Question:

I’m a personal property appraiser and I’ve been asked to donate my professional services to help raise funds for a charitable organization.  The charity wants to hold an event where anyone can bring in their personal property items and, for a nominal fee (paid to the charity), receive my opinion as to the value of their item(s).  This appears to be similar to television shows where people bring in their personal items to be valued.  If I decide to participate, would my opinions be considered appraisals and if so, how could I comply with USPAP in performing these assignments? 

Response:

USPAP defines “appraisal” as:

the act or process of developing an opinion of value; an opinion of value.

Therefore, the opinions you describe would be appraisals.

To comply with USPAP, a personal property appraiser would have to comply with the requirements of STANDARD 7 and STANDARD 8, in addition to the applicable rules (e.g. ETHICS RULE, COMPETENCY RULE).  This means the appraiser would have to perform the level of research and analyses required to produce credible assignment results (given the intended use). Since the appraiser would be communicating the appraisal as an oral report, the report must address (to the extent that it is both possible and appropriate) the substantive matters of a Summary Appraisal Report.  In addition, the appraiser would have to prepare a workfile as required by the Record Keeping section of the ETHICS RULE.

These television shows may make it appear that the appraiser is providing his or her appraisal “off the cuff” and not in compliance with USPAP. However, it is more likely the appraiser has been provided with the personal property item to be appraised prior to the actual taping of the show.  The appraiser may also be providing the property owner with a written appraisal report; although it may not be discussed during the television show.  Therefore, it is possible the appraiser is rendering a USPAP-compliant appraisal and report, even if it does not appear that way during the airing of the show.

See Advisory Opinion 21, USPAP Compliance for further guidance.