(Frederick, MD – November 13, 2000) – Citing numerous favorable comments by those in attendance at the recently-held National Conference of the Appraisers Association of America (AAA), Association of Online Appraisers (AOA) Sec./Treas. David Maloney, ISA CAPP, stated, "Understanding that online appraisals can be prepared in conformance with USPAP, and that they can have a positive economic and professional impact on an appraiser's business appears to have now resulted in widespread acceptance of online appraisals and of the online appraisal standards that are being promoted by the AOA."

Anxiety over the impact of online appraisals prevailed at the group's 1999 gathering; however, appropriately entitled "Appraising in the 21st Century: Shifting Perceptions and Changing Realities," the AAA Convention-goers in the year 2000 reflected a fresh perspective and appreciation for the possibilities of the relatively new paradigm of appraising over the Internet.

A panel moderated by Stephen Vincent (senior correspondent for Art & Auction magazine) addressed "Appraising On-Line." Panel members included Leslie Hindman (Eppraisals.com), David Maloney, ISA CAPP (AOA), Bob Simon (Past-Pres. of AAA), John Weltman, Esq. (art litigation attorney), and Victor Weiner (Ex. Dir. of AAA).

Hindman described the online appraisal service Eppraisals.com. Despite the web site stating that it provides "affordable online appraisal(s)" of "the fair market and replacement value of the object," the site states that their "Eppraisals" are "not the same as an appraisal" but rather are instead "an expert opinion."

"Eppraisals' reports are not written to any recognized professional appraisal standard of practice," Maloney later noted, "and most professional appraisers are prohibited by their parent societies from writing appraisals which do not conform to the Uniform Standards of Professional Appraisal Practice (USPAP)." Some appraisal organizations such as the International Society of Appraisers have adopted online appraisal guidelines which are USPAP compliant and which do conform to the standards of the AOA.

Maloney focused primarily on the flow chart (www.AOAonline.org/1b_1.htm) he designed as part of his Complete Online Course in Personal Property Appraising (www.AOAonline.org/lintro.htm). Says Maloney, "The chart helps appraisers understand 1) the many issues that impact on doing appraisals that make use of photographs as well as those done online, 2) how to limit their liability by using due diligence as illustrated by the flow chart, 3) how to do online appraisals in compliance with USPAP, and 4) when to refer an appraisal to a land-based, traditional appraiser." Attorney Weltman stated, "I am most pleased with what the AOA has done. The AOA has made the biggest effort to conform to USPAP. Its Standards limit the [online] appraiser's liability." 

Simon and Weiner introduced a proposed term "Professional Opinion of Value (POV)" as a substitute for "appraisal" and as a means by which AAA members might be able to skirt their societal obligation which requires all appraisals to be prepared in accordance with USPAP.

Weltman, Maloney as well as several audience members including Mark Delfs, CEO of AppraiseItNet.com, a provider of online appraisal services, cautioned against the use of the term POV which they noted would expose the appraiser to increased liabilities and which, Maloney said, was in direct conflict with USPAP. Maloney pointed out that USPAP itself defines an "appraisal" as "an opinion of value" and that USPAP states, "The use of other nomenclature (e.g., analysis, counseling, evaluation, study, submission, valuation) does not exempt an appraiser from adherence to the Uniform Standards of Professional Appraisal Practice." Maloney stated, "A POV, therefore, is in reality an "appraisal" and should be treated as such. It should be called an appraisal, and it should be prepared in accordance with professional standards for the protection of the appraiser as well as for the good of the client.”

"The AOA is critical to online appraisals reaching broad consumer acceptance," said AOA Pres. Mark Stuart. "As evidenced by the new acceptance of online appraisals by in-the-trench professionals, well-designed professional standards of practice are helping to develop confidence in this new form of appraisal service. The success of the AOA will benefit all those involved in offering and receiving online appraisal services, and we are proud to be a part of this important effort," he said.

For more information, contact the Association of Online Appraisers at 301-228-2279, email info@AOAonline.org, or go to the AOA web site at www.AOAonline.org.