Report Type: Verbal or Written?
Some of the assignment types and intended uses listed above, such as insurance, court mandated or
IRS Tax Appraisals, would require a formally written appraisal report developed
in compliance with USPAP.
In some cases your personal property objects can be valued by an oral appraisal report at a significantly lower cost
than applies to a written appraisal report. An oral appraisal report must
also comply with USPAP like all other appraisal services.
and household goods can be valued by Novotny at a rate of 50-100+ items
per hour without research based upon his past daily study of most property types, and their market, as well as 35 years of active personal property market involvement as a dealer, estate sale agent or personal property appraiser and antiques appraiser. See how to prepare for an inventory and oral report.
Rare and valuable objects discovered may
require significant research. See an example
of how Novotny can solve a personal property appraisal problem without a formal written report.
Many objects have only nominal value. The intended use and needs of intended users would not require
costly research. Without research confirmation some oral opinions could
be subject to error. Clients must accept this risk since errors cannot
be discovered without research. Novotny will decline the valuation of
objects for which he lacks confidence without research confirmation.
Good judgment is a component of appraiser competence. Many appraisers
are not qualified to provide such a service. See Novotny's CV
to see Novotny's qualifications and visit About Us
to find out more about his general background.
Unique Challenging Appraisals
Novotny welcomes inquiries regarding
unusual, complex and challenging general antiques and personal property
appraisal problems. He will work carefully to determine the most cost
effective way to solve your valuation problem. He has carefully
USPAP compliant reporting options to apply to the presenting valuation
problem. He can provide the best and most cost effective reporting
option relevant to your specific needs and the needs of intended users
that you may identify.
Novotny recently developed a mass appraisal, statistical solution for large losses of personal property with two discrepant value opinions for the same objects. He developed
this statistical approach with the assistance of a statistician to
measure and predict a market value shift factor that he identified. The
methodology employs selecting a limited random sample which provides for
predictions to the population from which the samples were drawn with a
95% level of confidence
that the values are within 10% of their true value. Such a mass
appraisal approach provides significant savings in time and cost.
April of 2014 he published two articles in the Journal of Advanced
Appraisal Studies relevant to the Market Shift Factor that underlies the
statistical mass appraisal approach:
The Market Shift Factor in Valuation Disputes: A Basis for a Statistical Solution (2014)
Large Loss Claims – The Market Shift Factor: Justifications for a Statistical Solution (2014)
Novotny identified and analyzed a different market value shift factor
in order to appraise a totally unique, late 1940's, William Spratling
prototype silver necklace donated to LACMA and on exhibit there.
Spratling was fundamental in founding the Mexican silversmith center in
Taxco in the early 20th
century. His silver work incorporated Inca and Mayan iconography and
local materials. Taxco ultimately grew to over 600 silver craftsman. It
the center of the silver jewelry industry in Mexico. Vintage Taxco
silver jewelry is now highly collectible, especially unique and
exceptional examples by noted silversmiths such as Spratling.
At the end of WWII the government wanted to establish in Alaska
silversmith craft colonies for the Eskimos similar to those that had
succeeded in Taxco. The government asked Spratling to develop 200
prototypes and to begin training Eskimo silversmiths. He did as
requested. Two hundred silver prototypes were developed by Spratling
using only native Alaskan materials. The Alaskan experiment failed,
however, to be funded by congress and Spratling's prototypes are now
mostly in storage.
Novotny was challenged to appraise a totally unique, historically
significant, eye-catching and very wearable mask prototype necklace made
by Spratling of Alaskan silver, baleen and abalone that found it's way
onto the marketplace. Could it be compared to a similar, but
manufactured necklace by Spratling that is commonly sold in the open
market? No. None were comparable since none were protoptypes. No other
Spratling prototype could be identified in the marketplace. Novotny
asked himself: How would the value shift and how much value could be
added by being a prototype? To answer this question Novotny researched
another similarly renowned jewelry necklace designer that had also
created prototypes which subsequently and recently sold in the open
auction market. Novotny analyzed the other prototype sales and asked:
What is the most conservative shift that could apply when you compared
the best of the prototypes sold with the best of the comparable
manufactured examples sold? The most conservative market value shift
estimate that could be applied was a value shift factor of 3 to account
for the difference between a "prototype" price realized at auction and
the prices realized for other wise comparable manufactured necklaces at
auction . The average value of comparable manufactured necklaces by
Spratling was multiplied by three to account for the fact it was a
"prototype". By the way this value shift was only 129% higher than the
price actually paid by the leading published authority on Spratling when
the prototype necklace was purchased from a leading Spratling silver
jewelry dealer specialist. Both were very knowledgeable market
In many litigation support appraisal assignments the
personal property is no longer available for inspection. Novotny brings
substantial knowledge and experience to appraisal assignments in which he
cannot, for many reasons, inspect the subject property. Many of Novotny's
expert witness appraisal assignments are of this type.
