Intended Use and Report Type
Learn How Reported Appraisals are Used
There are many intended uses and each requires a different solution.
Intended users should expect an appraisal report that is meaningful, properly understood and not misleading. Reported value conclusions must be worthy of belief relevant to intended use. The assignment results must be ethically and competently developed in compliance with The Uniform Standards of Professional Appraisal Practice (USPAP).
Determine Your Property’s Value With an Expert
Credibility Depends on Intended Use
The first task of a personal property appraiser is to carefully communicate with the client to define or identify the appraisal problem. There are many types of personal property appraisal intended uses (e.g. assignment types). Understanding intended use is essential. It allows an appraiser to determine the effective date, appropriate value definition, the appropriate market to research and to determine if the appraiser is competent to solve the appraisal problem that has been identified. Only then can the personal property appraiser determine and conduct the scope of work necessary to solve the valuation problem credibly. Whether an appraisal report is worthy of belief (credible) is determined relevant to intended use. The appraiser's task is formidable; client's need a formidable appraiser. Novotny Appraisal Services can solve your personal property appraisal in Los Angles.
Novotny's best credential
The solution, communicated in an appraisal report, must be developed following the appraisal process. The appraiser must have the knowledge and experience to complete the assignment ethically and competently and in compliance with the Uniform Standards of Appraisal Practice (USPAP). Novotny's best credential is his AQB Certified USPAP Instructor Certificate.
Highest frequency of sales
There are many types of intended uses (Client objectives) discussed in detail below. Novotny, a general personal property appraiser in Los Angeles is frequently contacted to perform many types of appraisal intended uses, often for complete residential contents. Each intended use requires an appropriate definition and the investigation of the relevant market (with the highest frequency of sales or offerings for comparable objects). Each appraisal assignment carries with it other client-centered needs, objectives, priorities, deadlines, subsidiary goals, and budgets that must be considered at the time of the assignment. Once one of the intended uses listed below is identified, the appraiser can take the appropriate action in order to:
Calculate value for IRS tax purposes for estate taxes or non cash charitable contribution
Assist in trust or probate management
Determine value for equitable distribution or decision making
Or provide an abbreviated preliminary or staged report for negotiated settlement purposes such as arbitration, mediation, informal negotiation (with initial minimum scope of work) based on 40 years of multiple alternative market knowledge and experience with most property types
19th Century English Drawer Dovetail
Types of Personal Property Commonly Encountered and Appraised
Once Novotny understands how the appraisal will be used, he can then identify the appropriate value definition and relevant market. He can then determine the appraisal plan (scope of work) and produce relevant data, as needed, to inform and support his value opinion for each object or hundreds of objects. There are multiple alternative markets for movable objects. Novotny was a retail antique dealer (1979-1999). He is familiar with the wholesale and retail market, familiar with orderly liquidation as an estate sale agent (since 1990). He has regularly reviewed auction results for most specialized property types since 1979.
The credibility of his assignment results is established relevant to intended use. Intended use drives the appraisal process. See the final task of the appraiser, at the bottom of this page. It explains what the appraiser must consider to ensure that the report is worthy of belief or credible relevant to intended use.
See the general types of property that Novotny typically can appraise. Contact Novotny for a free consultation to determine if he is a good fit to solve your valuation problem. Find out more about oral appraisals and how to prepare for an oral appraisal... contact me!
Read on to find out more about the different intended uses of appraisals.
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William Novotny is a general personal property expert witness appraiser specializing in complete residential contents appraisals, with or without a property inspection. He has gathered significant expert witness litigation support experience since his first case in 1996. Since then he has served as a litigation consultant for personal property valuation cases for many attorneys, both plaintiff and defense. He was last deposed on July 16, 2018 and before then May 27, 2015, February 25, 2013, Aug 17, 2012, June 21, 2012 and March 16, 2011. His last trial testimony was on April 11, 2016, June 15, 2015 November 5, 2013 and in 2007. He was designated as a personal property expert witness appraiser over 30 occasions. Some cases had multiple plaintiffs. Most litigation support assignments relate to personal property damage or loss alleged to have been caused by water intrusion, fire, mold or asbestos contamination, theft or conversion.
