robert Agent is an individual who provides both brokerage and appraisal services. What are Robert’s obligations under USPAP when preparing a broker’s price opinion (BPO)?

Answer: USPAP provides flexibility for brokers/appraisers and others who have multiple professional roles.

If providing the service as an agent or broker, USPAP requires only that an appraiser must not misrepresent his or her role. In other words, if Robert was contacted by his client because he is an art consultant or broker and signing his report as a consultant or broker, then Robert need not comply with USPAP except to not misrepresent his role. If Robert is contacted by the client because he is known as an appraiser and is signing his report as an appraiser, then USPAP applies.

What does this mean for an ISA personal property appraiser?
Many ISA members wear multiple hats. You might be an art advisor, antique store owner, fine art gallery manager, estate sale person, auction house representative, broker, etc. The most important thing is that you let the client know up front what services you offer and how the services differ from one another. Once a client chooses a service, make it clear which hat you are wearing for that particular assignment. For example, if you offer art advisory services a client might hire you to advise them on what pieces of art to purchase for their collection. This assignment might involve market research, a suggested purchase price or price range for a particular item, negotiating a deal to purchase a piece of art, etc. In your role as an art advisor USPAP would not apply, except you could not misrepresent your role. However, if after purchasing the art the client then wants you to write an appraisal for insurance coverage you are undertaking a new assignment as an appraiser writing an appraisal. For this assignment, you must follow USPAP.

Example 2

Marie Vaughn has a diverse practice with a specialization in litigation services. She commonly aids attorneys in developing cross-examination strategies for expert witness testimony from appraisers. How does USPAP apply to Marie’s "litigation services?"

Answer: In order to determine Marie’s obligation, it is necessary to understand the nature of her role. If she is acting as an appraiser, her litigation services are part of appraisal practice. The PREAMBLE, the DEFINITIONS, the ETHICS RULE, the COMPETENCY RULE, and the JURISDICTIONAL EXCEPTION RULE will apply to the assignment. As an appraiser, Marie cannot act as an advocate for any party or issue.

If Marie’s services include providing an opinion of value, she must also comply with the appropriate appraisal standards (STANDARDS 7 and 8). If Marie’s services include providing an opinion about the quality of another appraiser’s work, the appraisal review requirements of STANDARDS 3 and 4 apply. If the service includes providing analysis, recommendation, or an opinion to solve a problem where an opinion of value is a component of the analysis leading to the assignment results, then Marie must comply with the ETHICS RULE, the COMPETENCY RULE and the JURISDICTIONAL EXCEPTION RULE for the entire assignment; and she must also comply with any applicable Rules and Standards if she performs an appraisal or appraisal review as part of the assignment.

On the other hand, if Marie provides litigation services as an advocate, then she is providing a valuation service outside of appraisal practice. When performing services outside of appraisal practice, Marie can act as an advocate and accept contingent compensation. The only USPAP obligation is that she not misrepresent her role. She must use care to distinguish her role from other roles that would carry an expectation of being impartial, objective, and independent, i.e., acting as an appraiser.

Marie may provide litigation services by either acting as an appraiser or acting as an advocate for the client’s cause; however, she must not perform both roles in the same case.

Plain English Please?
Sometimes, in the course of litigation, a judge will order an appraisal be performed of personal property. If you have been asked to provide an appraisal for litigation, then you must follow USPAP, specifically Standard Rules 7 & 8. Why? Because where the law requires an "appraisal" be done (for example, most states will require an "appraisal" by statute for probate), then you must act as an appraiser and follow USPAP. If you have been asked to review another appraiser’s appraisal report as an expert witness and submit that report in writing, you are also acting as an appraiser (See USPAP Standard Rules 3 & 4, the rules for Appraisal Review).

When acting as an appraiser, in either an appraisal or an appraisal review, you must maintain your neutrality. Being neutral does not mean that you cannot point out the flaws in another appraiser's report; in fact, that was what you were hired to do. Instead, it means that you must do so in a neutral and factual manner. If the other appraiser did not follow USPAP and claimed to do so in his or her report, simply state that. And, state how the failure to follow USPAP led to either flawed value conclusions or perhaps shows a lack of professionalism. Similarly, if providing values (i.e., an appraisal under Standard Rules 7 & 8), you can also remain neutral. One way to check yourself is to ask whether your final value conclusions would be different if you were working for the "other side." If your answer is no, then you are maintaining your neutrality.

Generally, if giving testimony or providing a written appraisal report that will be admitted into evidence, you should act as an appraiser and maintain your neutrality. First, expert witnesses are expected to be neutral. Of course, this does not always happen. But if the jury suspects an expert is acting as an advocate, their opinion will quickly be dismissed. Second, if a judge determines that the expert is acting as an "advocate" or "hired gun," the expert’s testimony will likely be disqualified. Finally, as an appraiser, and particularly as an expert witness, you have a reputation to protect. Every bit of testimony and every report that goes into a court can become part of the public record and available for anyone to see. That means when you get back on the stand in another case three years later, you should not be surprised if you are cross-examined on opinions that you gave in an earlier case. You cannot "flip" your opinion without good cause. The best way to do this is to remain neutral.

So, when would you be an advocate in litigation? In most instances you might act as an advocate (and NOT an appraiser) when you are acting behind the scenes and providing litigation services. For example, a law firm might hire you to give it opinions about an appraisal report, but not ask you to serve as an expert witness. An attorney might hire you to explain appraisal methodology to him or her and help draft cross-examination questions for an appraiser. Or, you might be hired to help one side develop a strategy for success in a complex case where the appraisal methodology might be particularly complicated. In these situations, you can act as an advocate. And, when acting as an advocate you CANNOT act as an appraiser because then you are not maintaining your neutrality.

Example 3

Chris Filo is an art appraiser and advisor who has an assignment to advise a client regarding a potential art purchase. The client has provided Chris with an asking price for the work. Chris has made the extraordinary assumption that the value provided is credible and will use that value as part of the analysis before making final recommendations. Which parts of USPAP apply to this assignment?

Answer: Chris must comply with the ETHICS RULE, the COMPETENCY RULE, and the JURISDICTIONAL EXCEPTION RULE for this assignment.

