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The International Society of Appraisers


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Title: The International Society of Appraisers

  • The International Society of Appraisers

  • Membership or Education Questions
  • Call 312.981.6778

our audience
  • Professionals who rely on appraisals and
    accurate value information
  • Community Residents who purchase appraisals to
    solve problems, i.e. insurance coverage, estate
    planning, charitable giving
  • Collectors, Librarians, Curators, Registrars
    who must wisely manage assets, investments,
    archives and heirlooms
  • Students and Teachers who research objects in
    social and historical contexts and design new

  • Better serve your clients by
  • Understand what makes an appraisal compliant
  • Know what you are asking your clients to provide
  • Be able to qualify the documents for review
  • In many cases lawyers and estate planners do not
    understand the appraisal process
  • Reduce the risk of making decisions based on
    faulty value conclusions or hiring an unqualified
  • Expand your professional practice with additional
    value added services such a personal property
    valuation, art advisory contacts, collection
    management, etc

  • Financial Planners and Advisors Need to Look
    Beyond Real Estate and Securities and Assist
    Clients with Other Assets from the Balance
  • Personal Property Values Passion Investments
  • Art/Antique Collection
  • Automobiles
  • Luxury Goods
  • Wine
  • Jewelry/Watches
  • Coins/Stamps

Community Residents
  • Solve immediate problems such as
  • insuring art and antiques
  • determine estate tax liability
  • making charitable donations
  • processing damage claims
  • distributing assets equitably
  • settling divorce or bankruptcy litigation

Community Residents
  • Become a savvy consumer by knowing what should be
    included in the appraisal report
  • Understand the appraisers credentials so you can
    hire the right appraiser for the job
  • Understand the various levels of value for your
    intended use

Collectors, Curators Librarians
  • Understand the true value of your collection or
    the holding for which you are the steward
  • Learn to increase or downsize collections
    intelligently by being an informed trader, buyer
    and/or seller
  • Expand your network of resources to become a
    sophisticated champion for your collection

Students and teachers
  • Discover new topics for scholarly research
  • Expand the curriculum by designing new courses
    and enhancing existing classes
  • Be part of the emerging and interdisciplinary
    academic field of the study of material culture

Do you know your collection?
  • Membership or Education Questions
  • Call 312.981.6778

Know your collection
  • Documenting a collection will not only enhance
    the value of individual objects in the collection
    but add context and interest to your collection.
  • Where was it purchased, when and for how much?
  • Is the original invoice on file?
  • Who owned it previously? Was it inherited?
  • How did the original owner come by it?
  • What is known about the maker or artist?

Know your collection
  • Has it been appraised? When, by whom and at what
    valuation (insurance, market, replacement)?
  • Has the object been published? Where, and by
  • Has it been included in any exhibitions? When,
    where, curated by whom?
  • Where is it now?
  • When was it sold, for how much?
  • Does it have any unique identifying numbers from
    previous owners? (museums call these accession

Evaluating Your collection
  • Membership or Education Questions
  • Call 312.981.6778

14 points of Connoisseurship forthe Decorative
  • Developed at Winterthur and published as a book
    called Evaluating Your Collection by Dwight P.
    Lanmon from the Winterthur Decorative Arts Series.

14 points of Connoisseurship Developed at
  • Overall Appearance
  • Does it work
  • Ornamentation complement the form
  • Pleasing form
  • Graceful
  • Unity of parts to the whole
  • Form
  • Shape
  • Mass
  • Proportions

14 points of Connoisseurship Developed at
  • Ornament
  • Color
  • Figure of wood
  • Texture,
  • Turnings
  • Carvings
  • Engraving
  • Enameling
  • Printed design

14 points of Connoisseurship Developed at
  • Materials
  • Woods
  • Surface coatings
  • Adhesives
  • Hardware
  • Know what was used and during each decorative
    arts period
  • Finish
  • Original
  • Color
  • Layers

14 points of Connoisseurship Developed at
  • Color
  • Color Changes
  • Exposure to air
  • Pollutants
  • Sunlight
  • Craft Techniques
  • Quality of craftsmanship
  • Techniques and practices of the period
  • Congruency of parts (single maker, mixed parts)