Novotny embraces the challenges of expert witness appraisal work with a confidence based on 37+ years experience in the professional valuation of personal property and antiques. He can convincingly establish and maintain his credibility as an expert witness, and convincingly communicate how and why his analyses, opinions and conclusions are worthy of belief. Expert witness personal property appraisal work is challenging!
Novotny's testimony is based on facts, proper appraisal methodology and a scope of work sufficient to develop credible assignment results. His property identification and valuation is backed by many years of market knowledge and experience.
When you retain Novotny he will identify and understand the appraisal problem, and explain his scope of work and the solution to the appraisal problem based on the questions posed to him.
His standard of care will meet or exceed the requirements of the Uniform Standards of Professional Appraisal Practice and the actions of his peers.
He will give his own opinion based on the facts of the case.
He will demonstrate a mastery of the technical aspects of the appraisal.
He will will always remain independent, objective and impartial.
He will present a professional appearance and demeanor.
He will consider the question posed carefully and provide a simple, direct answer to the specific question asked.
He will use clear, plain and non-technical language.
He will tell the truth always, and not advocate or push a client' interests.
Trust and Probate Appraisals Flexible and Appropriate
A trust is a legal mechanism that establishes how and when your assets will be distributed upon your death. Trusts can help you reduce your estate and gift taxes and distribute assets without the cost, delay, and publicity of probate court which administers wills. Estate Planning is an important part of this process.
When someone dies, with a will or a trust, the antiques and personal property frequently need to be valued by an ethical and competent appraiser to determine fair market value. Novotny will document and value your antiques and personal property as required and appropriate. The report type and content must meet the probate court’s requirements and the needs of intended users.
Assets held in joint tenancy may not be subject to probate or trust administration, but they may still have to be valued for estate tax purposes or to establish a basis for later IRS tax purposes (a step up) and for equitable distribution among heirs. The IRS can require an itemized list and valuation of person property.
Equitable Distribution and Divorce Appraisals Require Fair Market Value Determination
Vintage Taxco Mexico Sterling Tea and Coffee Service
Personal property often has more than one party with an ownership interest. Frequently value is in dispute and the parties need expert valuation. During the dissolution of marriage personal property marital assets that are community property must be equitably distributed based upon a determination of fair market value. This may require the services of a personal property appraiser when the dispute cannot be resolved between the parties.
Frequently in trust or estate management situations there are multiple beneficiaries of the personal property and the property requires a fair market valuation in order to be distributed equitably.
Part or all of the appraisal process can be conducted without a written report (when a written report is not required for legal purposes). An oral valuation report can be requested by a party or parties with an interest in the value of the subject property. An oral valuation report can substantially reduce appraisal costs. For Novotny to provide an oral report, all parties must agree to retain Novotny, and to be present during Novotny's inspection and valuation.
If the parties accept the stated value then no further appraisal service is needed. If a party contests the stated value, and If a computer is available on-site, Novotny can, if requested, quickly demonstrate the range of published sales of comparable objects. He can also do this, if requested, later at his office and report back to the clients and, as directed, to intended users.
Formal written appraisal
If, on the other hand, a party(s) requires a written report, at increased cost, Novotny will prepare a written report. He creates formally written appraisal reports nearly every day of his life for various intended uses. Written and oral reports must meet USPAP requirements.
IRS Tax Appraisals Require a Qualified Appraiser and Qualified Appraisal
As of August 2006, the Internal Revenue Service (IRS) began reviewing and changing the rules. Notice 2006-96 was issued providing guidance for defining a qualified appraiser. When the appraiser can fulfill these requirements it will be a good indication that an appraisal for estate tax reporting or charitable contributions will be reviewed positively. Recent changes in the law (Pension Protection Act, 2006) affect the process of charitable contribution.
The IRS recognized the need to better define a qualified appraisal. Proposed regulations (§1.170A-17(a) will establish that a qualified appraisal means an appraisal document that is prepared by a qualified appraiser in accordance with generally accepted appraisal standards such as the Uniform Standards of Professional Appraisal Practice (USPAP).
There are many specific requirements relating to non-cash charitable donation and estate tax (decedent 706 estate tax returns) of the IRS that an appraiser must be familiar with and capable of fulfilling. For instance, for tax returns after August 2006, the appraiser must:
Earned an appraisal designation from a recognized professional appraiser organization
Regularly perform appraisals for compensation
Verifiable education and experience in valuing the type of property being appraised
Novotny has prepared many IRS tax appraisal reports in compliance with IRS regulations & USPAP. Novotny is a qualified IRS appraiser able to perform IRS tax appraisals for most residential contents appraisals and for many property types.
An appraisal may also be needed for trust or probate purposes, estate planning, equitable distribution, and informed decision making.
Determine Your Property’s Value With an Expert
Insurance Appraisals of High-Value Objects and Inventory of Residential Contents
There are two types of replacement or repair coverage that apply to personal property. Clients may need to obtain insurance or to settle a damage or loss claim. Insurance companies and the moving and storage industry each provide a different type of coverage. Each is governed by different federal laws.
The insurance industry provides homeowner's and renter's insurance for personal property. There are also endorsement and floaters available when property is specifically scheduled. Find out more about proper insurance appraisals with further information from the Insurance industry.
Within a homeowner's insurance policy, some personal property items are subject to limits such as antiques, jewelry, fine art, collector items, and rare objects. Personal property floaters are used to insure personal property objects which have limited coverage under a standard policy. This can also be accomplished through an endorsement, a provision that changes the original policy coverage. These options offer expanded coverage for individual items or item types that are not otherwise covered. The expanded coverage establishes an agreed value that reflects replacement cost without depreciation. Personal property that is frequently scheduled to expand coverage include:
Jewelry and antiques
Furs: real fur garments and garments trimmed with real fur
Cameras: digital, still, movie, video, and equipment
Musical instruments: professional and non-professional
Silverware, antique silver and sterling objects and rare decorative art
Fine Arts: paintings, etchings, bronzes, and sculptures
Manuscripts and books, and antique furniture
Golfer's equipment: matched sets of golf clubs and clothing
Sports equipment: fishing gear, archery and hunting gear
Stamp or coin collections
Hand tools and power tools owned for business purposes
When your personal property or antiques need to be scheduled, or when insured object(s) are damaged or lost, an appraisal is often required to establish value. Novotny serves private parties, insurance adjusters, and litigators with personal property insurance valuation problems. Novotny has the experience to solve client's insurance valuation problems regarding personal property, antiques, and collectibles. Novotny can help you in the following manner:
Acquire insurance and establish object identification for recovery
Value an insured loss or a moving and storage damage claim
Act as an appraiser on an appraisal panel under the insurance appraisal clause
Serve as an expert appraiser in the mediation and litigation of a disputed insured loss
Have Novotny photograph personal property and retain photographs in his work file for proof of ownership
Protect yourself! Document your personal property with a list of important personal property:
Gather and keep all sales receipts of major purchases and past appraisals.
Take a video inventory or photographic inventory of your personal property.
Keep your appraisals and other documentation in a safe place.
Shipping and Storage Damage Or Loss Claims Can Be Challenging - There Are Many Issues
Your personal property is not automatically covered by the transportation company you select for shipping and storage. You must select a coverage plans that must be offered. It is important to understand the differences between these options as they are quite different from the provisions of homeowner insurance policies. Basic minimum coverage can be determined per pound/per item. There are alternate protection plans from which you can choose.
When property is damaged while shipping, either by improper packing or careless handling, an appraisal is frequently required. Moving and storage claims, while similar in some respects, are considerably different from insurance claims. Novotny has handled many shipping and storage damage or loss claims through formal appraisal.
Sometimes a damaged object of lesser value also requires a formally written appraisal. Written appraisals are considerably more expensive than oral appraisals, and they must comply with the reporting requirements of the Uniform Standards of Professional Appraisal Practice (USPAP). Failure to do so properly results in a USPAP violation which is not acceptable.
Abbreviated report template
Novotny developed an abbreviated, low cost, formally written, single page appraisal report template. This template allows Novotny to selectively appraise, and properly report, the value of single damaged objects at a reduced cost. Contact Novotny Now to properly value your shipping damage or loss claim.