Because this assignment does not include an appraisal or appraisal review, neither the SCOPE OF WORK RULE nor the RECORD KEEPING RULE applies. In addition, there are no development or reporting standards applicable to this assignment.

What’s the message here?
Remember that if you are acting an appraiser and providing appraisal services (i.e. a valuation analysis without a full appraisal report), then you are still subject to the USPAP ETHICS RULE, the COMPETENCY RULE, and the JURISDICTIONAL EXCEPTION RULE. If you are an advisor and providing valuation services, then you must not misrepresent yourself.

Example 4

Jane Doe is an antique dealer who offers a variety of professional sales and advisory services to her clients. She is an antique dealer, consultant, authenticator, advisor, and is also a certified appraiser. Jane has been asked by a client to perform a service that is viewed by Jane and her client as a consulting service that relates to value, but is to be undertaken by her in the role of a broker/consultant, not as an appraiser. Which parts of USPAP apply to Jane in this assignment?

Answer: Individuals may fulfill different roles in different assignments. In general, USPAP applies only when an individual is acting as an appraiser. As long as it is clear that Jane is not performing as an appraiser, Jane’s only obligation when acting as a broker/consultant is stated in Conduct section of the ETHICS RULE, which states,


"An appraiser must not misrepresent his or her role when providing valuation services that are outside of appraisal practice."

What’s the take-home?
Remember that the "main purposes of USPAP are to protect the public and to promote public trust in the appraisal profession." This means that you must:

1. Make it clear up-front which hat you are wearing.
2. If you switch hats mid assignment, then it is a new assignment.
3. Properly advertise your services. If you currently advertise only as an appraiser, but perform other services, you should change how you are advertising your services. Why? Because if you advertise only as an appraiser, the public is calling you as an appraiser. If you then try to "switch hats," you will be misrepresenting yourself.

Meredith Meuwly, ISA CAPP,

Filling in the Gaps with USPAP's Competency Rule

Steve Roach, JD, ISA CAPP

"Whatever the medium, there is the difficulty, challenge, fascination and often productive clumsiness of learning a new method: the wonderful puzzles and problems of translating with new materials." - Helen Frankenthaler

After doing something for a while, it's easy to get into a comfort zone that can be hard to leave. It is even easy to forget that as appraisers we enjoy one of the most interesting professions around, with each day providing the possibility for a new client, a new challenge and a new area to learn.

Saint Jerome as Scholar, 
El Greco, c. 1610
(Metropolitan Museum of Art)

Several years ago, I decided to become certified by The Appraisal Foundation to teach the 7-hour and 15-hour Uniform Standards of Professional Appraisal Practice courses. USPAP provides a solid framework for ethical, competent appraisals and I wanted to demystify USPAP and help students see how the principles and guidelines of USPAP could enhance their appraisal practice. As some have told me, making USPAP interesting while teaching is more of a challenge than learning USPAP in the first place, and I keep that in mind.

My favorite rule of USPAP (yes, I have a favorite USPAP rule) is the Competency Rule which states, "An appraiser must: (1) be competent to perform the assignment; (2) acquire the necessary competency to perform the assignment; or (3) decline or withdraw from the assignment. In all cases, the appraiser must perform competently when completing the assignment."

USPAP's Competency Rule requires that an appraiser both identify the problem to be addressed and to have the knowledge and experience to complete the assignment competently.

However, USPAP also provides for "on-the-job learning" if the appraiser follows these steps: First, they must disclose the lack of knowledge and/or experience to the client before accepting the assignment or, at the point during the appraisal process when an appraiser realizes a lack of knowledge or experience. Second, an appraiser must take all steps necessary or appropriate to complete the assignment competently and finally, the appraiser must describe in the report the lack of knowledge and/or experience and the steps taken to complete the assignment competently.

As a USPAP comment clarifies, "Competency can be acquired in various ways, including, but not limited to, personal study by the appraiser, association with an appraiser reasonably believed to have the necessary knowledge and/or experience, or retention of others who possess the necessary knowledge and/or experience."'

What happens if you cannot acquire the necessary competency to complete the assignment and deliver credible results? You must decline or withdraw from the assignment.

Over the last year, I taught my first 7-hour and 15-hour USPAP courses for ISA and worked with Meredith Meuwly, ISA CAPP, and Cathy Peters, ISA CAPP, to prepare to teach the ISA Fine Art course.

Teaching provides a meaningful way for me to connect with other ISA members, but also helps strengthen my own skill set. I was so nervous the night before the first USPAP class I taught online that I couldn’t sleep! Would I be able to connect with students that I couldn’t see? How would the online platform interact with my PowerPoint? How could I facilitate student engagement to help students build their own skill sets with a 7-hour USPAP update course that most see as a chore? How could I add value to the course so that even experienced appraisers could feel like participating the class was worthwhile? In other words, I looked at how I could acquire competency to teach USPAP in a credible manner and came up with a plan to tackle the challenge.

The Competency Rule in USPAP provides guidance for appraisals, but it goes further than that, reminding us all that learning is an ongoing process and that with a plan, you can acquire the competency needed to handle challenges that might be thrown at you.

Stepping outside of your comfort zone is a challenge. As Frankenthaler said in the opening quote, there’s a clumsiness that’s inherent in trying new things. But there are also “wonderful puzzles” that make the effort rewarding and worth it.

Steve Roach, JD, ISA CAPP, is an appraiser and an instructor for both the 7-hour and 15-hour USPAP courses.

ISA offers online and in-person USPAP courses throughout the year. See the full educational calendar for 2018.

Ask an Instructor: Office Hours and Appraising Experience

ISA members are invited to send in their questions on all things appraising and education to ISA's instructors. One of ISA's instructors will share answers on the ISA Now Blog. Please send questions to directorofeducation@isa-appraisers.org.


Question: When is the next Office Hours webinar?

Answer: The next Office Hours with the Director of Education will be held on December 5th at 2pm CST. It’s a free webinar open to all ISA members for a lively question and answer session on the topics of your choice. Mark your calendar now!

Question: I’m having a little bit of trouble obtaining my 700 USPAP-compliant hours to reach the ISA Accredited Member (AM) level. Any suggestions for ways to gain more appraisal-specific experience hours?