14 points of Connoisseurship Developed at
  • Trade Practices
  • How items are marked or labeled
  • Excise and Tariff laws
  • Craft Organizations
  • Function
  • Reason for existence
  • Why was the object made
  • Intent of the artist
  • Style
  • Features define style
  • Features may link object to a period (i.e.
    Baroque, Rococo, Neo Classical)

14 points of Connoisseurship Developed at
  • Attribution
  • Signatures
  • Labels
  • Stylistic
  • Take caution as labels can be applied and
    signatures can be fraudulent
  • History of Ownership
  • Sales Receipts
  • Sales Catalogs
  • Exhibitions
  • Family history

14 points of Connoisseurship Developed at
  • Condition
  • Natural aging such as softening of edges
  • Wear (logical pattern and location)
  • Patina
  • Repairs/Restoration Sympathetic/Unsympathetic
  • Level of acceptance of wear and damage
  • Evaluation
  • Aesthetic value
  • Intrinsic value
  • Is it culturally important
  • Rarity
  • Worthy of Purchase

14 points of Connoisseurship Developed at
  • Conclusion and Determination
  • based upon the 14 points

Appraisers appraisal organizations
  • Membership or Education Questions
  • Call 312.981.6778

Appraiser definition
  • An appraiser is a professional who specializes in
    providing opinions of value (appraisals) and
    valuation services in an independent, impartial
    and objective manner
  • Professional appraisers have taken courses and
    have been trained in appraisal theory and
    methodology as well as specific product and
    specialty knowledge
  • ISA appraisers must take classes, pass exams, and
    subject their reports to peer review as well as
    meet USPAP and minimum experience requirements

Why hire an appraiser
  • Purchase Insurance Coverage
  • Property Damage or Loss Claim
  • Donations and Gifts
  • Selling an Item/Purchasing an Item
  • Estate Planning
  • Equitable Distribution for an Estate
  • Estate Taxation
  • Collateral for a Loan
  • Desire to know

Why hire a designated appraiser
  • Education
  • Training
  • Experience
  • Legitimacy
  • Code of Ethics
  • Current and up to date in
  • Appraisal Standards
  • Market Trends

Four Recognized Appraisal organizations
  • International Society of Appraisers (ISA)
  • Appraisers Association of America (AAA)
  • American Society of Appraisers (ASA)
  • Royal Institute of Chartered Surveyors (RICS)
  • We recommend to only hire a designated appraiser
    from one of these four recognized appraiser

International society of appraisers
  • Largest personal property appraisal organization
  • Best appraisal principles, theory and methodology
    in the profession
  • Appraisal Foundation Sponsor
  • Code of ethics
  • Only personal property
  • Training/Annual Conference
  • Requalification requirements
  • Professional development

International society of appraisers
  • National Network of Qualified Appraisers
  • Industry recognition for the best appraisal
    theory and methodology program
  • Antiques and Residential Content Programs
  • Fine Art Programs
  • Specialty Studies Pathway
  • USPAP Trained and Tested
  • Website specifically designed to search for
  • The best annual conference

Other appraisal organizations
  • Typically smaller organizations
  • Lower standards
  • Diploma mills
  • Lack of training
  • Lack of professional development
  • Many are dealer-centric (conflict of interest)

Non-affiliated appraisers
  • Very Often Lack Training in
  • Appraisal Theory
  • Methodology
  • Principles
  • Markets
  • Many Times Dealer Associated
  • No/Limited Professional Development
  • Limited Contact with other Appraisal Experts and

Auction Houses and appraisals
  • Auction Houses
  • Used to giving auction estimates and not other
    levels/standards of value
  • May lack appraisal theory and methodology
    understanding and experience
  • Conflict of interest (looking for consignments)

Code of ethics
  • Members of recognized professional personal
    property appraisal organizations, such as ISA,
    all adhere to a strict societal and USPAP code of
    ethics and conduct

