Preparation by the Property Owner Before the Arrival of the Appraiser

Preparation

Appraisers charge for their time, beginning from when they leave their office. As the property owner you can take steps to minimize the appraiser’s time on site in order to keep your cost down. Here are some simple tips:

1. Be available on time at the time of appointment.
2. Provide a safe, distraction free, well lighted space for the appraiser to perform examinations.
3. Remove hanging objects from the wall.
4. Remove prints from their frames.
5. Remove anything that is inside a piece of furniture and around it.
6. Arrange like objects together and by category.
7. Clean and make ready all objects.
8. Have ready copies of all documentation on an object like invoices, prior appraisal reports, insurance scheduling, any family history on an object written down, etc.
9. If litigation is involved, have your attorney call the appraiser because your attorney will be the client, not you.
10. Clients can expect to pay a retainer before the appraisal begins if it is a significant property assignment. Payment in full will be made before the final report is released to the client. For limited appraisal reports of lesser properties full payment is expected at the time of examination.
11. If your appraisal report is intended for estate planning, charitable donations, settlements, or insurance scheduling, you must engage an appraiser certified in the Uniform Standards of Professional Appraisal Practice (USPAP). Only a certified USPAP appraiser can satisfy the requirements of Trust Officers, the IRS, the Courts, and Insurance Underwriters.
12. If you have specific questions not covered above, do not hesitate to ask. Mr. Grove can answer most questions immediately. Email him at mark@mgrove.com or call (434) 964-1403.

Donations

If your non-monetary donation (of stuff) for the tax year totals or exceeds $5000, an appraisal report written by an accredited, USPAP qualified appraiser is required. Retain the report  in your files but submit IRS Form 8283 with your tax return to IRS. EXAMPLE: You donate a bicycle ($100) in January to Good Will, a mower ($300) to your church in August, and a sculpture ($4700) in December to a museum, bingo! You’ve exceeded the $5k threshold. You have two options: 1. Forget about the write-off, or 2. Hire an accredited appraiser.

If the donation exceeds $20,000 then the appraisal report accompanies your tax return (and the 8283) to IRS where it is scrutinized by the IRS Art Review Panel for accuracy.

The greater the value of the donation, the closer the scrutiny. The closer the scrutiny, the greater the risk. The greater the risk, the greater the cost of the appraisal because more due diligence is required by the appraiser. Do not risk an audit by using Billy-Bob at the flea market to appraise your stuff. Do it right the first time or you and Billy will share the consequences.