FEATURED ARTICLE

Quality Condition Adjusted Mean Methodology: A Comparative Valuation Tool for the Appraiser
This paper explores the process of using a quality/condition adjusted mean methodology (Q-CAMM) to determine value of a subject property. A quality/condition adjusted mean regulates comparable values based upon condition level and quality points, and arrives at a final value conclusion relative to the subject property’s intrinsic features and state of preservation. Q-CAMM continues to rely upon the personal opinion and experience of the appraiser while introducing additional mathematical components to basic statistical averaging. Click the image to read the article by Todd W. Sigety, ISA CAPP.

FEATURED ARTICLE

Reconceiving Connoisseurship, by Carol Strone
Connoisseurship is a dead language and a dead art. Or so art theorists with disdain for aesthetic judgments would have us believe for some 40 years now. Indeed, connoisseurship has long languished — unfashionable and unpracticed — in academic circles and beyond. But still it matters for many people, and there are signs of a renaissance, even in the most unlikely realms of the art world. The time is ripe for reconceiving connoisseurship as relevant to furthering culture and seeing with maximum powers of observation that which humankind creates. Click the image to read the article by Carol Strone of Carol Strone Art Advisory, NY.

Journal of Advanced Appraisal Studies, 2010 - Call for Articles

Thursday, August 27, 2009 Reporter: Todd W. Sigety, ISA CAPP 0 Comments

The Journal of Advanced Appraisal Studies is quickly becoming the publication of choice for personal property appraisers. It is an annual journal written and edited specifically for personal property appraisers. It has been positively reviewed in Maine Antique Digest (click HERE to read the review) and endorsed by Wendell Garrett.

Original research articles, reviews , and discussions of professional appraisal issues and concerns from a variety of perspectives, theories, approaches, and methodologies are welcome. The next edition of The Journal of Advanced Appraisal studies will be published in March, 2010. Submission deadlines is fall of 2009. The articles must be original works, not previously published and a minimum of 3,000 words.

We are interested in articles covering the following personal property topics:
  • Research Reports
  • Opinion Pieces
  • Interviews
  • Book Reviews
  • Ethics
  • Valuation
  • Authentication
  • Appraisal Theory
  • Appraisal Methodology
  • Marketing
  • Product Knowledge
  • Legal Issues
  • Conservation
For additional information and submission proposals on this exciting project contact the editor, Todd W. Sigety, ISA CAPP at toddsig01@gmail.com or 703-836-1020.



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Bienvenue a Montreal, October 2009 American Society of Appraisers Personal Property Conference

Wednesday, August 26, 2009 Reporter: Edith Yeomans 0 Comments

By Edith Yeomans, ASA

Are you tired of your staycation? Are you itching for a change of venue?

Would you like to nourish your inner Frenchman? Your inner Frenchwoman?

Then….BIENVENUE a MONTREAL October 29-31, 2009.

On day one feast your eyes on the McCord Museum of Canadian History collection of over 28,000 decorative art objects that document the material lifestyle of Montrealers, Quebeckers and Canadians in centuries past.

Begin this culturally enriching day with the Director of Collections, Madame Nicole Vallerie who will take you back in time and place to 18th/19th century Montreal.

Then immerse yourself in four small group curator-led behind the scenes tours of Canada’s Inuit and Aboriginal Art, costumes, textiles, fine art, decorative antiques, silver, porcelain, glass and furniture. Cap it off with the William Notman Photography Collection of Montreal as it looked in the period.

Dine in Montreal’s number one cultural arts cafĂ© and explore the McCord Museum book and gift shop, both considered premier spots for luncheon and gifts given in Montreal.

