The Appraisal Process Consists of Essentially Three Components:

1. On-site Examination and Documentation of Personal Property Articles

   Ms. Angerman Soffer personally examines and digitally photographs all items to be appraised. Examination consists of a visual inspection to identify the medium, style, quality, date and condition of the works. This includes taking measurements and making note of all signatures and markings. The on-site examination typically occurs at the client's residence or office.

2. Off-site Research and Report Writing

   Research and report writing are conducted at Ms. Angerman Soffer's office, equipped with an art library of research books, price guides, periodicals, reference publications and auction catalogues. When needed, research is supplemented by materials at the library. Depending upon the purpose and function of the appraisal, Ms. Angerman Soffer will determine the type of value to employ and the most appropriate marketplace for the items included in the appraisal. Once this is determined, Ms. Angerman Soffer will conduct thorough research for each item to be appraised. This includes searching for provenance and catalogue raisonné references as well as locating proper titles and records of prior sales history. After the works are properly identified and catalogued, Ms. Angerman Soffer searches for market comparables in order to establish the appraised value.

3. Delivery of the Appraisal Report

   The appraisal report is a bound printed document signed by the appraiser. The report includes (among other information): appraiser's certification, methodology, scope of work, definition of value, statement of market conditions, fine art inventory and sources consulted. Digital images are embedded in the report under each article for easy identification. All information pertaining to the appraisal is confidential and will be kept by Michelle J. Angerman and Associates, Inc. for a minimum period of five (5) years after the date of issue or two (2) years after final disposition of any judicial proceedings involving the Appraiser, whichever period expires last. Michelle J. Angerman and Associates, Inc. will not allow others to have access to these records without the client's written permission, unless ordered to do so by a court of law. The written report is delivered after receipt of final payment, unless prior arrangements have been made.

Appraisals are not certificates of authenticity. With that said, it is the obligatory responsibility of the appraiser to perform due diligence and follow guided measures should the appraiser believe a question of authenticity arises. Should an article of fine art require authentication, the appraiser can assist in the authentication process through contacting the appropriate experts or referring the client to the authenticating source for the artwork involved.

Types of Appraisals

Michelle J. Angerman and Associates, Inc. conducts various types of appraisals depending upon the expressed purpose of the report.

Insurance Coverage

Insurance appraisals are documents required by insurance companies to establish the amount of coverage for an art collection. An insurance appraisal is prepared in order to document two important pieces of information that protect the client: (1) a third-party verification that the property existed and (2) the value of the property at the time of the on-site inspection. Insurance appraisals are crucial documents in the event of a loss or settlement dispute. They facilitate claim settlement by providing detailed information about the characteristics and value of the property.

Damage claim/loss appraisals are documents created after damage or a total loss occurs to assist in the fair and expeditious settlement of a claim. These appraisals determine the loss of value and other critical information needed in facilitating an equitable settlement.

Equitable distribution appraisals are documents that inventory and value the articles to be disseminated. The appraisal acts as a fair and equitable basis for the division of personal property.

Estate appraisals are documents that provide a snapshot of the value of a decedent's property as of a particular date. Estate appraisals include a room by room itemization with comparables cited in the report for individual artworks valued over $3,000 or for collections valued over $10,000. The value of the decedent's property interest for estate tax purposes is the Fair Market Value (as defined in IRS Treasury Regulation §20.2031-1(b)) as of the date of death (or if elected, the six month alternate date). All appraisals meet the relevant requirements of Treasury Regulation §20.2031-1(b) and §20.2031-6 "Valuation of Household and Personal Effects" and with the requirements of IRS Revenue Procedures 65-19 and 66-49.

Non-cash charitable contribution appraisals are documents that determine the amount that a taxpayer may deduct for donated property. The IRS requires a "qualified appraisal" prepared by a "qualified appraiser" for the donation of any article of fine art exceeding a Fair Market Value (as defined in IRS §1.170A-1(c)(2)) of $5,000 claimed on a tax return. In order to get an income tax deduction equal to 100% of the fair market value of the donated artwork, the property must have related use to the qualifying charitable organization where it is donated. Donations valued over $20,000 are sent to the IRS Art Advisory Council for review. Each donation appraisal is accompanied by an 8283 form completed by the appraiser. All appraisals meet the relevant requirements of Internal Revenue Regulation §1.170A-13 (c)3 and to the requirements of IRS Revenue Procedures 66-49 and Publications 526 and 561. All appraisals conform to the Transitional Guidance Regarding Appraisal Requirements for Non-Cash Charitable Contributions in Part III - Administrative, Procedural, and Miscellaneous of Notice 2006-96.

Gift tax appraisals are documents that determine the fair market value of the gifted property as of the date the gift is made. Each individual is able to gift a designated amount per person to an unlimited number of donees in a given calendar year gift tax free. Any gift in excess of this threshold to any one donee requires the filing of Form 709 (U.S. Gift Tax Return).

Bankruptcy appraisals are documents that value assets in the event of bankruptcy. The appraisals provide valuation for liquidation purposes.

Collateral appraisals are documents used by clients when borrowing against a work of fine art. The appraisal determines the marketable cash value (the value, net of expenses) of the fine art, which is the value the lender will most likely receive in the event that the borrower defaults on the loan.

As a general rule, appraisals should be updated every three to five years, depending upon the nature of the collection.

Fees

Fees are based on an hourly rate plus expenses and are not related to the appraised value. Ms. Angerman Soffer provides clients with a project estimate prior to commencing the project. A 50% retainer is due upon signing the appraisal agreement prior to the on-site examination. Once the appraisal is complete, the client is notified and invoiced for the remaining balance. Upon receipt of the invoice balance, a bound hard-copy of the appraisal is mailed via USPS priority mail with delivery confirmation. A fee schedule is available upon request.

References

References are available upon request.

In Choosing An Appraiser It Is Important To Look For The Following:

An Appraiser....

• With good standing in a federally recognized appraisers association that tests its members such as:

  International Society of Appraisers (ISA)
  Appraisers Association of America (AAA)
  American Society of Appraisers (ASA)

• Who prepares appraisals in compliance with the standards set forth in the Uniform Standards of Professional Appraisal Practice (USPAP)
• Who is qualified and educated in understanding the various types of values, assigned uses and market levels
• Who is familiar with the genre of property you wish to be appraised
• Who is actively involved in continuing education and testing, and has formal schooling in appraisal theory, methodology, ethics, the law and procedure