Test Your Appraisal IQ

Test Your Appraisal IQ

See answers at the bottom.

1. The federal government regulates personal property appraisers.

a. True.
b. False.
c. Only if they are also dealers.
d. Only if they charge a fee which is a percentage of the value of the item.

2. If you take a tax deduction for a non-cash charitable contribution, you must get a qualified appraisal if the deduction claimed is:

a. $500 or more.
b. $2,500 or more.
c. $5,000 or more.
d. An appraisal is not required for any amount, but is highly recommended.

3. For insurance or damage claims, a good appraiser should consider "sentimental value" when arriving at an appraised value.

a. True.
b. False.
c. Only for family portraits, photographs, or other types of property with a family history.

4. A dealer who specializes in a particular type of item is the most competent to appraise that item only if:

a. They are willing to buy the item at the amount they appraise it for.
b. They have advanced appraisal training and have been tested.
c. They do not have a financial interest in the item being appraised.
d. Both b and c.

5. If your 20-year-old sofa burns up in a fire, your insurance company will:

a. Replace it with a brand new one of comparable quality.
b. Pay you its actual cash value.
c. Choose what is best for them.
d. It depends on how the policy is written.

6. A good appraiser is one who will:

a. Tell you the value of an item immediately.
b. Offer to buy the item at the price appraised.
c. Charge a fee based on an item's value.
d. Give you a "high" or "low" value, depending on what you want.
e. None of the above.

7. A good appraisal report should include:

a. A cover document presenting the purpose and assigned use of the appraisal, a complete and accurate description of the property, and the limitations and qualifying conditions.
b. A statement regarding the appraiser's financial interest or disinterest.
c. The appraiser's qualifications.
d. The date of inspection and effective date of value.
e. All of the above.

8. A "free appraisal" given by an auction house is:

a. Useful for insurance purposes.
b. The best way to find out what your item is really worth.
c. An unbiased opinion of value.
d. Accepted by the IRS for tax purposes.
e. None of the above.

9. An "accredited member" of the International Society of Appraisers is one who:

a. Has paid a membership fee.
b. Agrees to adhere to the code of ethics.
c. Has taken over 60 hours of specialized appraisal training and passed exams.
d. All of the above.
Answers: 1-b, 2-c, 3-b, 4-d, 5-d, 6-e, 7-e, 8-e, 9-d.