Estate Planning and Trust or Estate Management Valuations
What is the value of your personal property? How do you want to distribute your personal property? There are federal and state laws governing estates. Careful estate planning allows you to communicate and establish your intentions, priorities, concerns, and preferences should you be unable to manage your affairs or unexpectedly pass away.
Estate planning can include establishing your trust, will, living will, health-care-proxy, and assignment of power of attorney. Should you die without a trust or will, the state will distribute your assets based on arbitrary formula that may not be congruent with your intentions. Family conflict could occur and increased legal or administrative costs accrue.
To determine value, or to be equitable, sometimes an appraisal is necessary. When you have antiques, fine art, oriental rugs, collectibles, and fine jewelry etc., an inventory and valuation of your important personal property assets should be considered. Novotny can assist you in preparing an inventory and valuation of important personal property by means of a formal inventory or appraisal report. Many clients request Novotny to assist them in preparing an inventory that identifies and lists the market value of their personal property.
The scope of work necessary to develop the appraiser's opinions can vary considerably depending on the property types and the needs of clients and intended users. The extent of reporting can also be very flexible. Well-written formal reports are produced as needed. Oral reports, when appropriate, can be expanded to meet the needs of the client and intended users.
When Novotny provides an oral valuation the appraisal will include sufficient signed paperwork to identify the appraisal problem and important disclosures so users can always meaningfully understand the appraisal so that proper decisions and actions can be taken relevant to intended use. The client is provided with a CV and signed appraiser's certification. Since the inventory and valuation is oral, clients typically document a Novotny oral report by means of:
Taking an audio or video tape of Novotny's oral appraisal report
Taking handwritten notes that documents and values the objects
Preparing an excel spreadsheet
Taking digital photos
Frequently Novotny, in an abbreviated oral report disclosure format, can reference and attach an appraised inventory. The report will identify the number of items in the attachment and the summary value of those items which helps authenticate the attachment.
All of the above, whether done orally or by means of a formally prepared report should be retained off-site in a safe or safety deposit box as well as in Novotny's confidential workfile.
An Expert Personal Property Appraiser and Antiques Appraiser
A Sales Advisory Can Be Done On-Site And Quickly With a Verbal Appraisal
Clients frequently need assistance in identifying objects that may require a specialized market to achieve the highest value and with pricing ordinary objects for on-site sale. Clients frequently request Novotny to provide an oral (Antiques Roadshow type) appraisal report only. During the oral valuation, Novotny will identify the property and provide a price range. When the client intends to personally manage the liquidation of the personal property, Novotny will provide advice, as requested, about how to properly organize, produce and conduct an on-site estate, tag, or garage sale. Such advice often covers issues such as staging, advertising, security, and traffic flow. An oral appraisal report is a cost-effective way to become informed regarding the price range at which property will probably sell with time restraints.
If Novotny is requested to conduct an estate sale, rather than price the property for his standard fee, Novotny will decline the appraisal assignment and offer his services as an estate sale agent or broker.
Oral Appraisal Reports Are Fast and Cost Effective When Appropriate To Intended Use
Many clients seek to avoid the extra expense of a formally written appraisal report when a written report is not required. An abbreviated oral and partially written report comes very close to a formal completed appraisal report with important context and disclosures in writing. Oral appraisal reports are very fast paced, cost effective, and sometimes result in the discovery of hidden treasures. In addition, while doing a houseful, Novotny can photograph and document general household contentsoral report disclosure An appraiser's inventory can provide proof of ownership in the event of catastrophic loss.
Clients often need to make decisions whether to insure, sell, dispose or distribute selected personal property. Clients request an oral report to become properly informed to make such decisions without the additional cost that applies when a written formal report is not required, needed, or wanted. Oral appraisals are cost effective and affordable while still being credible or worthy of belief (relevant to intended use).
For an oral report, the client (or the client's agent) must document Novotny's object identifications, value opinions, as well as his analyses and conclusions communicated on site. The client may document the oral appraisal by means of an audio or visual tape and by written notes. Novotny usually retains a digital audio recording that documents his onsite relevant narrative including his limiting conditions, assumptions, opinions, analyses and conclusions. He retains his recording and does not release it. He does not take photographs unless specifically requested as part of the assignment. In most cases, he could complete a formal, full-fledged report with only minor necessary assumptions and limiting conditions. In fact, he can provide a "near report" either as a one-page "oral report disclosure" form that far exceeds USPAP's oral report requirements. If needed for legal purposes to achieve formality, Novotny can prepare a similar brief one-page Restricted Appraisal Report that transmits necessary disclosures, scope of work performed, methods, and procedures along with a signed USPAP Certification of compliance.