No need to fret if you didn’t see all 28,000 items. The McCord is a 10 minute walk from Loew’s Hotel Vogue and your conference badge allows you to return at leisure during the conference duration. (www.mccord-museum.qc.ca)

Tonight you step into history to dine in Old Montreal at Gibbys, located in the Youville Stables on what was once the south bank of the Saint Pierre River near the original Huron Indian settlement of Hochelaga. Parts of the building date from 1694, 1740 and 1850. (www.gibbys.com)



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Using Technology to Keep in Touch

Monday, August 24, 2009 Reporter: Collectorpro Software 2 Comments
One of the best ways I have found to keep in touch with prospects and clients is through regular communications. In this article I will discuss a couple of ways to keep track of your clients and keep in touch.

Keeping in touch with your prospects, professional peers, and clients is one of the best ways to obtain new clients, new business from existing clients, and new clients from referrals. Using an email list makes it easy to keep in touch. When considering using email for regular communications it is important to keep in mind these items:

Who is your target audience?
Remember that not just clients are targets for your emails. Contacts you have met at networking events, peer appraisers, attorneys, IRS employees, and prospective clients you have met.

It is all about content!
Nobody likes to get an email that is pushing a product or service. The content of your emails should be informative and show that you are an expert in your field. Consider providing information that your contacts may not have known if you had not sent the email. The idea is that over time, these reciepients will come to regard you as an expert in your field and when they need an appraiser, or someone they know, they will contact you. (To Read the Rest of the article click the Read More Link below)



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Tips for Smooth Sailing When Appraising Model Ships

Monday, August 24, 2009 Reporter: Suzanne Houck 1 Comment
by Suzanne Houck

Sometimes you attend a lecture where the information is so good that your notes survive year after year of “file thinning”. Once upon a time I attended a lecture by Sara Conklin, ISA, CAPP, an appraiser who specializes in all things nautical. The information she shared has served me well over the years giving me confidence in gathering appropriate information during onsite inspections and providing the knowledge to determine when I needed to seek the opinion of an expert. It is too good to keep to myself!

Proper Description:
Use the correct terminology. Vessels are the proper term for most everything that is upon the water. Don’t use the word “ship” unless it is a ship. A ship – short for “full-rigged ship” is a definite combination of masts and sails. You are safe if you say “vessel.” A tug and submarine are always “boats.” “Boats ride on the deck of ships” is another old chestnut that tells you the size difference.

When describing the vessel refer to port (left) and starboard (right) as you face the bow, the front pointy end. Stern is the back end, behind you.

Details to look for:

The Hull:
Is the hull carved from a single hunk of wood (low end), slices of shaped wood, or, is it plank on a frame (the best)? You can sometimes tell if the hull is plank on frame if it has little tiny planks along the entire side and small nails covered with plugs of wood (called treenails) all lined up. It can be impossible – and is dangerous -- to remove the cases from atop ship models. This observation can be done looking through the glass. In less valuable models these hull planks are drawn on.

Hulls can be “coppered” which means tiny pieces of copper are nailed onto the wood. Sometimes it is a copper strip that is stippled to represent nails. Coppering the bottom of a hull reduces the work on a plank on frame hull but can be also labor intensive depending on the technique. Individual smaller pieces of copper attached to the lower hold down to the keel (the backbone of the vessel) is time consuming which means more valuable. (To Read the Rest of the article click the Read More Link below)



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Establishing Your Appraisal Library: Shelving

Saturday, August 22, 2009 Reporter: Jerry Sampson 0 Comments

You can have the greatest library in the world, but, if you can't find that particular volume then your library is worthless. The number one thing you must have when starting this business is some type of strong shelving and proper storage.

You might be starting your appraisal career with a dozen volumes, or you might be established and have a library of thousands of titles. Either way, you've got to have proper storage / shelving.

Your ultimate goal is to have your own place. I understand this is not always possible. The author Virginia Wolfe is quoted as saying she "hoped in the future that all women would have a room of their own." That's what we as appraisers should strive for - our own room, our own place, to store our work.

Be creative with where you are at right now. You might want to start with a bookshelf or a bookcase in a corner of a room. Explore the options of a finished basement, space under a staircase, or in an unused guest room. Whatever direction you make, be sure that your shelving is strong! Sure, right now, it can hold a dozen books but what about in the future? What about when you collect several hundred? All bookcases, shelves or units MUST be firmly bolted to the wall, into masonry, or into wood studding.