The appraisal foundation
  • Establishes, improves and promotes the Uniform
    Standards of Professional Appraisal Practice
  • Disseminates information on USPAP and appraiser
    qualification criteria
  • To the profession
  • State and federal agencies
  • Users of appraisal services
  • Related industries
  • Sponsors activities relating to standards and
  • International Society of Appraisers is a sponsor
    of the Appraisal Foundation

  • Uniform Standards of Professional Appraisal
  • Comprehensive set of standards for appraisers
  • Ethics
  • Competency
  • Record Keeping
  • Scope of Work
  • Jurisdictional Exceptions
  • Development Standards
  • Reporting Standards

USPAP Code of ethics
  • Must not perform an assignment with bias
  • Must not advocate the cause or interest of any
    party or issue
  • Must not accept an assignment that includes the
    reporting of predetermined opinions and
  • Must not misrepresent his or her role when
    providing valuation services that are outside of
    appraisal practice
  • Must not communicate assignment results with the
    intent to mislead or to defraud
  • Must not use or communicate a report that is
    known by the appraiser to be misleading or

USPAP Code of ethics
  • Must not knowingly permit an employee or other
    person to communicate a misleading or fraudulent
  • Must not use or rely on unsupported conclusions
    relating to characteristics such as race, color,
    religion, national origin, gender, marital
    status, familial status, age, receipt of public
    assistance income, handicap, or an unsupported
    conclusion that homogeneity of such
    characteristics is necessary to maximize value

USPAP Code of ethics
  • Must not engage in criminal conduct
  • Must not willfully or knowingly violate the
    requirements of the RECORD KEEPING RULE and
  • Must not perform an assignment in a grossly
    negligent manner.

Warning signs
  • Membership or Education Questions
  • Call 312.981.6778

Do not hire an appraiser if
  • The appraiser claims to be associated with an
    appraisal organization and they do not come up on
    the sites appraiser search
  • The appraiser belongs to a lesser recognized
    organization or does not hold a designation from
    a recognized organization
  • The appraiser does not belong to an appraisal

Do not hire an appraiser if
  • The appraiser claims to be USPAP Certified
    (USPAP does not certify appraisers)
  • The appraiser has no appraisal theory or
    methodology training
  • The appraiser is not USPAP tested and requalified
    every two years
  • Is banned from practicing before the IRS
  • If the fee is based upon a percentage of the
  • The appraiser values and offers to buy

The appraisal
  • Membership or Education Questions
  • Call 312.981.6778

Appraisal definition
  • An appraisal is the act or process of determining
    value, estimating cost, or calculating the
    present worth of forecasted earnings
  • An appraisal report is a written documentation of
    the same
  • An opinion of value which can be express as a
    specific amount, a range of numbers, or a
    relationship to a previous value opinion or set
  • Appraisals are opinions based on an informed
    judgment which are supported by facts, analysis
    and processing of relevant factors

Intended use
  • Insurance - Collection
  • Insurance Damage/Loss Claim
  • Donation
  • Estate
  • Equitable Distribution
  • Estate Planning
  • Liquidation
  • Acquisition
  • Loan Collateral
  • Pre Move Inspections

Elements of a qualified appraisal
  • Name and Address of the Client
  • Intended use
  • Intended Users
  • Name, Contact Info and Qualifications of the
  • Signed Certification
  • Scope of Work narrative
  • Effective date of the report and value
  • Appropriate Market
  • Objective
  • Value Being Sought and Definition

Irs qualified appraisal (Donation)
  • Detailed Description of the Property
  • Physical Condition of the Property
  • The Expected Date of Contribution
  • Terms of Agreement Relevant to the Property
  • Name, Address, Tax ID of Appraiser Fee
  • Appraiser Qualifications
  • Statement Appraisal was prepared for Income Tax
  • Date of Which Property Was Valued
  • Appraised for Fair Market Value, Basis for Value,
  • Method of Valuation used to Determine FMV

