Evaluating an Appraiser
Careful Selection is Crucial to Safeguarding Art and Precious Objects
By Roberta M. Kramer

When was the last time you had an appraisal done for your art and antiques? Many
collectors and homeowners have spent a great deal of time and money to acquire
beautiful works of art and antique objects and furniture, but how often do we think
about the more mundane aspects of ownership? Along with the need to care for and
conserve these items for posterity comes the need to properly insure them against
a variety of peril including theft and fire.

Are you considering making a gift of fine art
or antiques (or other non cash tangible personal property) to a museum or other
institution? If the gift is more than $5,000 in value you will need a good, qualified
appraiser to appraise the item(s) and to sign a form IRS 8283 for inclusion with your
Federal Tax return.

Have you experienced a loss of personal property due to a covered peril on your
insurance policy? If so, you may need an appraiser to help you sort through the
replacement value of your losses and assist in the claims process with your
underwriter and adjuster.

Have you made provisions for your fine arts and antiques in your estate plans?
Does your company own a collection that has not been recently evaluated as an
asset? You may well need an appraiser to assist you in any of these
circumstances. If you are the executor of the estate of a friend or relative and the
estate contains fine quality tangible personal property, you will need an appraiser to
conduct a Federal Estate Tax Appraisal for the estate tax return.

As should be apparent from the above scenarios, it is always a good idea to find an
appraiser that you are comfortable with and develop a relationship so that your
appraiser may assist you in a variety of ways now and in the future.

For the purpose of your insurance needs, if it has been more than five years since your last appraisal, it’s time to do it again.

So how does one choose a qualified appraiser to write a current report for your
insurance carrier? There are several good sources for referral including your
conservation company, Sotheby’s and Christie’s, your attorney or banker and through the three main organizations of appraisers in the United States,
the International Society of Appraisers (ISA), the American Society of Appraisers
(ASA) and the American Association of Appraisers (AAA). All three have web sites
and will be happy to give you a list of qualified appraisers.

But how to choose? When shopping for an appraiser, do your homework and ask
questions, including requesting a copy of the appraisers curriculum vitae (CV)
listing their past experiences and clients. Feel free to contact clients that the
appraiser has worked for in the past to determine if this is the right person for you.
Don’t forget to ask how the appraiser bills for his or her services. Never hire an
appraiser who charges by the item or who charges a percentage of the value of the
property appraised. A good appraiser charges for service by the hour. Expect to
pay between $125 and $275 per hour for a well-qualified appraiser. Resist
temptation to hire a less expensive and less experienced appraiser, it may take
them many more hours to finish your job and end up costing more in the long run.

If you have a collection of one type of art or antiques—for example American
Impressionist painting—make sure to determine if this appraiser has experience
with this type of property. The more the appraiser is familiar with your area of
collecting, the better the document will be.

Once you have selected an appraiser, before you make an appointment to have
them come and view your property, contact your insurance agent or company and
get a list or guideline as to the specific dollar amount an item of fine art or antique
should be worth before they require an appraisal. This dollar amount will vary widely
depending on your underwriter; so don’t waste time and money on items that are
covered under your general contents coverage. Be very clear with your appraiser
as to the nature and purpose of your assignment— remember you are the client
and as such, you run the show.