STANDARD 7.

In developing a personal property appraisal, an appraiser must be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal.

Comment: Standard 7 is directed toward the same substantive aspects set forth in Standard 1, but addresses personal property appraisal.

Standards Rule 7-1

In developing a personal property appraisal, an appraiser must:

1. (a) be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal;
2. (b) not commit a substantial error of omission or commission that significantly affects an appraisal;

3. (c) not render appraisal services in a careless or negligent manner, such as a series of errors that, considered individually, may not significantly affect the results of an appraisal, but which, when considered in the aggregate, would be misleading.

   1. (a) adequately identify the object(s) to be valued, including the method of identification;
   2. (b) define the purpose and intended use of the appraisal, including any special limiting conditions;
   3. (c) identify the effective date of the appraisal, clearly distinguishing the appraisal date from the report date when appropriate;
   4. (d) define the value to be considered consistent with the purpose of the appraisal;
   5. (e) value the object(s) by an appropriate appraisal method or technique;

   6. (f) collect, verify, analyze and reconcile such data as are available, adequately identified and described, to indicate a value conclusion;

      No pertinent information shall be withheld.

      Comment: These guidelines apply the concepts outlined in S.R. 2-2 to personal property appraisal practice.

      Standards Rule 7-3.

      In developing an appraisal of certain types of fine art, when applicable, consider and analyze the effect on value of:

   7. (a) any relevant damage or imperfections;
   8. (b) the importance of the object(s) as compared to other items of the same type and classification, or as relating to an artist's total work, or as enhancing other parts of a specific collection;
   9. (c) any historical factors (provenance) which would affect value;
   10. (d) the market acceptability of the style and scale of the object(s);
   11. (e) the utility, if any, in today's society as it relates to the originally intended use of the object(s);

   12. (f) any prior sales of the object(s) being appraised.

       Comment: This guideline sets forth recognized appraisal methods and techniques for certain types of fine art that are consistent with U.S. Internal Revenue Service requirements.

   Comment: S.R. 7-1 is identical in scope and purpose to S.R. 1-1.

   Standards Rule 7-2.

   In developing a personal property appraisal, an appraiser must observe the following specific appraisal guidelines: