Appraisal Witness: Qualified Expert

Appraisal Witness: Qualified Expert

Archive for the Category 'Personal Property Appraisal'

Appraisal Reform for Reviews

Wednesday, April 30th, 2008

Appraisal Reform has swept the nation with The Federal Reserve directing the broom at our local and national banks. These financial institutions now must have independent, effective appraisal and valuation programs. Furthermore appraisers performing reviews must have the expertise and knowledge to comply with the Federal Reserve’s appraisal guidelines and regulations as outlined in The Uniform Standards of Professional Appraisal Practice as stipulated by the Appraisal Foundation. Durkin Valuation Associates provide appraisal review services that are professional, qualified, independent, and compliant with the 2012-2013 government guidelines.

Appraisal reform for reviews should determine the risk of the transaction, whether the process by which the collateral valuation is obtained ensures quality and independence, and whether the appraisal or valuation is appropriate for the transaction, according to new banking guidelines. The scope of the appraisal assignment which is set forth in the engagement letter must be consistent with the valuation or appraisal report. The Federal Reserve comments that post-funding evaluations of appraisal quality for some of their greater-value transactions or higher-risk transactions as a control to assist in detecting valuation problems is used by some banks to augment routine appraisal reviews.

Durkin Valuation Associates are experienced in every type of appraisal review procedure, appraisal reviews, and the latest USPAP requirements for review appraisers. Each appraisal, appraisal review, appraisal report, consultation or valuation is performed within the most up to date laws, by our qualified, Senior Professional Appraisers that are governed by USPAP, who also adhere to the highest ethical unbiased codes of our appraisal associations, ASA, NAPA and GPPA. Seventy years of combined valuation experience of 7 senior appraisers offering professional appraisal services nationwide. We realize that our work may be reviewed by banks, attorneys and courts. Every appraisal is compiled with the anticipation that this appraisal could be litigated. Every appraisal by Durkin Valuation Associates is prepared by an Expert Appraisal Witness who is prepared to give irrefutable testimony in defense of his valuation report.
Call (617) 720-0332

Expert Appraisal Witness
  1. (required)
  2. (valid email required)
Please answer the Human verification question.
 

cforms contact form by delicious:days


[tag]appraisal reform,appraisal review,valuation,appraisal[/tag

Appraisal Witness Frequently Asked Questions

Saturday, March 29th, 2008

Appraisal Witness FAQs

What is an appraisal witness?

    An expert appraisal witness is an appraiser who is accredited, compliant with the latest government USPAP rules and laws, an expert who has testified in litigation environments (deposition, courtroom, mock trial, and administrative hearings) and has been deemed by the Judge to qualify to testify on matters pertaining to appraisals. An appraisal witness is a person that has specialized training, education, or experience that has allowed them to develop skill or knowledge in valuations, so that they can form an opinion that will help the fact finders of the case.

What is an accredited appraiser?

    An accredited appraiser is a person who has fulfilled their qualifications to be an appraiser through experience, education or specialized training and has successfully completed the government-sponsored 15 hour USPAP course and passed the USPAP test with at least a 70 point score.

What is a certified appraiser?

    A certified appraiser is usually a real estate appraiser that is licensed by the state in which they reside. A certified appraiser is seldom qualified to appraise personal property.

When would I need an accredited appraisal?

  • You should always seek an accredited appraisal, if there is the slightest chance that the value of the assets appraised will be contested or that the appraisal will appear in court and need to be defended.
  • You will need an accredited appraisal, if you deal with the IRS or any government agency that will review your appraisal.
  • You will need an accredited appraisal, if a bank or lending institution will use the appraisal in conjunction with the lending of moneys.
  • You will need an accredited appraisal in the case of divorce, mergers, partnership dissolution, liquidations and for the valuation of machinery and equipment of public corporations each year, such as power and light companies.
  • All donations that exceed $5,000, will require an accredited appraisal attached to your tax return to qualify as a legitimate deduction.

What kind of appraisal, do I need to satisfy the IRS?

    Only an accredited appraisal will be excepted for the IRS and all Federal government agencies.

Can I get an appraisal from my CPA or auctioneer?

    You can get an estimate of value from any person or authority of your choice. However, to get an appraisal from any person who by law holds themselves out to be an appraiser, this individual must meet the federal qualifications of accreditation and must have taken the government 15 hour course and passed the government USPAP test within the last two years.

What are the new laws that apply to appraisers?

    Federal rules of evidence 702 require that each individual that qualifies as an appraiser must have met the specialized training, education or experience requirements, and must have taken the 15 hour current USPAP course and passed the test. Individuals that hold themselves out as appraisers without these qualifications can be fined $5,000 and a percentage of the over or under valued items appraised.

What is the difference in a real estate and personal property appraiser?

