Appraisal Foundation "Applauds" Kollsman Rulings

The Appraisal Foundation (AF) is becoming a strong public advocate for the personal property appraisal profession with a recent press release about the Kollsman decisions and the unequivocal promotion of qualified appraisers.  For complete disclosure, I am the Chair of the Personal Property Issues Committee for The Appraisal Foundations Advisory Council (TAFAC), but was not involved in the press release.

In the past the AF has promoted personal property through some published articles, online posts, press releases, brochures/info-graphics, speaking events and through their website linking to personal property websites.

This is all good, but it never seemed to be as consistent, timely and pro-active as many in the personal property community would have liked. Additionally, much material is what the marketing world calls "collateral material". Not to be dismissive of what has been done in the past, and from a foundational standpoint it is certainly needed. Although, over time, current content impacting PP appraising with informative and timely articles and press releases for public consumption and allied professionals is needed.

Should this new trend continue, and I hope it does, we can look to the AF making regular, active and timely press releases which inform the public and allied professionals on the importance of hiring qualified personal property appraisers and following proper appraisal standards, methodologies and principles.

If today's press release is an indication, we are now seeing an energized AF, fully embracing and promoting professional and qualified personal property appraisers. For instance, below are two great quotes from the press release on Kollsman which I think will get the attention of users of appraisers such as estate planners, attorneys and wealth mangers and promote the need for additional due diligence when hiring a personal property appraiser.

This is a game-changer for the primacy of the personal property appraisal profession, and for protecting consumers from biased and uninformed appraisals that can result in significant financial repercussions.

and

This also means wealth managers and estate attorneys now have a greater fiduciary duty to their clients to fully understand appraiser qualification criteria and appraisal standards when vetting personal property appraisal experts.

The promotion and advocacy for hiring qualified appraisers certainly is delivered strongly and succinctly in the press release.This all dovetails well with AF sponsoring appraisal organizations such as ISA, AAA, and ASA who are all working to promote their qualified appraisers. It is important to see AF promotional material and press releases issued in support of qualified appraisers and in support of USPAP and the AF/ASB Qualification Criteria and how they link and connect to current events and changes within the profession.

I would also like to thank AF Vice Chair Leila Dunbar, AAA, ISA AM and AF BOT member Cindy Charleston Rosenberg, ISA CAPP for their diligent work, advocacy and dedication in moving the AF to a more public position on professional personal property appraising. Also, many thanks to the AF staff and AF Director of Communications David Greer for promoting qualified personal property appraisers through their meetings and speaking events.

The press release from the Appraisal Foundation 

The Appraisal Foundation Applauds Circuit Court Ruling Affirming the Primacy of Personal Property Appraisal Profession

To protect asset value, consumers must select a

qualified and independent appraiser

(Washington, DC) July 24, 2019 –The Appraisal Foundation, the nation’s foremost authority on valuation services, applauds the recent 9th Circuit Court ruling that agreed with a U.S. Tax Court opinion that found an appraisal from an esteemed auction house is not adequate assurance of appraisal expertise or competency.

With this ruling, the professionalism of personal property appraisers has been confirmed for the second time by the judicial system in the United States. This is a game-changer for the primacy of the personal property appraisal profession, and for protecting consumers from biased and uninformed appraisals that can result in significant financial repercussions.

“The 9th Circuit Court ruling is the culmination of dedicated personal property appraisers who committed to establishing qualifications and standards to raise the professionalism of the personal property appraisal discipline,” said David Bunton, president of The Appraisal Foundation. “The Appraiser Qualifications Board (AQB) published the first qualification criteria for personal property appraisers in 1998, and updated it most recently as of January 1, 2018. It is also worth noting that standards for personal property appraising have been part of the Appraisal Standards Board’s Uniform Standards of Professional Appraisal Practice (USPAP) since its inception in 1987.”

“Consumers are the biggest beneficiaries of this ruling. Personal property assets will be better protected when a qualified and independent appraiser is retained to value one’s personal property assets,” said John Brenan, vice president of The Appraisal Foundation. “This also means wealth managers and estate attorneys now have a greater fiduciary duty to their clients to fully understand appraiser qualification criteria and appraisal standards when vetting personal property appraisal experts.”

The ruling arises from the case of Estate of Kollsman vs. Commissioner. The Estate hired a premiere auction house to conduct an appraisal of the estate’s art collection. The U.S. Tax Court rejected the valuation of the auction house expert because of bias and a lack of objective evidence. The IRS retained the services of a personal property appraiser, who met the qualifications established by the AQB and completed an appraisal that was compliant with USPAP.

The IRS appraisal expert found two of the paintings were significantly undervalued. The court also found that the auction house expert had a conflict of interest as the appraiser in question also sought to represent that paintings at auction. The 9th Circuit Court took the case up on appeal and agreed with U.S. Tax Court opinion.

Source: The Appraisal Foundation 

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