In 2008 Novotny
published an article in the Journal of Advanced Appraisal Studies entitled
Sampling" The Valuation of Loss Claims with Limited Property
This article offers in depth information regarding the
relevant theory, methods and the appraisal requirements that apply to a personal property appraisal in
which the property is destroyed, stolen, lost or converted and cannot be
inspected. He developed the paper while appraising the personal property of all
the plaintiffs from the La Conchita landslide just outside of Santa Barbara
that occurred on January 10, 2005.
Rare and Unusual Objects
Novotny uses highly experienced and knowledgeable
experts as needed. As often as not he has had experience with an
equivalent or comparable property type, based on past buying, selling or
researching, and has a basic understanding of how it performs in the
relevant market. He may not, however, always be able to identify every
critical value element for each unique property type. It is an important
scope of work decision as to when to consult an expert that has the required knowledge regarding a subject properties characteristics. The appraiser must follow the appraisal process and do whatever is necessary to develop credible assignment results.
Read a two-part article written by Novotny that explains the appraiser's diligence obligations in the context of USPAP's two essential rules (SCOPE OF WORK RULE and COMPETENCY RULE). Novotny explores the generalists obligations from the point of view of "Which Rule Rules?"
Find out more about Novotny's extensive personal property appraisal background and experience.
The #1 Reason a Client should Trust an Appraiser: USPAP!
In 1987 the Appraisal Foundation (TAF) was authorized by Congress to be the source of minimum appraisal standards (USPAP) and appraiser qualifications. Since then each state is required to implement these minimum standards and qualifications whenever an appraiser is licensed. The Uniform Standards of Professional Appraisal Practice (USPAP) is recognized and embraced by Congress, regulators, government agencies, the IRS, the courts and the insurance and banking industry. USPAP establishes the minimum standards for all appraisers. Compliance with USPAP is necessary to establish a basis for trust between the appraiser and the client. Clients have a reason to invest their trust in the appraiser
when the appraiser complies with USPAP while following the appraisal process.
Demand Credibility. The primary task of the personal property appraiser is
to properly understand the client's valuation problem, especially the
client's intended use. The final task of the appraiser is to ensure that
the valuation report is worthy of belief relevant to intended use.
Avoid appraiser Incompetency.
Novotny is an AQB Certified USPAP Instructor
The Appraiser Qualifications Board (AQB) USPAP Instructor Certification Program was implemented in February 2002 to certify USPAP Instructors to properly teach the Uniform Standards of Professional Appraisal Practice (USPAP). Since January 1, 2003, only AQB Certified USPAP Instructors have been permitted to teach the National USPAP Courses (15-hour and 7-hour courses) that are required of appraisers. In 2003 Novotny became the first personal property appraiser to be certified as a National AQB USPAP Instructor. Find out more!
Appraisal and USPAP Courses Taught Online or Onsite
College For Appraisers (CFA)
New 2016-2017 7-Hour and 15-Hour USPAP onsite courses are, or will be available through CFA for 2016. The 7-Hour USPAP Update Course (2016-2017) was offered on Sunday, February 28, 2016 and another will be offered again soon. The 15-Hour two-day USPAP Course is also open for registration and
will be offered on March 18th and 20th, 2016. Contact CFA (714-952-2727)
or Walt Miller (562-930-0895) for further information.
In the past in Los Angeles 15 Hour USPAP courses were provided on March 8th and 10th 2014
at the Ayer Hotel in Seal Beach CA and July 2015 at the Holiday Inn in Long Beach. In the past 7-Hour USPAP
courses were presented on May 10, 2014 and July 2015.