DRY WALL IS NOT SECURE FOR BOLTING!

Make sure that ALL shelving is strong and re-enforced on the sides. An extra feature, but one that I don't really like is adjustable shelves. Just make sure that these are bracket arms that lock into slots in the back, that extend to the depth of the shelf. Little metal or plastic tabs on the sides to hold the shelf up will not last for very long. (To Read the Rest of the article click the Read More Link below)



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Modern American Designers

Wednesday, August 19, 2009 Reporter: soodie :: 0 Comments
As appraisers, we know the relationship between people and furniture is never static. The value and popularity of certain objects are constantly in flux. The nineteenth-century middle-class American home was all about objects, and heavily influenced by European aristocratic models. The pursuit of comfort and advances in technology and materials led to significant changes in the aristocratic idiom. But then things began to change.


In the twentieth century, modern furniture design was transformed by innovation and the influx of new styles. Much of the influence came when emigrant designers fled Europe eager to express and give vent to their visions. They incorporated new techniques, materials and methods to create a distinctly American style. While modernism was not created in America, it took on a look inimitably its own.


Over the next few months, I thought I would present a few modern designers’ work; explain what type of furniture maker they were and how their work has been doing in the market. Many of you will already know these designers and others may only be familiar with their names. Regardless, change is always going on, and we need to be aware of many different areas.


When modern design first hit America, the reception was mixed. Some people embraced these changes enthusiastically, others weren’t so sure. Modern design experienced highs and lows throughout the remainder of the century. The simplicity and popularity of mid-twentieth century design gave way in the 1980s under the Ronald Reagan influence to a more classic historical style. In clothing, Ralph Lauren brought back the quiet elegant look of restrained traditionalism, and the old money English country manor visage was made chic again by New York's "Prince of Chintz," Mario Buatta as he put a fresh twist on paneled rooms, Queen Anne furniture and floral chintz drapery treatments. Creative furniture designers were pushed to the fringes in mainstream America. (To Read the Rest of the article click the Read More Link below)


In the early 90s, there was a renewed interest in furniture from the mid century. Designers who made mass produced pieces such as Charles and Ray Eames, Eero Saarinen and George Nelson, became highly sought after. After their creations reached high prices at auction, the trend expanded. By this decade, names such as George Nakashima, Vladimir Kagan and Paul Evans began to emerge, as well as other studio designers whose work was never mass produced. Their market developed rapidly as the internet gave these designers more exposure and the economy expanded to include younger collectors. In the past few years, designers such as James Mont, Tommi Parzinger and Karl Springer who produced custom designs have been elevated in the spotlight.


Internet dealer venues such as 1stdibs and auction houses began to specialize in featuring rediscovered designers from the past. Furthering this exposure, dealers, design magazines and internet blogs began to explore many of these designers, as well as many still relatively unknown in their attempts to present the freshest, chicest high-end vintage items. As a result, many items that would have been considered nice, high-end furniture items passed over by most shoppers are now beginning to be sought after. In the years to come, it will be interesting to see who else will be uncovered and appreciated once more.



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Think Global and Think Local

Thursday, August 13, 2009 Reporter: Stephen P. Sweeting 0 Comments
By Stephen P. Sweeting, ASA

As appraisers we routinely discuss market conditions within our appraisal reports. Depending on the type of report, discussions might range from a brief overview of the relevant market in a summary report to a more detailed description and analysis included in a self-contained appraisal document.

In this age of globally-connected marketplaces and international reporting it is not difficult to find generalized overviews of market conditions in sources like Artnet, Artfact, Art and Auction and other on-line and print publications. In the appropriate circumstances, sources like these can provide an excellent foundation for discussing international market conditions within the context of an appraisal report.