Answer: Yes! I can certainly help. There are lots of ways for you to gain qualified hours. Remember that the hours must be towards the development and report of a USPAP-compliant appraisal. Thus, the hours can be your actual time spent performing the appraisal, both billable hours and non-billable (gratis) hours. Contact me today at directorofeducation@isa-appraisers.org to discuss a plan of action that would work best for you

- Meredith Meuwly, ISA CAPP
Director of Education

Signing Your Appraisal Report

Meredith Meuwly, ISA CAPP

I was recently asked about where you should sign your appraisal report. It may seem like a silly question, but it’s actually not. Although USPAP does not dictate the form, format, or style of how to prepare an appraisal report, it is very specific in that the written appraisal report must include a signed certification statement. See USPAP 2016-2017 Edition Standards Rule 8-2(a)(xii) for Appraisal Reports and Standards Rule 8-2(b)(xii) for Restricted Appraisal Reports, which each state, “include a signed certification in accordance with Standards Rule 8-3.”

The ISA Appraisal Report Writing Standards states that “the appraisal must contain the appraiser’s signature plus the signatures of non-dissenting collaborating appraisers, if any.” See Lesson 17-4 in your Core Course manual, revised April 2016 edition. Thus, USPAP requires the certification statement be signed, and ISA requires that the appraisal report be signed. Thus, “where do you sign your appraisal report?” becomes a really good question.

The answer is one of two ways:

1. Include the certification statement in the Cover document of your appraisal report as a separate page with its own signature. Then you can continue writing and sign the report again.
   OR
2. Include the certification statement at the very end of the Cover document and sign immediately thereafter, so that you have a signed certification. There is no need to sign the report again.

The key point to remember is that you cannot have other text after the certification and then sign the Cover document. You need to be sure to sign the certification statement. With this information in mind, most appraisers choose option 2, as it kills two birds with one stone by allowing them to sign the appraisal once, right after the certification statement.

And let’s not forget that USPAP also specifies in Standards Rule 8-3 that “An appraiser who signs any part of the appraisal report, including a letter of transmittal, must also sign this certification.” As such, anyone signing the report must also sign the certification statement, whether that is in one place or two places in the Cover document.

As the requests for charitable donation and other types of appraisals are likely to increase as we near the year’s end, now is a great time to review your appraisal formats to make sure you are signing your appraisal report in the right place.

For questions and/or concerns, please do not hesitate to contact me at directorofeducation@isa-appraisers.org.

Meredith Meuwly, ISA CAPP

Director of Education

Ask an Instructor: Updated USPAP Standards and Webinars

ISA members are invited to send in their questions on all things appraising and education to ISA's instructors. One of ISA's instructors will share answers on the ISA Now Blog. Please send questions to directorofeducation@isa-appraisers.org.


Question: To which USPAP standards do I write if I start an assignment in the Fall of 2017, but my final report is completed in January 2018?

Answer: Thanks for asking a great question. This is a very common question we instructors receive every fall/winter when the USPAP standards change. Even if your assignment starts in 2017, even if your effective date is in 2017, and even if your inspection date is in 2017, if the issue date of your report is in 2018, then you must write to the 2018-2019 USPAP standards. You are responsible for knowing and abiding by all of the 2018-2019 standards as of January 1, 2018, regardless if you have taken the USPAP update course or not and regardless if you have in hand the current manual or not. But don’t panic yet! Your ISA Education team will make sure you are aware of the changes coming so that you will be prepared.

Question: What are the webinars being scheduled for 2018? Have you thought about having one about (fill in the blank)?

Answer: We have six webinars being scheduled for 2018 that can be on a variety of topics. Have a specific topic or speaker in mind? Let me know! Want to present a webinar for the organization and earn more Professional Development Credits (PDCs)? Let me know too! Our best presentations have been recommendations from the membership, so let me hear from you.

- Meredith Meuwly, ISA CAPP
Director of Education

The Importance of Continuous Learning for Appraisers

By Kelly Juhasz, ISA AM

Whether you’ve been an appraiser for 20 years or two years, acquiring new knowledge is important not only to your business but also to your own well-being. We often conveniently put this notion out of mind, but what truly and deeply motivates us isn’t money. It’s knowledge.

As a qualified appraiser, I am required to stay current with USPAP and ISA’s membership criteria, thus ensuring a high standard of appraisal service to the public. So, I am continuing to learn. But is being required to learn enough to keep me motivated and engaged? Not for me. I’m guessing it’s not enough for you either.

Why Keep Learning New Skills?

Many of you who know me as an appraiser likely don’t know that I am an expert in adult learning. For corporations and higher educational institutions throughout North America, I have designed courses and tools to increase performance and motivation in the workplace. I also have helped many arts organizations design programming to engage audiences and expand their purposes.

From a professional viewpoint, I would like to share three key factors that motivate students of all ages to continuously learn and acquire new skills.

1. Mastery: By building your competencies and skills, you can more easily establish credibility and trust with your clients, two critical components of the appraisal business. By gaining a deeper understanding within your current specialty or expanding your specialties, you will challenge and reward yourself with new knowledge and increased confidence.
   
2. Purpose: Acquiring new knowledge will help you solve problems for your clients and colleagues. By providing solutions, you will be heard and recognized for what you know. It will provide opportunities for new business and it will keep you relevant.
   
3. Enjoyment and Engagement: As an appraiser, you have a high degree of independence that most people in their work do not have. You have the control to direct your own learning in areas that interest you. You have choice. Create an environment for yourself that is rich, rewarding, and highly satisfying while running a successful appraisal business. 

Realizing successes focused on these three motivating factors starts with a commitment to continuing to learn and acquire new knowledge.

Five Ways to Continue Learning Right Now

Here are five ways to continue your learning in a meaningful way that you can do anytime as a member of ISA:

1. Volunteer with your local chapter, present at the ISA annual conference, or become an ISA Ambassador. By donating time and expertise in the appraisal community, you will learn from other appraisers. Together, you will solve a problem or create a quality event, workshop or working group and, in return, help to increase the overall expertise of all ISA members. (Purpose)
   
   
2. Add or expand your area of specialty. ISA offers many opportunities to expand your knowledge into other appraisal specialties. If you appraise art, you can take courses to learn more about prints or Asian art, or expand into antiques and modern furniture. I know that I prefer online and self-study courses so that I don’t incur travel expenses and don’t have to leave my office. The Foundation for Appraisal Education also offers annual scholarships for courses; don't hesitate to apply.
   
