22 AUG 2012 – Email QUESTION: I am representing a world renowned artist (sculptures) to obtain a loan for an art project. The artist wants to use a mold which s/he created and used for a world-wide event that I’m certain you would be very familiar with. This mold was appraised back in 2005 by an appraiser who has sense retired. I am having a very difficult time finding a competent and qualified appraiser to perform this task for the bank. Is this something you could possibly do? I have the appraisal that was done in 2005 and all the information about the copyright information and such. Please let me know your feelings on this.
ANSWER: Thank you for the inquiry. FYI: There are plenty of competent and qualified accredited appraisers that are able and available through the professional appraisal organizations ASA, AAA, ISA, and RICS. The problem that you’re probably encountering is an absence of any professional appraiser with earned credentials that has the willingness to assume the obvious risk: revocation of credentials. The Federal USPAP Standards are crystal clear: numerical conclusions must be based on market comparisons. I suspect you have zero market results for this “mold” because it is unique. That’s why you cannot find an appraiser and that’s why banks will not secure a loan based on a mold, especially in this environment. Unless you have a polaroid of the mold being held in the hands of the maker, and the maker happens to be Leonardo de Vinci, you’re wasting your time. Don’t expose your client to the risk.