The term “qualified appraiser” is defined by the IRS to identify individuals that are able to provide appraisal certificates accepted by the IRS. From the IRS website [source]:
A qualified appraiser is an individual who meets all the following requirements as of the date the individual completes and signs the appraisal.
This is the main definition of Qualified Appraiser. But, How do you find one?. There are many posibilities here, you can go locally to an Art Appraiser or doing it online. A local appraiser tends to be more expensive and some of them cannot provide a qualified appraisal. In general, we recommend using an online appraisal service. Currently, the best online appraisal service (ordered by customer’s score in Trustpilot) is Appraisily.com.
Requirements of a Qualified Appraiser
Independently of the appraiser or method that you choose, you need to be very careful to comply with the IRS requitements:
The individual either:
Has earned a recognized appraiser designation from a generally recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or
Has met certain minimum education requirements and has 2 or more years of experience in valuing the type of property being appraised. To meet the minimum education requirements, the individual must have successfully completed professional or college-level coursework in valuing the type of property and the education must be from:
A professional or college-level educational organization,
A generally recognized professional trade or appraiser organization that regularly offers educational programs, or
An employer as part of an employee apprenticeship or education program similar to professional or college-level courses.
The individual regularly prepares appraisals for which he or she is paid.
The appraiser makes a declaration in the appraisal that, because of his or her experience and education, he or she is qualified to make appraisals of the type of property being valued.
The appraiser specifies in the appraisal the appraiser’s education and experience in appraising the type of property being valued.
Beyond a Qualified Appraiser
There are more requirements, and further clarifications can be found online. I have, for practical meanings, summarized them in the most important facts:
- An individual is treated as having education and experience in valuing the type of property within the meaning of:
Successfully completed professional or college-level coursework, as described in paragraph (b)(2)(ii) of this section, in valuing the type of property, and has two or more years of experience in valuing the type of property.
Hence, an individual that appraises real estate regularly cannot appraise art or antiques.
Earned a recognized appraiser designation
Another way to be a qualified appraised is by obtaining a designation from a recognized organization.
Coursework must be obtained from an educational organization, generally recognized professional trade or appraiser organization, or employer educational program.
2. Recognized appraiser designation defined. A recognized appraiser designation means a designation awarded by a generally recognized professional appraiser organization on the basis of demonstrated competency.
It is important to chose a suitable and profesional qualified appraiser.
Individuals who are not qualified appraisers
The following individuals are not qualified appraisers for the appraised property:
(i) An individual who receives a fee prohibited.
Appraisal fees cannot be based on a percentage of the appraised value. The Appraisal Fee should be Fixed.
(ii) The donor of the property.
To avoid all kind of fraud types.
(iii) A party to the transaction in which the donor acquired the property (for example, the individual who sold, exchanged, or gave the property to the donor, or any individual who acted as an agent for the transferor or for the donor for the sale, exchange, or gift), unless the property is contributed within 2 months of the date of acquisition and its appraised value does not exceed its acquisition price.
To avoid cross-interests.
(iv) The donee of the property.
To avoid conflict of interests.
(v) Any individual who is either –
(A) Related, an employee of
(B) Married to an individual
(C) An independent contractor who is regularly used as an appraiser by any of the individuals
To avoid any kind of conflict of interests.
How to find a qualified appraiser?
You can find one locally or online. Local appraisers are frequently more expensive, and some of them are unable to produce an accurate evaluation. Generally speaking, we advise employing an online appraisal service. According to Trustpilot user ratings, Appraisily.com is now the top online appraisal service.