   Remember, everything works in cycles. Although some specialty areas seem to be shrinking, and though there may be objects you don’t currently receive many calls about, you’ll always have the chance to use your new knowledge. The cycle will change, market demand will increase for items, and you’ll be confident, armed with your new knowledge, and ready to apply it in your appraisal practice when those calls do come in. (Mastery)
   
   
3. Join a community board, advisory group or committee for an organization focused on your area(s) of specialty. We often think that we will be the ones providing the benefits by sharing our knowledge sitting as an expert, but, in fact, it works both ways. Getting involved will help you notice trends in the market, consumer interests and tastes, and also expand your list of contacts. It will also lead you to new business. You will find that you will learn and receive more than you give. (Enjoyment and Engagement)
   
   
4. Attend Chapter meetings and presentations. With the help of colleagues, for example, the Canadian Chapter of ISA features invited guest speakers as opportunities for new learning. And even more rewarding, fellow appraisers prepare detailed presentations based on their areas of expertise for other Chapter members. These presentations create a bridge between ISA members from across the country and from various specialties, and provide an opportunity to learn together and get to know each other better. There is nothing more challenging than presenting to a highly skilled and knowledgeable group like our appraiser colleagues. (Mastery and Engagement)
   
   
5. Increase your business skills. Find courses and programs directly tied to small business management, marketing and finance (such as calculating blockage discount equations). You will be able to focus your time on tasks that matter and learn when to bring in outside expertise that isn't your core strength. Also, check out the ISA Means Business! Toolbox for resources that can help you increase your business acumen. You will reduce your stress and enjoy running a business better. (Mastery and Enjoyment)

As an appraiser, you may feel like you are on your own, but with ISA, you are never alone.

Kelly Juhasz is an Accredited Member of the International Society of Appraisers, President of the Canadian Chapter, and a certified expert in adult learning. Her work in professional development has improved the performance of thousands of adults across North America and her appraisal knowledge is recognized by government agencies and cultural institutions nation-wide. She holds a Masters in Archival Science from Canada’s highest ranked university and a degree in Art History. She has worked on a range of artwork from Dutch Masters such as Rembrandt Harmenszoon van Rijn and Gerard Dou to contemporary works by William Kentridge and Peter Doig. Kelly was the winner of the 2017 ISA Rising Leader Award. 


Recommended Reading:
Pink, Daniel. (2009). Drive. Riverhead Books.


Would you like to be an ISA blog contributor? Email us. 

Appraisers Qualification Board Update

Todd W. Sigety, ISA CAPP
ISA TAFAC Representative

Based on updated criteria established by the Appraisal Foundation's Appraisals Qualification Board (AQB) and to ensure that ISA remains the leader in personal property education, ISA will be updating its membership education and experience requirements effective January 1, 2018.

These new requirements were created in response to increased demand and standards for professional appraisers. With these updates, potential clients will be certain that the ISA appraiser they're working with is credible, trustworthy and up-to-date on all appraising standards.

Read on for more details on how the updated criteria will affect the requirements for different levels of ISA membership.

ISA AM and ISA CAPP

If you currently have ISA’s Accredited Member (AM) or Certified Appraiser of Personal Property (CAPP) designation, you are already in compliance with the 2018 AQB requirements. You will also be considered a “qualified appraiser” under the AQB criteria. You will need to continue taking the 7-hour USPAP update every two years, as well as documenting your continuing education hours during requalification.

ISA Member

If you currently have ISA’s Member designation you will need to continue taking the 7-hour USPAP update every two years, as well as documenting your continuing education hours during requalification. You are encouraged to continue along ISA’s education pathway to achieve your Accredited Member (AM) designation in order to be fully compliant with the 2018 criteria.

If you do not advance to the AM level, you will still be required to complete ISA’s Requalification requirements every five years. At the ISA Member level, you are not considered an AQB Qualified Appraiser until you fulfill the requirements for the ISA Accredited Member (AM) designation.

If you earn your ISA Member designation after January 1, 2018, then you will be required to abide by the updated criteria. In addition to meeting ISA’s existing membership requirements, the following new requirements will be in effect:

1. You will have three years to advance to the ISA Accredited Member (AM) level. If you have not earned your AM designation after three years, you will revert back to the Candidate level of membership.
2. In order to advance to the Accredited Member (AM) level, you will need to complete 30 semester hours from an accredited college, junior college, community college, or university.

ISA’s education and experience criteria have been developed to encompass and include all of the AQB requirements. The new criteria will make your designations more credible and trustworthy to potential clients and users of appraisals.

Read more about ISA membership level requirements

Read the full AQB Personal Property Appraiser Qualification Criteria

- Todd W. Sigety, ISA CAPP
ISA TAFAC Representative

What Is USPAP and Why Is It Important to Hire a USPAP-Compliant Appraiser?

By Sarah Reeder, ISA AM

If you need a precious item of yours appraised – perhaps a painting, your grandmother’s ring, or an antique piece of furniture – you want to make sure you hire the best person for the job.

The International Society of Appraisers is committed to offering education and training to personal property appraisers so that they, in turn, can deliver the very best in quality appraisals to their clients. An essential part of this education and training is USPAP, the Uniform Standards of Professional Appraisal Practice, of which all ISA members must be in compliance as part of their membership requirements.

This blog post will help you understand a bit more about what is required to be a USPAP-compliant appraiser and why it’s so important to choose one.

So What Is USPAP?

The Uniform Standards of Professional Appraisal Practice (USPAP) is the official guidance document published by the Appraisal Standards Board (ASB) of The Appraisal Foundation (TAF). USPAP was adopted by the United States Congress in 1989 following the problems caused by the savings and loan crisis and defines a set of recommended procedures and ethical standards for appraisers. The document is revised and reissued every two years and the current edition is for 2016-2017. The current document is 395 pages long, covering an extensive framework of standards for appraisers to follow. Standards 7 (Personal Property Appraisal, Development) and 8 (Personal Property Appraisal, Reporting) are the two that directly address personal property appraising.