Irs qualified appraiser
  • Appraisal Designation from a Recognized
    Professional Appraiser Organization or
  • Has otherwise met minimum education and
  • Regularly Performs Appraisals for Pay
  • Meets other requirements as prescribed by IRS
  • Is not been prohibited from practicing before the
    IRS at anytime over the three year period ending
    on the appraisal date

The appraisal process
  • Initial Consultation
  • Scope of Work and Intended Use
  • Inspection Inventory
  • Critical Assumptions Limiting Conditions
  • Research
  • Comparable Data
  • Value Adjustments and Value Conclusions
  • Report Writing
  • Compliance and Ethics Reviews

Other services
  • Consultant
  • Brokerage (Acquisition or Disposition)
  • Advisor
  • Collection Management
  • Downsize Assistance
  • Oversight Services (conservation, framing,
    shipping storage)
  • Condition Reports and Annual Inspections

Other services
  • Litigation Services
  • Support appraisal report
  • Appraisal review
  • Technical analysis
  • Assist client in a legal matters (integrity and
    objectivity must be maintained)
  • Expert Witness
  • Serve as arbitrators or mediators in disputes

Markets and value
  • Membership or Education Questions
  • Call 312.981.6778

Price, cost value
  • Value the monetary worth of something the
    amount of goods, services or money that something
    will command in exchange within a certain market
  • Value must be justified
  • Price the amount someone is asking for an
  • Price is not necessarily justified
  • Cost the amount someone paid for an item
  • Cost, like price is not necessarily justified

Approaches to value
  • Market Data/Sales Comparison
  • Cost
  • Income

  • Retail
  • Wholesale
  • Orderly Liquidation
  • Distress Liquidation
  • (values can be different in each market place)

  • Depending on timing can conflate multiple markets
  • Traditional
  • Online
  • Condition
  • Selling
  • Buying
  • Appraisals

Market trends
  • Changes in Values due to
  • Economics
  • Changes in Taste
  • Geography

Standards of value
  • Fair Market Value
  • Marketable Cash Value
  • Liquidation Value
  • Market Value
  • Actual Cash Value
  • Salvage Value
  • Liquidation Value

Insurance costs
  • Estimating the cost to replace an item of
    personal property with an exact duplicate,
    suitable substitute or manufacture with exact
    duplicate or suitable substitute
  • Replacement Cost
  • New
  • Used (Comparable)
  • Reproduction Cost
  • Repair or Restorations Cost

Affects on value
  • Condition
  • Provenance
  • Markets
  • Individual Item vs Collection
  • Singular or Group (i.e. single chair or set)
  • Value In Place / In use
  • Appreciation
  • Depreciation
  • Authentication

Expertise and competency
  • Membership or Education Questions
  • Call 312.981.6778

Generalist appraisers
  • A generalist is an appraiser who appraises a
    broad range of properties
  • Generalists are critical to the appraisal
    profession, often appraising large estates and
    other complex assignments that encompass many
    areas of knowledge
  • When necessary, a competent generalist consults
    with and acknowledges specialists and experts in
    creating a thorough appraisal report.

Specialist appraisers
  • A specialist is an appraiser who primarily
    concentrates on a specific property and regularly
    performs appraisals of that property type
  • A specialist often has additional education in a
    limited and dedicated field
  • A specialist usually has more knowledge and
    experience than a generalist in a particular
    property type, but is not as knowledgeable as an
    expert in the field

expert appraisers
  • An expert is an appraiser with comprehensive and
    authoritative knowledge of or skill in a highly
    concentrated field as a result of extensive
    education and experience
  • Expertise is normally gained after many years of
    formal education, self-study, market experience,
    scholarly research, presentation and publication,
    or a combination thereof
  • Only an appraiser working at the highest levels
    within a field should be considered an expert

Appraiser vs authenticator
  • An appraiser is usually not the authenticator but
    in certain instances can be
  • Training in the logic and reasoning required to
    support the opinion
  • Has proper credentials and experience in the
    appropriate specialty
  • Appraisers identify
  • Many clients and collectors assume the appraiser
    is also an authenticator

