River Trading Post Art Valuation Services - page 4

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seem, the IRS maintains a list of "disqualified" appraisers; so, the appraiser needs to be absent from the
"disqualified" list.) Similarly, if insurance coverage is the purpose, inquire of the insurer about specific
requirements for appraisers and appraisals.
Reproduced below is a checklist from the Appraisers Association of America for a proper appraisal. Note that
this outline applies to general items and is not tailored to American Indian Art. For works of art, exhibition
history, publication history and condition are key factors. The older the piece, the more important the role
documentation plays in determining its market value. Particularly important are ownership records covering
certain problem periods: e.g. any pre-Columbian pottery without a clear provenance is not saleable.
Appraisers Association of America's Elements of a Correctly Prepared Appraisal:
* Name and Address of Client
* Purpose of the Appraisal--Intended use: Donation, Estate, Equitable Distribution, Insurance, etc.
* Type of Valuation Used--Replacement value, fair market value, marketable cash value, etc. and Definition.
* Valuation Approach Used--Cost estimate approach, income approach, market data comparison approach,
etc.
* Market in which valuation is applied: most common market (place).
* Market Analysis--Generic market History and possible projections for future activity.
* How objects were acquired, especially for IRS purposes.
* Statement of Professional Qualifications of Appraisers including curriculum vitae.
* Date of Preparation of Appraisal and date on which objects were viewed and effective date of Appraisal.
* Statement of physical inspection or method used in determining value. Any qualifications?
* Statement of "disinterest" on the part of the Appraiser.
* Statement that the Appraiser has not been "disqualified" by the IRS (for IRS Appraisals).
* Statement of Assumptions and Limiting Conditions.
* Statement of Fee Structure--Statement that the Appraisers fee is not contingent on appraised value of
objects.
* Statement of belief in authenticity that the appraised object(s) correspond to description(s) listed in the
Appraisal.
* Clear division of appraisal when one or more than one appraiser is involved. Who did what? Inclusion of
curriculum vitae of consulting appraiser.
* Thorough Description of Appraised Objects--Measurements and weights when applicable.
* Brief biography of the artist when necessary.
* Provenance (if available).
* Exhibition and Publication History (if any).
* Statement of Condition of Appraised Objects.
* Comparables and related analysis, when necessary.
* Firm Statement of Value--Not estimates, except when followed by detailed explanations of qualifications.
* Signature of Appraiser(s) and Tax ID number(s) when appraisal is prepared for IRS purposes.
* Statement of number of pages in appraisal.
In summary, an appraisal respecting these criteria compiled by a suitable art appraiser should suffice to:
substantiate charitable donations, settle estate issues and justify the asking price for a painting, sculpture,
print or other American Indian Art to be offered for sale in private or at auction.
Third Step: Authentication
Happily, few artworks need to be exposed to the rigors of full expert authentication. In general, such works
are of great value but lack the proper provenance to allow them easy acceptance in the art marketplace.
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