  • A real estate appraiser is licensed to appraise homes, commercial buildings and land. A residential appraiser usually charges $300- $350 to appraise the house and lot.
  • Personal property appraisers are accredited to appraise tangible and intangible objects that are usually movable and require different qualifications to appraise than land and buildings. An example of personal property, would be antiques, machinery and equipment, businesses, vehicles, paintings, coins & gems, logos, trademarks, copyrights, client lists, intellectual properties, boats, pension plans, trusts, annuities, stocks & bonds, collectibles, professions (attorney, doctors, CEOs), careers(actors, comedians, models, professional sports etc.), timber, animals, guns and all chattel. If you can think of an object that is tangible or an intangible item that can be owned that is not included in this list and that does not include land or buildings that are secured to the land, then it also qualifies as personal property. The personal property appraiser usually charges $175-$500 an hour.

Durkin Valuation Associates have the experience, 70 combined years, the accreditation, 2012 -2013 USPAP compliant, and continued education, ASA, NAPA & NAA to exceed all of your appraisal needs including testifying as an expert appraisal witness should your appraisal need irrefutable defense. Call us at (617) 720-0332. Or contact us at:

Expert Appraisal Witness
  1. (required)
  2. (valid email required)
Please answer the Human verification question.
 

cforms contact form by delicious:days


appraisal faqs,accredited appraiser,Appraisal Witness

Technorati Tags: , ,

A Personal Property Appraisal

Tuesday, February 12th, 2008

Personal property appraisal covers all property that is not real estate even if the property belongs to a corporation, business, trust or organization. The first thing an appraiser must do is identify the purpose (business valuation, merger, acquisition, loan, insurance, decedent estate, divorce or many other reasons) for the appraisal, determine the scope of work required to meet the purpose, then research and analyze the purpose in order to develop an appropriate appraisal. SINCE Congress has required the USPAP (The Uniform Standards of Professional Appraisal Practice) to be applied when appraising personal property, few appraisers have studied USPAP or passed the government test that qualifies them to continue in the appraisal business. Durkin Valuation Associates have numerous appraisers from 30 years experience appraising and we are willing to testify as expert witnesses anywhere in the world. Telephone: (617) 720-0332

In developing a personal property appraisal, the appraiser MUST NOT:

  • Deliver appraisal services in a careless or negligent manner, such as making a series of errors that alone would not be significant, but together adversely affect the appraisal;
  • Commit a substantial error of omission or commission that notably affects the appraisal,
  • Be bias in any manner,
  • Agree to take a percentage fee depending on the outcome of the appraisal use.
  • In developing a personal property appraisal, the appraiser MUST:

  • Determine the scope of work according to the Scope of Work Rule;
  • Be informed of, understand and employ the accepted methods and techniques for producing a credible appraisal;
  • Identify what the appraiser’s opinions and conclusions will be used for;
  • Identify the type and definition of value;

    If market value is to be used, determine whether the value is to be the most probable price.
    If the value is to be based upon non-market financing or financing with unusual conditions or incentives, the financing terms must be clearly stated, along with the appraisers opinion regarding the contribution or negative influence the financing conditions place upon the value, determined by an analysis of the relevant market data including identification of the client and other intended users;

  • Identify the characteristics of the property that are relevant to the type and definition of value and the intended use of the appraisal, including:
  • The ownership interest to be valued;
  • The characteristics used to establish the value and identity of the item and the methods of identification;
  • The characteristics used to establish the quality of the item (including separate component parts where applicable); and
  • Any other physical and economic features that have a material effect on the value;
  • Identify any extraordinary assumptions necessary in the assignment if the following conditions or circumstances warrant an extraordinary assumption:
  • It is required to properly develop credible opinions and conclusions;
  • The appraiser has a reasonable basis for the extraordinary assumption;
  • The use of the extraordinary assumption results in a credible analysis; and
  • The disclosure requirements set forth in USPAP for extraordinary assumptions are followed by the appraiser.

  • Identify any hypothetical conditions required to adequately complete the assignment if the following conditions or circumstances warrant a hypothetical condition:
  • Use of the hypothetical condition is obviously needed for legal purposes in order to perform a reasonable analysis or comparison,
  • Use of the hypothetical condition results in a credible analysis; and
  • The disclosure requirements of the USPAP for hypothetical conditions are followed by the appraiser.
  • Durkin Valuations (617) 720-0332

    Expert Appraisal Witness
    1. (required)
    2. (valid email required)
    Please answer the Human verification question.
     

    cforms contact form by delicious:days


    personal property appraisal,USPAP

    Technorati Tags: ,

    Copyright © 2008, 2009, 2010, 2011, 2012 appraisalwitness.com All rights reserved.
    http://appraisalwitness.com/