Where these excellent sources sometimes fall down, however, is on the coverage of local market conditions. To explore these it is essential to be plugged into what is going on in your own community. Attending auctions, browsing in commercial galleries and shops, and discussions with dealers, auctioneers, collectors, and other appraisers are obvious sources for intelligence of this order.

But it is also important to pay attention to local stories published in print and on the Internet by daily newspapers—some of which might have ramifications on the marketplace. An interesting example of an arts-related business story that could have a real effect upon a local and a regional market currently is being played out in Toronto. After a long-term business relationship Sotheby’s Canada and Ritchies Auctioneers are effectively “divorcing” due to alleged non-payment issues. According to reports in the press, a significant number of consignors had not been paid by Ritchies’ accounts department and Sotheby’s had to step in to rectify the situation.

Over the past eight years, Sotheby’s Canada and Ritchies have been linked through an auction services agreement with the local auctioneer handling the international firm’s bi-annual sales of Important Canadian Art. As one of the “big three” in the Canadian art auction scene, the Sotheby’s-Ritchies combination produced a series of impressive results, including the record-breaking sale of a remarkable Paul Kane canvas in 2002 for a hammer price of CAD $4.6 million and multiple successes in the Canadian Contemporary Art field. Although "Sotheby’s in Association with Ritchies" had settled into a second place position behind another auctioneer (see my July 11, 2009 post, Canada's First "PoMo" Auction House Navigates Soft Art Market), they have remained a potent force in the auction world in Canada. (To Read the Rest of the article click the Read More Link below)



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Eight Guidelines to Avoid Loss to Estate Personal Property From Commonly Made Mistakes

Thursday, August 13, 2009 Reporter: Nancy 2 Comments
By Nancy Burke Bosch, ISA AM


I am sharing this brief article to the Appraiser’s Post as a template for other appraisers who help people downsize or consult with trustees and heirs in regard to estate liquidation. This article is adapted from a handout I give to clients, trustees and heirs as part of a comprehensive estate consultation, ideally conducted prior to death or shortly after. I also use a variation of it as a mailer to former insurance appraisal clients. The handout addresses issues that have come up in various estates I have handled and is a very helpful handout to stimulate additional business. I have also used it for mailings to Trust Departments of banks and Estate Attorneys. Appraiser’s Post members and readers are welcome to adapt this information for their own use. I ask that you, of course, personalize it for your company and substitute your experiences and examples for mine.


“Eight Guidelines to Avoid Loss to Estate Personal Property from Commonly Made Mistakes”

On average an ordinary home contains approximately $10,000 worth of personal property. A more upscale home with fine art, antiques, fine china, silver and other appreciating personal property often contains upwards from $60,000 - $1,000,000 or more worth of goods. Several good paintings alone can total $100,000. We at Bosch Appraisal and Estate Services seek to educate our clients and estate professionals to give estate personal property the attention it deserves.


Guideline Number One: Call an independent appraiser to identify valuable items of personal property before you do anything else. We suggest calling a qualified appraiser of personal property as the FIRST thing to do when assigned with the important task of settling an estate. Do not throw anything away, sell or distribute anything until this has been done. If there are antique furniture items, oil paintings, works on paper, antiques, fine china, collectible porcelains, art glass, sterling silver, oriental rugs, leather bound books, jewelry, collectibles and other appreciating property in the residence of the deceased, the accumulative total can be considerable.


Be certain the appraiser you call is a member of an appraisal society that tests its members and holds them to a Code of Ethics. An appraiser should not offer to buy anything that they appraise, for to do so is a conflict of your best interest. Guideline Number Two: Do not sell an item to the person who has set its value. (To Read the Rest of the article click the Read More Link below)




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Avoiding Ethical Problems

Sunday, August 09, 2009 Reporter: Terri Ellis, ISA CAPP 0 Comments

I am the current Chair of the Ethics Committee for the International Society of Appraisers, and the committee members and I have been presented with quite a few different complaints over the years regarding members of our organization. I have come to the conclusion that most of these complaints could have been avoided with just a few precautions on the part of the appraisers. I'm sure these issues are covered in the core courses taught by our instructors, but it never hurts to be reminded of basic guidelines in our profession.