USPAP also contains a number of important Rules governing the professional behavior of appraisers separate from the Standards, including the Ethics Rule, Record Keeping Rule, Competency Rule, and Scope of Work Rule.

USPAP states, "The Appraisal Standards Board (ASB) of The Appraisal Foundation develops, interprets, and amends the Uniform Standards of Professional Appraisal Practice (USPAP) on behalf of appraisers and users of appraisal services."

What Does "USPAP-Compliant" Mean?

Appraisers who state they are USPAP-compliant have pledged to follow the regulations outlined in the Uniform Standards of Professional Appraisal Practice in their appraisal reports.

There is a 15-hour course with a written examination based on the material in the USPAP guidance document that appraisers must take and pass in order to state that they are current with USPAP. After passing the initial examination, appraisers must take a 7-hour update course every two years to remain current, or they will have to take the 15-hour course and examination again.

According to U.S. law, USPAP compliance is required for real estate appraisers, those who evaluate buildings and homes, but is only voluntary for personal property appraisers, who evaluate items such as antiques and fine arts within a house. However, all members of the International Society of Appraisers must be USPAP-compliant as part of their membership requirements.

Why is It Important to Hire a USPAP-Compliant Appraiser?

It's critical to hire a USPAP-compliant appraiser because USPAP protects the interests of the client.

One of the key features of USPAP is that the appraiser is not allowed to charge an appraisal fee that is based on the appraised value of the items included within the appraisal report. It’s easy now to see how this could lead to situations where an appraised value could be inflated to increase the appraisal fee, but historically this practice did occur.

To ensure your appraisal is done ethically and professionally, USPAP Rules require that appraisers, among other things:

• Include a signed certification of non-bias and impartiality in their appraisal report
• Prepare a detailed workfile to document the specifics of the appraisal
• Meet competency requirements

If you’d like to view the detailed guidelines, you’ll find them here:

• Uniform Standards of Professional Appraisal Practice, Standard 8-3, page 59 of current edition
• USPAP Record Keeping Rule, page 11 of current edition
• USPAP Competency Rule, page 12 of current edition

Finding a Qualified Appraiser

In conclusion, individuals seeking an appraisal of their personal property should always look for an appraiser who is USPAP-compliant. While voluntary, USPAP compliance is a mark of professionalism and ethical standards and serves to protect users of appraisal services.

To find a qualified appraiser in your area, use our Find an ISA Member tool, where you can search by zip code, specialty item, and more.

About the Author:
Sarah Reeder, ISA AM, is the owner of Artifactual History® Appraisal and a Member of the Board of Directors of the Foundation for Appraisal Education (FAE). She is a generalist appraiser of antiques and art and specialist of Mid-Century Modern and 20th Century Design.

This blog post is part of a series that covers many of the topics and questions a new client might have and serves both as part of the ISA Means Business! Toolbox. You can email the link to this post or print out the information for a client asking about USPAP or for future clients beginning the research process of hiring an appraiser. This series was born out of the realization that it can be very difficult for those outside the appraisal world to obtain detailed, reliable information about appraising, and we hope that this post and the other posts in this series will help educate users of appraisal services so they are knowledgeable, empowered consumers who recognize the importance of hiring professional, USPAP-compliant appraisers.

What's Next for USPAP?

By Leon Castner, ISA CAPP

The Uniform Standards of Professional Appraisal Practice is updated every two years. The next revision will be effective as of January 1, 2018. Although it seems far away, it is only about a year before the new version is released. The Appraisal Standards Board (ASB) is on the second public draft of possible changes, all of which are provided to the public for review and comment. These issuances are called “exposure” drafts and are sent to appraisal organizations and users of appraisal services.

The second draft was released in August and is open for critique until the middle of October. It can be viewed on The Appraisal Foundation’s website. It would be an interesting and prudent decision to view the proposed document and see what is being discussed for the next USPAP. It includes the issue of providing draft reports to clients, one that many of us face in the personal property appraisal community.

This process provides transparency and inclusion. Although the appraisal organizations are encouraged to respond, many of the comments come from individual people. These singular views are treated with care and carry as much weight as any other opinion. We suggest you read the exposure draft because it will keep you informed of the issues percolating in the appraisal community, allow you to be able to discuss these issues with fellow appraisers, and involve you in the process of making significant and important changes to the profession you love.

The exposure document is easy to read and offers quick notes about specific changes. One can easily respond to all or part of it by emailing comments to asbcomments@appraisalfoundation.org. The comments are carefully reviewed, documented, and analyzed prior to formulating a third, and possibly final, exposure, which will also be open for review. All final changes will be voted on prior to the acceptance and implementation of the 2018-2019 version.

Moving On Up With Education

By Libby Holloway, ISA CAPP and ARC Instructor

September is ISA’s back to school time. All three of our week long foundation courses, Core Course, Appraisal of Antiques and Residential Contents (ARC) and Appraisal of Fine Art (FA) are offered in the next few months. Shorter courses to include the 15 Hour and 7 Hour USPAP, Requalification and Oriental Rugs are also offered before this year’s end. The Foundation for Appraisal Education (FAE) even gets in the game with their upcoming Symposium in Philadelphia. There are lots of opportunities to make sure you are up-to-date with your qualifications and educational goals between now and mid-December. 

All members know that the Core Course and 15 Hour USPAP are required courses. After these are under your belt, you get a little freedom to choose your educational path and how you get your Professional Development Credits. (Don’t forget, Members need 50, AMs need 75, CAPPs need 100 and Lifetime members need 50 credits to renew.) It is also worthwhile to take a look at the ISA Credentialing Pathway, which provides an overview of the steps you can take to further your education.

It has been traditional to take the course that fits with your specialty area, which is certainly a good plan. Don’t forget, though, that most appraisers see many types of property onsite and need to know the basics of identification and description, whether they plan to complete the valuation or seek help from another member or specialist. Appraisers are also held accountable to appraise only that property they are competent to appraise (see USPAP).

