AOA
FAQ
What
is the Association of Online Appraisers™?
The Association
of Online Appraisers is
a not-for-profit, independent professional
association for personal property appraisers
who are involved in offering online
written personal property appraisal
reports (either as individuals or via
an appraisal management company) through
the use of digital images and Internet
online reporting. The
Association also welcomes traditional
appraisers as well as those who support
the precepts of the AOA,
but who do not perform online appraisals
themselves. Learn
more about becoming a member of
the AOA.
The goal of the AOA is
to develop, maintain and promote standards
of professional practice for the online
appraiser. The AOA feels
that such standards will give guidance
for practitioners and will at the same
time provide the public with a gauge
by which to measure the adequacy of
the online appraiser's work product. Top
What
is an Appraisal Management Company?
An
Appraisal Management Company (AMC)
offers appraisal services to the public
by making use of professional appraisers
acting as independent contractors;
a fee-sharing arrangement compensates
both the AMC for their marketing efforts
and the appraisers for their expertise. Top
What
is an online appraisal?
Online
appraisals are electronically-transmitted
personal property appraisal reports
based on client-provided digital images
and written descriptions. Top
How
much does an online appraisal cost?
If
obtained through an Appraisal Management
Company, basic online appraisals usually
cost between $20 to $40 per item. However,
online appraisals can also be obtained
by working directly with a professional
appraiser. In such cases, each appraiser
sets his or her own fee, so it would
be best to obtain a quote directly
from the appraiser before contracting
for services. Top
Should
online appraisals be written to any recognized
standards?
Most
certainly. The Uniform Standards
of Professional Appraisal Practice (USPAP), promulgated
by The
Appraisal Foundation of Washington,
DC, clearly states that any opinion of
value offered by one holding him/herself
out to be an appraiser is an appraisal,
and as such
should be performed in accordance with USPAP.
The AOA is
in agreement with The Appraisal Foundation,
and has developed its own online-specific
and USPAP-compliant
standards with which members agree
to conform. In addition, the AOA has
developed a Code
of Ethics to guide its members in
ethical behavior in the course of conducting
online appraisals. Top
Is
this a new type of appraisal?
No.
Appraisers have done appraisals using
photographs for many, many years. Doing
so is often required by the circumstances.
For instance, if an item is stolen or
destroyed by fire, photographs are frequently
invaluable to arriving at a value conclusion.
Indeed, the IRS Art Advisory Panel uses
photographs extensively when reviewing
the accuracy of a taxpayer's claimed
deduction for the charitable contribution
of works of art. The only difference
with online appraisals is that the images
are now digital in form. But whether
using contact print photographs or digital
images, it is always critical that the
appraiser note within his appraisal report
any extraordinary assumptions being made
because of the inability to personally
inspect the item in question. Top
How
can I use my online appraisal?
Unless
otherwise stated within the report, only
you, the client, can use your online appraisal.
Typical intended uses for online appraisals
include gathering information such as identity,
value and history in contemplation of selling
or buying an item. Another use would be for
personal planning. For instance, one may
wish to equitably divide several items of
personal property among a number of children. Online
appraisal can help support a claimed deduction
for a non-cash charitable contribution of
less than $5000, and can assist in the fair
and equitable settlement of a transit-related
or insurance casualty loss damage claim.
The use of online appraisals are also valid
in situations in which the use of photographs
have traditionally been considered a typical
appraisal practice, including, but not limited
to damage claims or casualty losses where
the property is no longer available for inspection.
Do
not use an online appraisal for functions
requiring a more traditional appraisal
in which the appraiser must have the
opportunity to personally inspect the
property. Uses requiring this more formal
(and necessarily more costly) appraisal
process include obtaining insurance,
claiming an IRS non-cash charitable contribution
deduction of over $5000, determining
estate tax liabilities, for divorce,
and for any function in which litigation
is a possibility. Click
here to learn how to contact a professional
appraiser for a hands-on inspection and
appraisal report. Top
Who
appraises the items?
There
is no licensing requirements for personal
property appraisers, so you should interview
the individual appraiser or review his or
her professional profile before making a
selection. The online appraiser you use should
have experience in his/her area of specialization,
and should have training in the theory and
principles of online appraising.
Membership
in the AOA helps
ensure that the appraiser is a professional
in good standing, has at least three
years of appraisal or market-related
experience within the area of specialization,
will abide by a Code of Ethics, and will
prepare online appraisal reports in accordance
with a recognized standard. Top
Will
the online appraiser authenticate items?
No.
Online appraisers cannot authenticate.
Authentications can only be performed
by experts who can personally examine
and, if necessary, perform tests on the
item. Online appraisals are based on
the readily apparent identity of the
item being appraised, i.e., what is immediately
apparent to the appraiser from the information
that has been provided. No further guarantee
of authenticity, genuineness, attribution
or authorship is represented or possible
given the limited nature of doing appraisals
without personal inspection. Should issues
of authenticity be in question, the request
for an online appraisal should be declined. Top
Can
any item be appraised online?
While
virtually any type of personal property
can be appraised by the traditional appraiser
who has the ability to personally inspect
the item, not all items qualify for online
appraisals. Clients with non-qualifying
items should be referred to a professional
appraiser who can personally examine
the property. See below to learn
how to contact a professional appraisal
society for a free referral to a qualified,
hands-on appraiser.
While
many items of property can be professionally
appraised through the use of photographs
and digital images some types of property
simply should not be appraised online.
Examples of items that should not be
appraised online include:
- Items
requiring testing or certification
to prove identity or authenticity
- Items
in which questions as to condition,
identity or age exist and cannot be
resolved even with the use of extraordinary
assumptions
- Items
which are potentially so valuable as
to warrant a hands-on appraisal
Top
How
can I locate a professional appraiser?
When
seeking a professional appraiser to conduct
a formal appraisal of your personal property,
choose one who is not only knowledgeable
about the items being appraised but who
is also educated, trained, and tested
in appraisal theory, principles and techniques.
To locate a professional appraiser in
your area, contact one or more of the
following:
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