1. A well-written contract, signed by both parties, is the best insurance against problems later in the appraisal process. If you don't have one, ask someone who does, or get an attorney to draft one for you. My first question is if there is a contract when I start investigating a complaint, and I am amazed at the number of professional appraisers who omit this important step. If you have a contract specifying exactly what you will do, the client doesn't have to guess what comes next, and he or she feels comfortable with this knowledge. Of course, the contract also protects you when the time comes to collect your fees.

2. Communicate with your client! This is another big problem that shows up in our complaint files. If you are going to have trouble finishing the appraisal within the agreed upon time frame, call the client and discuss it with him. I can understand people's frustration when I try to contact appraisers myself about complaints and don't get answers to my inquiries. A lack of communication is never a good thing.

3. Do not misrepresent your credentials. This is the most common complaint we receive, and usually stems from advertising using misleading or fraudulent status in the appraisal profession. Our organization takes this very seriously, and does its utmost to weed out the false ads, and keep our credentials records up to date.

I am not even going to mention the basics of ethical behavior, because I know that most appraisers do their best to uphold high ethical standards. We do receive serious cases with breaches of ethical conduct, but most of the complaints that come in could have been avoided with a little common sense and courtesy. Let's be careful out there!

Terri Ellis, ISA CAPP




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Appraisals, Competency, Hierarchies and The Peter Principle

Saturday, August 08, 2009 Reporter: Todd W. Sigety, ISA CAPP 8 Comments
By Todd W. Sigety, ISA CAPP

Appraisers are not all created equal. Many are true credits to the profession, while others may actually be doing more harm than they realize. Many appraisers have great and wide areas of knowledge as generalists, and others have more focused expertise and specialties. The ability to effectively and properly appraise personal property relies in great part upon competency, which includes due diligence, research and expert advice sought after leaving the inspection.

I raise this topic as I was recently on an assignment where the client had several examples of early American furniture. (Confidentiality issues were addressed with the client.) One piece was a classical mahogany card table, with figured veneers and unique carving on the central column and base. My issue and reason for this post is what the client told me the previous appraiser said about the table during an inspection several years ago.

The previous appraiser, and just for the record, a credentialed member of one of the big three appraisal organizations stated the top portion of the table was married to the base, and the base was probably not American. The appraiser also dated the card table around 1830. In my inspection I did not find any indication the top and bottom were married, and even though the base carving was unique, it did not cause me concern. In fact it is what made the table special. I dated the table near 1815, being purely American classical in style, construction technique, carving and design.

The identification of the table by the previous appraiser was clearly incorrect. Because of the error in identification the value assigned to the card table for insurance replacement cost was grossly undervalued. Just to be clear, I found a near exact table including a near identical carved base in a respected book on Philadelphia furniture with a full page color image devoted to the table. The book dated the table between 1810 and 1820. To add a little perspective, the book stated the card table was a “masterpiece of Philadelphia Classicism”. Certainly high praise. (To Read the Rest of the article click the Read More Link below)



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MARKETING IN A DOWN ECONOMY

Thursday, August 06, 2009 Reporter: Anonymous 2 Comments
by Francine Proulx, MS, ASA, ISA AM

By middle of next week, I will have no assignments on the books. Am I freakin’ out – YES but somehow the phone usually rings just in the nick of time – except last Fall when I had 1 month with absolutely no income at all. It reminds me of the old marketing adage for sole proprietors, “When you have the money, you don’t have the time, and when you have the time, you don’t have the money!”

So, how am I going to deal with it this time -- instead of putting on 15 lbs. like I did last Fall! For one whose their appraisal/consulting business is their sole support, it’s time to put the gear into third. As for me, I’m a list maker – feels SO good scratching things off it – so here goes:

1. Pull out those 2003 and 2004 client files and send a letter about updating their appraisal. The gist will be that it is important to know current replacement value for insurance – they may be paying too much – or fair market value for estate planning in case that time is near. Maybe it’s time to do that estate planning appraisal in the first place.