Novotny's 15 Hour USPAP courses cover all ethical and competency requirements that apply to the development and reporting of appraisal or appraisal review assignments as well as the USPAP requirements that always apply when acting as an appraiser.
Novotny's 7 Hour USPAP Update course covers all changes that were implemented by the ASB for 2016-201; it also explores many advanced issues that are commonly confronted and often confusing to appraisers.
In all of his USPAP classes Novotny alway uses many personal property real world scenarios that are based on his extensive experience as an appraiser, antique dealer and estate liquidator.
The College For Appraisers (CFA) also presented “Appraising Personal Property: Theory, Methodology and Report Writing
- A Fully Integrated USPAP Approach” (4 days) taught by Novotny on February 4, 2014. A newly developed 3-day course was provided on November 21 to 23, 2015. Please contact CFA to be notified of upcoming USPAP and other appraisal and personal property oriented classes.
Novotny is also preparing a series of "Far East Asian Decorative Arts" one day courses at the request of CFA. These courses will focus on China, Japan, Korea and other Far Eastern countries. The class will focus on pottery, porcelain and lacquerware, but also cover many other decorative art Asian property types from an historical time line.
Contact the College For Appraisers (CFA) at (714-952-2727)
for further information or to be notified of future course offerings. Find our more!
Appraisal Course Associates (ACA)
Novotny also offers online and onsite courses throughout the USA in partnership with David Maloney at Appraisal Course Associates. If you are interested in presenting a 15 Hour USPAP course for your group, or in taking an online USPAP Update course.
Enroll now for a USPAP Online Update Course.The popular online USPAP Update course developed by Novotny that covers the 2014-2015 USPAP changes, and that addresses confusing appraisal problems frequently confronted by appraisers is currently available. Please visit the Appraisal Course Associates (ACA) website.
On August 3rd and 4th of 2011 Novotny taught a personal property 15 Hour National USPAP Course in Lincoln Nebraska at the request of the Professional Association of Appraisers, Quilted Textiles (forty appraisers attended). Read some comments
from these students and from past course participants.
Beware of Appraiser Negligence and Incompetency
Personal property and antiques appraisers are not licensed or regulated in California, nor in any other state. Any person can represent that they are an appraisal expert and to have the valuation knowledge possessed by appraisers. Many lack training in appraisal theory, methodology and report writing. Many lack the required knowledge and experience that is necessary to develop and report credible valuation assignment results. Many are unfamiliar with USPAP, which is the minimum standards necessary to support appraiser credibility. Check credentials carefully before hiring an appraiser.
Accredited membership in a recognized professional personal property appraisal society will establish that an appraiser has met the professional association's minimum experience, training and educational requirements. Professional societies and associations require their members to comply with USPAP and abide by their ethical and report writing standards. Appraisers without such membership are less likely to understand the appraisal problem and solution and are often ill equipped to provide credible opinions, analyses and conclusions. Novotny has been an accredited member of ANA since 1993 and ISA since 1996.
Ask any appraiser you interview whether or not they have successfully completed the 15-Hour USPAP course, passed the required test and always provide a signed USPAP certification when providing a valuation conclusion. Ask about their membership in professional appraisal societies or associations. If the answer is no - proceed cautiously!
Novotny will always comply with USPAP, the ANA and ISA Code of Ethics and Professional Conduct, and the ISA Report Writing Standard when acting as an appraiser. In each and every appraisal assignment Novotny has a signed USPAP certification.
Other Services and Related Websites
Novotny often provides onsite sales of antiques, household goods or residential contents that includes all types of personal property that require liquidation. When acting in the role of Estate Sale Agent
he is no longer acting as an appraiser but uses many of the same skills that are required to property price property for sale.
Visit Novotny's Antiques, now known as Novotny's Antique Gallery
and operated by Shauna Novotny since 2000. It was initially opened by Bill Novotny in 1979. He was a full time antique and general residential contents dealer for 20 years.
See Novotny's CV
Please explore and enjoy the many pages, photographs and related links in this website. You are free to link to any article, page or section of this website of interest to you and that you would like to share with visitors to your website. Just cut and paste the URL of interest to you into a link that you create on your website. Should you quote or borrow part of a page you should reference "novotnyappraisal.com" to avoid violating my copyright.
Copyright 2009-2014 - all rights reserved - William M. Novotny