  • French term meaning history of ownership of a
    valuable object
  • Previous Ownership
  • Dealers
  • Collectors
  • Auction houses
  • Dates
  • Exhibition History
  • Mention in Books and Magazines
  • Catalog Raisonne
  • Impact on value

  • A full provenance provides a documented history
    that can help
  • prove ownership
  • assign the work to a known artist
  • establish the work of art's authenticity

  • Broadly, the act of proving that something is
    true or genuine
  • Market may determine authenticity
  • Dealers may warrant authenticity
  • Object deemed authentic or
  • Fake
  • Forgery
  • Copy
  • Misattribution

Authentication vs identification
  • Qualitative
  • Scholarly
  • Imprecise
  • Opinion
  • Subjective
  • Extrinsic
  • Inexact
  • Subject to change
  • Quantitative
  • Scientific
  • Measurable
  • Factual
  • Objective
  • Intrinsic
  • Exact
  • Fixed

Why authenticate
  • When provenance is not clear
  • Valuable work being donated
  • Value would change after authentication
  • When fakes and forgeries are known to exist (Dali
  • Important works being offered
  • Client needs to know
  • Insurance
  • Historical accuracy

Not always reliable signs of authenticity
  • Signatures
  • Older Attributions
  • Unvetted Exhibitions
  • Auction Sales
  • Gallery Sales
  • Certificate of Authenticity (COA)

Certificate of authentication (COA)
  • Beware
  • Not always what they appear
  • Some will have inappropriate values connected to
  • Some COAs are self-serving and used to deceive

Fakes, frauds, copies Mis-attributions
  • Membership or Education Questions
  • Call 312.981.6778

  • A forgery is normally defined as a work of art
    presented to a buyer or audience with the
    intention to deceive
  • Fraudulent intention is necessary for a work to
    be a forgery
  • this distinguishes forgeries from honest copies
    and merely mistaken attributions
  • Usually a forger creates in the style of a famous
    artist and tries to sell it, often in collusion
    with an unscrupulous dealer
  • Forgers rarely execute an exact copies of
    existing authentic original object
  • such works are in most cases impossible to sell
    to informed buyers.

  • Martin Johnson Heade, by Ken Perenyi

  • Fake on the Left (Chipstone Collection)

  • Fake rolex on the right

  • Reproduction
  • Revival example
  • In the style of
  • Not intended to deceive
  • May be marked as a copy

  • Incorrectly Identifies an object
  • Authentication not done by an expert
  • Scholarship changes
  • Error or mistake based

  • Membership or Education Questions
  • Call 312.981.6778

insurance policies
  • Homeowners Policy
  • Scheduled All Risk
  • Blanket All Risk
  • Art Title Insurance

Homeowners insurance policiesand appraisals
  • Unscheduled
  • Typically limited to 50 of dwelling coverage
  • A Deluxe Policy may be needed for collection
  • Deductible typically applies
  • Determine value after loss
  • May have sub-limits for collectible classes
  • Policies differ by company

Scheduled all risk coverage
  • Sometimes called Fine Arts or Valuable Articles
  • Is in addition to homeowners policy
  • Predetermined or agreed amount (losses are
  • Each item listed individually (an appraisal may
    be necessary)
  • Typically includes breakage coverage for fragile
  • Typically automatic coverage for new acquisitions
  • Typically no deductible
  • Markets may change and client may become
    over/under insured

Blanket All risk
  • Written on total dollar amount
  • Items not individually listed
  • No deductible
  • Breakage coverage for fragile items
  • Burden of proof of value falls on insured (In
    event of a loss an appraisal may be crucial
    and/or necessary)
  • Per-item dollar limit (many times set at 2500
    unless increased based on client needs, or is
    combined with a scheduled policy)

Art title insurance
  • Art Provenance/Chain of Title Risks
  • Theft - contemporary or historical (e.g., WWII)
  • Illegal import or export
  • Classic Title Risks
  • Security interests
  • Creditor liens 
  • Authority to sell
  • Coverage is for the face value of the policy plus
    the cost to defend against a claim.  
  • Appreciation of the value of the art can be
    addressed via policy endorsement. 