The Appraisal of Antiques and Residential Contents (ARC) and Appraisal of Fine Art (FA) courses are great steps toward becoming an Accredited or Certified Member. Both are survey courses which offer a broad spectrum of knowledge to help appraisers understand at least a little about a lot of types of property. Survey courses don’t make you an expert on any subject but do give you a view of “good, better and best” for many types of property.

Both also teach you the language to use in writing descriptions, to identify and research the best comparable property, give tips on how to write USPAP compliant reports and prepare you to take other, more specialized courses. Since these are onsite courses, you have a chance to study with other members, learning from each other as well as the instructors. I have received help from both members I took ARC with sixteen years ago and from my students who took the course last fall. I admit to being a particular fan of the ARC class, which features lessons on lighting, oriental carpets, and everything in-between. (Maybe I’m a little biased.)  

I have been a CAPP member for several years now and have recently become an ARC instructor. I think I have a pretty good understanding of most decorative antiques and household property. This year, I have finally gathered up enough courage to take the Fine Art course in October. Though I have been comfortable including lower-value art in my reports, I have found that my lack of knowledge has potentially motivated me to turn down jobs with more complicated pieces included. I know that, with my background, I will not be competent to value all art.

That said, it will certainly allow me to be more confident when seeking help from more experienced fine art appraisers or specialists. I would even encourage those members with higher education who are pursuing the Specialty Studies path to consider taking one or both of the survey courses.

We often boast that ISA trains many of the most well-rounded and competent appraisers in the profession. The ARC and FA courses certainly play a part in making this true. I hope that you choose to join Michael Logan and myself in the ARC class this October. See you there!

ASK AN INSTRUCTOR: I have a client who wants ‘estate sale or liquidation value’ of furniture and not a full appraisal report. I believe I know the answer, which is a full appraisal report needs to be completed under USPAP, but I wanted to clarify this with you.

ISA members are invited to send in their questions on all things appraising and education to ISA's instructors. One of ISA's instructors will share answers on the ISA Now Blog. Please send questions to directorofeducation@isa-appraisers.org.

Question: I have a client who wants ‘estate sale or liquidation value’ of furniture and not a full appraisal report. I believe I know the answer, which is a full appraisal report needs to be completed under USPAP, but I wanted to clarify this with you.

Answer: The answer is slightly different than you thought. It hinges on the use of the word “full”. What one considers full may not be the same as another’s point of view. A “full” report is what one does every time they complete an assignment; you can’t do half of a report. I’m assuming the question really deals with the extent of the report. There are choices.

You could provide your client with a restricted appraisal report, one that simply states facts and does not summarize or expand upon them. This usually means the report is a little “leaner,” or not as exhaustive. It covers all the elements of the ISA report writing standard and the Standards of USPAP 7 and 8, but it is somewhat simpler, depending on the scope of work and what the client desires. However, a restricted report must not have a third party, so it could not be used for the IRS or an insurance claim or coverage (USPAP Advisory Opinion #11 provides an excellent chart of the differences between a Restricted Appraisal Report and an Appraisal Report).

Any opinion of value is considered an appraisal, but if you are an estate sale liquidator, you do have another option. You can put on your other hat (world’s greatest liquidator) and treat it as an estate sale situation providing your client with pre-sale estimates, just like auction pre-sale estimates. This would not be an appraisal report and is probably what your client wants or needs. However, you can only do that if you are indeed an estate sale liquidator or auctioneer. You must be very clear on which hat you are wearing and that your client does not perceive you as an appraiser. USPAP Advisory Opinion 21 covers this in detail. Valuation services done in other roles, not as an appraiser, are acceptable. Your obligation is not to misrepresent your role. This can be done through disclosure, notification, or careful distinction when speaking to the client. So perhaps the client is asking for something simpler which you might be able to accomplish.

The Benefits of Cloud-based Collection Management and Appraisal Software

By Collector Systems, ISA Affinity Business Partner

It is 2016, and technology is a key tool in how we all conduct and streamline our businesses. However, that doesn’t mean that you are actually taking advantage of the best technology that is available to you. Why not use technology to help you work smarter rather than harder? We believe that there is great potential for making cloud-based collection management and appraiser software truly work for appraisers.

In the software industry, many companies get so caught up in the constant release of new features and the use of jargon that they fail to successfully communicate to their client base – the very people who their products are designed for – what it actually is that they are doing and why. It is our responsibility, as software developers in the appraiser and collection management sphere, to communicate openly with our clients, to listen and respond to feedback, as well as to provide a first-class service.

When it comes to using technology to make our lives easier, there are two approaches: the immediate fix and the long-term solution. You can use it like a fly swatter and take care of each problem as it pops up, or you can use it to overhaul your current process and sidestep those annoying little problems altogether.

Most appraisers store information in a series of Word documents, Excel spreadsheets, PDFs, and however many papers can fill a manila folder. When it comes to writing USPAP reports, the particulars of each case must be transferred into a pre-made template from these various sources, and the data has to be manually copied and pasted each and every time. This process is inefficient, repetitive, and subject to human error… not to mention frustration.

Take a step back, and reset the perspective.

One way to use technology to make an appraiser’s life easier is to maintain all appraisals within a single repository, ensuring that the breadth of information is organized and readily available. Of course, it helps to work in a system that is intuitively designed to suit the specific needs of an appraiser. Your appraiser software should be focused on enabling you to best manage your data and run your business to its true potential, complete with features that are useful rather than extraneous.

This is where a cloud-based collection management and appraiser system can offer a solution. Instead of segregating out the data and investing your hard work in separate resources, why not combine those resources and create the foundations of your USPAP report? Enter the object information, images, values, comparables, and all other documentation into a single program. Manage and edit all of the information as you work through your appraisal. By keeping all of your data in a single repository, you will be building your USPAP report as you go.

The ultimate aim of a good cloud-based collection management and appraiser system is to help facilitate your work. A cloud-based collection management program is operating at its best when it allows you to perform at your best. You can benefit from the many advantages of working on a cloud-based platform, which allows you to access your information from any computer, smartphone, or tablet. Not only does this type of software offer an array of features to simplify, organize, and support your work, it also provide you with the opportunity to fundamentally restructure and improve workflow.