A former client’s CPA contacted me last year after the client had passed away and asked if it was appropriate to use a 6 year old insurance appraisal for the estate taxes (even though my report clearly states for “insurance coverage only”). Of course, you know my response. For the cost of updating the appraisal at Fair Market Value, the family saved $15,000 in taxes. I kid you not.

2. Every week the local newspaper lists home sales and every week I clip it and mark those that sold for $1 million or more – believe it or not, even though my condo lost 40% in value, there are homes that sell for that much today in this area! No better time to send a personal letter recommending the appraisal of their furniture, fine and decorative arts to protect their investment. (To Read the Rest of the article click the Read More Link below)



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The Objective Component of Comparable Price Adjustment

Thursday, August 06, 2009 Reporter: Robert J. Corey, Ph.D. 1 Comment
By Robert J. Corey, Ph.D.

Every appraiser faces a choice in the selection of comparables. As a rule, the best comparables are current comparables. However, as so often happens, the best choices of characteristically equivalent properties can have long time intervals between the date of the price realized and the date of the current valuation problem. Without market data adjustment, the age of the sale can lead to an apple-to-orange value conclusion. In this post, I would like to explore the use of index numbers as one example of an objective “age of sale” adjustment technique.

What are Index
Numbers?
Index numbers are quantitative measures of the change in prices over time. The most basic form of an index expresses the ratio of the price of a specific product or service in one period to the price of the same product or service in some other period. This simple index, called a “price relative,” is the ratio of two prices. Price relative illustrates the basic concept of index numbers but fails to solve the appraisal problem. Antiques and decorative arts are not commodities like gold or soybeans. Each object sold is to some degree unique and seldom provides the purchase and resale price needed to construct a repeat sale index like that developed in the Mei Moses® fine art indexes. We need an index that is a bit more sophisticated and flexible for our purposes.

Consumer Price Index (CPI)

The U.S. Bureau of Labor Statistics maintains the consumer price index (CPI). The CPI is a general index measuring the average change over time in the prices of a wide variety of consumer products. The CPI measures the purchasing power of consumer dollars by comparing what a mix of products and services costs today with the cost of the same mix at an earlier time. As a general inflation indicator, we can assume that changes in the CPI reflect inflation in the cost of antiques and decorative arts purchased by the average consumer. (To Read the Rest of the article click the Read More Link below)



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Establishing Your Appraisal Library

Tuesday, August 04, 2009 Reporter: Jerry Sampson 2 Comments

We appraisers know that there is no substitute for being in a fresh, current market. But there is something else for which there is no substitute either and that is our library. Your library will be a source of comfort and enjoyment to you. It will be a place for you to turn when you are confused, lost or unsure about an object. Yes, your library, if you develop it correctly, will quickly become a major focal point of your appraisal career.

Now I know that it sounds "old fashioned" in this day of technology, but there is really nothing like having a well-developed, accessible library. Oftentimes I talk with other appraisers who might not have as much experience as I do, and the one thing that I hear so often is " I don’t have much of a library; I use the computer." Well, that may be true and, of course, I do the same thing to some extent. But you will never be able to grasp and understand a subject just by reading about it on the Internet.

I’m going to title this series of blog entries "Establishing Your Appraisal Library." I’ll break this down into several chapters so it can be easier to absorb. Through the weeks we’ll cover such chapters as these and several others:

How do I acquire books for my library?
Proper storage and retrieval.
Hard back or soft back? Which is correct?
The dirty secret about price guides.
Magazines and other periodicals.
Databases and printed auction catalogs.
The importance of small papers.
When it’s time to dispose of a library.

Be on the lookout in the coming weeks for these topics. I promise that if you pay attention you’ll be able to create or refine your current library.
Remember, Knowledge Is Power, So Arm Yourself



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Journal of Advanced Appraisal Studies