Art as an investment
  • Membership or Education Questions
  • Call 312.981.6778

Art and antiques as an investment
  • Three Schools of Thought
  • Buy Art for the Love of the Art
  • Buy Art as an Investment
  • Buy for Cultural Significance

Art and antiques as an investment
  • For Financial Returns
  • Emerging Artists
  • Art From Emerging Countries
  • Portfolio Diversification
  • Alternative Investment
  • Undervalued and un-identified objects
  • Buy and Hold (Long term investment strategy)
  • Buy and Sell (typically contemporary art which is
    has a more volatile trend, than other segments
    such as old masters)

Art and antiques as an investment
  • Passions Investments
  • More than a traditional financial investment
  • financial return
  • Enjoyment of ownership
  • Potential Tax Benefits (i.e. foundations)
  • Social Benefits
  • More than philanthropy
  • Socially responsible
  • Involvement beyond financial such as decisions,
    participate in the management, etc. far more than
    a straight-forward charitable donation in the

Art and antiques as an investment
  • Investing in Art
  • Art is a commodity, with risk and volatility
  • Requires knowledge and
  • Buyer Beware Research, know value and what the
    artist is known for
  • Additional cost of ownership/buying/selling such
    as appraisals storage, insurance, maintenance,
    and auction or gallery fees
  • Invest in art through an art fund
  • Insurance and possibly art title insurance
  • Estate Planning (trusts and foundations)

Art and antiques as an investment
  • If you are a novice or even a seasoned pro
  • Research
  • Train your eye
  • Be an informed and savvy buyer
  • Hire an art consultant
  • Hire a qualified and experienced art appraiser
    such as a designated member of the International
    Society for Appraisers

Art and antiques as an investment
  • Mei Moses All Art Index repeat sales index

Art and antiques as an investment
  • Given the recent prices at the top of the market,
    there is more interest from collectors,
    investors, banks, wealth managers, estate planner
    and the IRS to look at art as an investment

Francis Bacon, Three Studies of Lucian Freud,
oil on canvas, in 3 parts, painted in 1969, sold
in Nov, 2013 at Christies NY for a record price
of 142.4 million
Why hire an ISA appraiser
  • Membership or Education Questions
  • Call 312.981.6778

Isa appraisers
  • ISA Appraisers have all of the necessary
    appraisal skills, including
  • Connoisseurship
  • Experience
  • The professions gold standard of Appraisal

Isa appraisers
  • ISA has three designation levels, our highest and
    most demanding level is the
  • ISA Certified Appraiser of Personal Property

Isa appraisers
  • The other two ISA Designation Levels are
  • ISA Accredited Member (ISA AM)
  • ISA Member (ISA)

ISA and Connoisseurship
  • Product knowledge acquired through hands on
  • Not necessarily classroom related 
  • Hands on study, examination and comparison of the
    relevant material over such a sufficient period
    of time that the appraiser is able to effectively
    discern the relative quality, condition,
    craftsmanship, market level and
    authenticity/authorship, if applicable. 
  • Competent to pass critical judgments in an art,
    particularly one of the fine arts, or in matters
    of taste

ISA and Experience
  • Appraisal Experience
  • Theory
  • Principles
  • Methodology
  • Report Writing
  • Observation of Property
  • Product Experience
  • Practical Contact
  • Comparison of objects
  • Identification

ISA and Appraisal Training
  • ISA Appraisal and Educational Programs are
    considered the best in the profession, including
  • Appraisal Theory
  • Appraisal Methodology
  • Appraisal Principles
  • Testing
  • Peer Review
  • Requalification
  • Classroom Programs
  • On line Learning Management System Opportunities

Hire an Isa appraiser
  • Select from the best trained and widest network
    of personal property appraisers.
  • ISA Appraisers, the GOLD STANDARD for personal
    property appraisers

Your firm
  • List Experience Qualifications

The End
  • Membership or Education Questions
  • Call 312.981.6778

The appraisal firm
  • Contact info here

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  • Call 312.981.6778

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