A good collection management and appraiser software program eliminates the need for the re-gathering and re-entering of information to create a USPAP report. Sit back while the software program extracts the relevant data and formats it all in a USPAP compliant report structured to your specifications – a truly customized document with personalized cover sheets, addenda, and everything in between, ready in less time than it takes to check “Create Appraisal Report” off your to-do list. The software pulls from the information you entered over the course of the appraisal and quickly performs a task you used to spend hours on.

We all understand how hard it is to reconfigure your work process in an effort to become more efficient.  However, in the long term, cloud-based collection management and appraiser software makes that transition far easier. Cloud-based collection management and appraiser software provides a platform that will help refine your business and optimize the work you put into appraising and – as we like to think of it – work smarter, not harder.

About Collector Systems: Collector Systems is the leading cloud-based software solution for appraisers, providing you with the tools you need to efficiently manage your appraisals. Upload all object information with an unlimited number of photographs and documents. Add comparables, condition reports, and more to create USPAP compliant reports for your clients. www.collectorsystems.com. T: 212-431-0897

ASK AN INSTRUCTOR: Is my expert witness report of an appraisal USPAP compliant?

ISA members are invited to send in their questions on all things appraising and education to Leon Castner, ISA CAPP. Leon, or one of ISA's other instructors, will share answers on the ISA Now Blog. Please send questions to leoncastner@comcast.net.

Question: I'm being considered for an expert witness assignment. My expert report in this case would not be an appraisal. A small part of the project would be to confirm the data and approach contained in an existing appraisal report on the subject.

Since my report will not be an appraisal, I do not want to perform a formal USPAP appraisal review of the existing report. I would like to speak to the data contained in the report and the approach. I feel the approach was solid. I reviewed the data and found it credible.

Would I be violating USPAP by referencing the report without performing a formal USPAP compliant review? My intention would be to disclose that referencing the data contained in the report is not, and should not be considered to be a review.

Answer: If you are reviewing someone else’s appraisal report, it is an appraisal review and must conform to USPAP. This could include a review of partial parts of the report, the methodology, the principles, the “approach,” and/or the valuation itself. It doesn’t have to include the entire report and may not even cover the valuation section, but it is still an appraisal review. According to FAQ #294 (page 353), an appraisal review is:

The act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal or appraisal assignment. 

The keys to understanding whether this is an appraisal review rather than a consultation or something else is:

• Was the work under review an appraisal? 
• Was the work performed as an appraisal or appraisal review? 

If you were asked to review a market data summary or any document that did not include any opinion(s) of value, it would not be called an appraisal review. You could do that without conforming to USPAP 3, 7, or 8, but you would still be under certain portions of USPAP, i.e. Definitions, Preamble, Ethics, Competency, and Jurisdictional Exception rules.

USPAP - My Pathway to Expert Witness

By Suzanne Sellers Houck, ISA CAPP, B.A. and M.A.L.S., ISA Board Member

Have you added expert witness testimony to your bank of services yet? If not, and a perceived lack of “expertise” is your reasoning, USPAP could be your solution. Throughout my career, my courtroom experience has been very limited. But all of that changed recently, when I had the opportunity to provide expert witness testimony in a class action lawsuit against a major insurance company.

The suit claimed that settlements for depreciable household items were being settled illegally, specifically by age depreciation only. I was skeptical about what role I could play given my limited experience in writing insurance claims appraisals. I’ve often considered specializing in an area but never did, and I still classify myself as a generalist; generalists, in my mind, don’t often provide expert witness testimony. But that was all before USPAP opened the door for more business possibilities for me.

During our initial conversation, the plaintiffs’ attorney told me he had found me through the ISA website. What surprised me most about our initial conversation was that he was most interested in talking to me about appraisal methodology, not necessarily my “product knowledge,” although that too was relevant. I had just taken the USPAP update a couple months prior, so I was feeling very refreshed and empowered. "Tell me more," I said.

The suit involved California Insurance Code 2051 2014. (I’m sure other states have similar laws.) This law addresses claims settlement procedures and focuses on the concept of physical condition at the time of loss without ever mentioning consideration of a specific marketplace, specifically payment of actual cash value. I explained that Actual Cash Value is considered an insurance term and that as an appraiser I deal with Replacement Cost New or Comparable.

I explained to him that all appraisals by definition consider the Intended Use of the appraisal (insurance, selling, estate planning, etc.) and Objective of the appraisal (determining fair market value, market value, estimating replacement cost, determining loss of value, etc.) and that each value definition has a specific market. There are four primary markets we consider. They are the retail market, wholesale market, orderly liquidation market, and distress liquidation market. Appraisers choose the market based upon the intended use of the appraisal, the object(s) being appraised and its many value characteristics: Type of Item, Size, quality, Age, Condition, Alterations and/or restorations, style, Materials, Authorship or manufacturer, Country of origin, Subject matter, Provenance, and obsolescence/usefulness. I explained how using just age or physical condition would result in different (often inflated) value conclusions, a fact that further emphasized the importance of considering multiple value characteristics within a specific marketplace.

He then asked for details about my training through ISA. I am proud of our extensive educational program and welcomed the opportunity to explain it. He had no idea certified appraisers went through such extensive training.

Moving forward, I prepared for my depositions by reviewing my ISA and USPAP manuals, concentrating on Standard Rules 7 and 8, as well as sections relevant to appraiser's use of marketplace. I highlighted and sent the attorney Standard Rule 7-3 (b) which defines and "analyzes the appropriate market consistent with the type and definition of value and comments the appraiser must recognize that there are distinct levels of trade (measurable marketplaces) and each may generate its own data."

In Standard 8, I highlighted 8 (a) iii which states: "Content of an Appraisal Report must be consistent with the intended us of the appraisal and at a minimum ... summarize information sufficiently to identify the property involved in the appraisal including the physical and economic property characteristics relevant to the assignment."

When you are providing expert witness testimony, you need to be aware that everything in your work file will likely become public. Mine was copied and, during the trial, my highlighted sections of USPAP were used as Exhibits and projected onto all screens in the courtroom. What great exposure for USPAP and ISA .

The information I sent might seem basic to you seasoned appraisers, but my observations were that this information was news to the attorneys present. At one point I was asked if I was "certified" in the state of California.