Novotny can enclose his CV with the client's hand written documentations of the oral valuation to the one page "Oral Appraisal Report Disclosures" form (OARD's) that Novotny brings to his inspection. The assembled documents help ensure that his opinions, analyses and conclusion are meaningful to the client and properly understood. The client is encouraged to take and retain some photographic evidence of the subject property as part of that documentation.
Authenticate And Value
Since the summary or aggregate value totals the value of each object identified and valued on the on-site inventory, it authenticates the attached inventory and valuation even though it may be handwritten. The OARD form lists enclosures such as the CV and the handwritten value section. The OARDS, CV, and the clients Value Section thereby comes very close to meeting the requirements for a written appraisal report. Such single page written oral report disclosures allow Novotny to more meaningfully communicate his oral appraisal report.
OARD's Transmittal Cover
The client can opt to prepare an inventory prior to Novotny's on-site inspection and oral appraisal report. The subject properties can be numbered for cross referencing. The client can write the object identification and value opinion for each object as the oral appraisal proceeds. Upon completion of the oral report, the summary or aggregate value total for all of the objects valued can be imbedded in the single page, OARD's form that Novotny brings with him to the assignment. When all is said and done, there is the OARD's transmittal cover document that lists the total number of entries on the client produced hand written or typed value section and the aggregate value of the number of objects listed.
Signed Formal Contract
Novotny provides clients with a signed formal contract with identifies the relevant assignment elements including intended use, intended users, the appropriate value definition, the effective date, assignment conditions, and his scope or work which are repeated in his OARD's form. At the conclusion of the assignment, he can add brief statements regarding scope of work, limiting conditions, assumptions, and hypothetical conditions and other comments necessary to make the oral report more meaningful and not misleading. He can then sign the OARD's form at the bottom under his complete USPAP certification statement.
Novotny's Oral Appraisal Services
As part of Novotny's oral appraisal services, he will often communicate demand factors relevant to a subject object. For some objects, he will opine regarding competing and alternative markets and market acceptability. Knowing the demand factors and liquidation options allows clients to become sufficiently informed to negotiate with potential buyers based upon their urgency to sell and their willingness to retain a property. As part of the oral or verbal appraisal report services, Novotny typically shares with clients the two most important internet sites he uses to find comparable properties. He explains, or demonstrates, how to properly use these sites after he has gone.
Determine Your Property’s Value With an Expert
The Appraiser's Task
Whether or not a personal property appraisal report is credible, or worthy of belief,
must be judged based upon relevancy to the client's intended use of the report.
Signing the USPAP certification statement is, in effect, attesting that the answer to these questions is “Yes! My report is credible”, thereby providing the client with a reason to put his or her confidence in the appraisal report. USPAP protects public trust in appraisers by establishing the minimum standards for appraisers.
Novotny is the first personal property appraiser to become an AQB Certified USPAP Instructor. Since 2002, he has been a certified AQB Certified Instructor and authorized to teach the Uniform Standards of Professional Appraisal Practice (USPAP) to other personal property appraisers.
Novotny will comply with USPAP, as well as the ANA and ISA Code of Ethics and Conduct and the ISA Report Writing Standard, in all appraisal assignments.
Was the problem properly identified? Did my report provide a credible answer to the questions asked? Is it worthy of belief?
Should my client feel comfortable placing his or her reliance on my opinions, analyses, and conclusions?
Does the report have proper disclosures; is it logical, complete, relevant, easy to follow, meaningful, and not misleading?
Have I complied with USPAP?
Find Out More
Visit the New Novotny Website
To find out more about Novotny's Appraisal Services, visit his HOME PAGE now.
To find out how Novotny acquired 30+ years of appraisal experience, see ABOUT US.
To find out more about the types of personal property appraised, visit PROPERTY TYPES.
If you need a generalist antiques and personal property appraiser, CONTACT NOVOTNY.