the elements of a correctly prepared appraisal
Name & address of client in Letter of Transmittal
Purpose of the appraisal & intended use: IRS 8283 Donation, estate, equitable distribution, sale, insurance, etc.
Type of valuation used: retail replacement value, fair market value, marketable cash value etc. & definition.
Valuation approach used: cost estimate approach, income approach, market data comparison approach, etc.
Market in which valuation is applied; most common market (place).
How objects were acquired - especially for IRS purposes.
Statement of number of pages in appraisal.
Statement of professional qualification of appraiser(s). Curriculum Vitae.
Date of preparation of appraisal & date of which objects were viewed. Effective date of appraisal.
Statement of "disinterest" on the part of appraiser.
Statement that the appraisers fee is not contingent on appraised value of objects.
Statement that the appraiser has not been "disqualified" by the IRS (for IRS appraisals)
Thorough description of appraised objects. measurements & weights when applicable.
Statement of condition of appraised objects.
Provenance (if available).
Comparables & related analysis when necessary.
Brief biography of the artist when necessary.
Exhibition & publication history (if any).
Market analysis: generic market history & possible projections for future activity.
Firm statement of value - not estimates, except when followed by detailed explanations of qualifications.
Statement that the appraised object(s) correspond to description(s) listed in the appraisal.
Signature(s) of Appraiser(s) & Tax ID number(s) when appraisal is prepared for IRS purposes.
Statement of assumptions & limiting conditions.
Clear division of appraisal when more than one appraiser is involved. Who did what? Inclusion of CV of other appraiser