"No sir, I am not," I answered, observing the surprised glances between the attorneys before continuing. "I have a business license in the state of California, but I am a certified appraiser of personal property through the International Society of Appraisers and all my reports are compliant with the USPAP standards as set forth by the Appraisal Standards Board, a Congressional subcommittee."

After the trial, I was waiting by the curb for my taxi when the main defense attorney approached me and asked, “Where are you from?” 

“Southern California,” I replied, quickly adding, “Where I often write appraisals for your insureds and hope to continue to do so!”

He smiled and asked, “Do you have a card? I am looking for an appraiser.”

I don’t yet know the outcome of the trial, but I believe my concentration on USPAP and my ISA education helped promote my professionalism and hopefully that of the entire appraisal business for those present that day. Thanks, ISA, for providing that education and allowing me to expand my business practice in a very lucrative and exciting direction.

Where are YOU on the ISA Credentialing Pathway?

As we come to the end of our first day of ISA's premier educational event of the year, Assets 2015, it’s important to ask yourself: Where am I on the ISA Credential Pathway?

Open to members and nonmembers, ISA's professional development and certification courses come in an array of course formats that make it easy to advance your industry-related learning. On-site courses afford you the opportunity to receive instruction while collaborating with peers in group activities. The Online Learning Center provides members unable to travel with real-time online presentations and a self-paced Core Course option, while Distance Education allows you to complete coursework via email. And last but certainly not least, our incredibly convenient webinars give users access to a rich archive of recorded sessions (some of which are free!).

So whether you're starting the credentialing process (Stage 1) with the Core Course in Appraisal Studies and the 15-Hour USPAP Course; building your credentials (Stage 2) with more specific areas of expertise; maintaining your status (Stage 3) through requalification courses; or advancing your knowledge (Stage 4) in your area of focus, ISA education allows you to take part in courses led by some of the most accomplished, knowledgeable professionals in the appraisal industry.

Here are our upcoming courses in June. View the full 2015 course offering on the ISA website.

June 1–7
Core Course in Appraisal Studies
Instructors: Leon Castner, ISA CAPP & Kathryn Minard, ISA CAPP
Arts and Letters Club of Toronto

June 9–10
15 Hour Personal Property USPAP Course
Instructor: Leon Castner, ISA CAPP
Arts and Letters Club of Toronto

June 15–17
Asian Art I: Appraisal of Japanese Prints
Instructor: Daphne Rosenzweig, PhD, ISA CAPP
NIU – Naperville Campus in Naperville, IL

June 18–20
Asian Art III: Foundation Course in Asian Ceramics for Appraisers
Instructor: Susan Lahey, ISA
NIU – Naperville Campus in Naperville, IL

As we head into Assets 2015, we encourage you to seek out educational opportunities, share information and resources with your industry peers and fellow Assets attendees, and continue down that ever-rewarding Credentialing Pathway.

Ask Leon: How Do I State My USPAP Compliance?

ISA members are invited to send in their questions on all things appraising and education to Leon Castner, ISA CAPP. Leon will share his answers on the ISA Now Blog. Please send questions to leoncastner@comcast.net.


Question: Could you please let me know, unequivocally, how I’m supposed to state that I am up to date on my USPAP?

Answer: This is one of many versions of the same question that seems to be foremost in our members’ minds. USPAP is a set of minimum standards-not a certification or accrediting organization. One belongs to ISA-an appraisal organization that mandates their members write appraisals according to USPAP and ISA Report Writing Standards. This requires members to take an initial 15 hour USPAP class and a 7 hour update every 2 years. If you have, you are in compliance with those requirements. You are required to write your reports in conformity with those standards and provide an attestation (a signed certification) that is an integral part of the appraisal.

Since we have previously discussed the fact that taking the USPAP class (15 hour and/or 7 hour updates) does not provide any kind of “certification” to the appraiser, it becomes important to be able to demonstrate and express to the public and our clients that we are following the rules and are current in our ISA membership and the requirement that we attend USPAP courses on a regular basis. This is done by including the attestation (certification) in our report.

Often, however, this is not sufficient for advertising or explaining our credentials to the public. I would suggest a declaration similar to the following that states exactly your position.

I am an ISA member (either member, accredited member, or certified member) in good standing, having fulfilled all the membership requirements including the completion of mandatory USPAP classes. My reports are done in compliance with the current version of USPAP and the ISA Report Writing Standard.

FAAQ

(Frequently Asked Appraisal Questions)

Question: Are photographs required for estate appraisals?

Answer: To my knowledge there is no requirement for photographs for estate appraisals. It is always a wise idea, particularly if it is a significant estate. Remember that a picture is worth a thousand words. It will certainly clarify your descriptions and allow the IRS to decide whether the comparable sales are indeed comparable and accurate. (I would use common sense in my use and placement of the photographs. Not every single item needs one, particularly if they are nominal items. Room shots would be appropriate in those cases.) It’s always better to have more than necessary – even if they are only kept in the files.

Question: One of the guardians that I do work for needs a letter of opinion. I usually do this instead of an appraisal due to the fact the contents of the condo are pretty much worthless (everyday items totaling less than $500, if sold at an estate sale), but the probate court needs a letter. I usually state in a letter to my client that the contents should be donated or disposed and I don’t put down a dollar amount. 1. Should I put down a dollar amount? 2. If I don’t put down a dollar amount is it still an appraisal?

Answer: According to both USPAP and ISA, an appraisal is an opinion of value. This can be expressed as a single number, a range of numbers, greater than or less than, or something in relationship to a previous value opinion or numerical benchmark. For example, if you say something is worth more than zero but less than $500 (or use the term “junk”), it is still an opinion of value from someone calling themselves an appraiser. As such it must include all the elements of a properly prepared appraisal.

There’s no reason, however, that you can’t provide this to the client in a form or template. This would contain all the elements, including the USPAP certification. The “body” of the report would be a short description of the property (could be the entire houseful) with an opinion of the value-even if it is “worthless.” It wouldn’t take that much extra effort to provide this to your client, still keeping expenses low. This would provide the client exactly what they need and make your performance a lot more professional.