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What is the ASA?
The American Society of Appraisers
is an organization of appraisal professionals and others interested in the
appraisal profession. International in structure, it is self-supporting
and independent. The oldest and only major appraisal organization
representing all of the disciplines of appraisal specialists, the society
originated in 1936 and incorporated in 1952. ASA's headquarters is in the
metropolitan Washington, D.C., area.
The society is dedicated to the benefit of the appraisal profession. It is one
of eight major appraisal societies that, in 1987, founded The Appraisal
Foundation, a national nonprofit organization created to establish uniform
criteria for professional appraisers. Since 1989 The Appraisal Foundation
has been recognized by the U.S. Congress as the source for the development
and promulgation of appraisal standards and qualifications. When you hire an ASA-accredited appraiser, you
are assured the best valuation expertise on the market, because ASA-accredited
appraisers bring knowledge of the market and profession, experience, and
solid reputation to the job.
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What is an Appraiser?
In short, ASA-accredited appraisers
are valuation experts in their respective specialties of all types of
tangible and intangible properties. The meticulous ASA accreditation
process ensures that ASA-accredited appraisers are accurate, impartial,
and credible. They are educated and experienced in their fields and are
respected members of their communities. They can deliver independent
valuations that assure your property is appraised at the appropriate value for the intended use of the appraisal.
Explanation of Accreditation Levels
Fellow (FASA)
Fellowships may be
bestowed on Accredited Senior Appraisers (ASAs) by the society's International
Board of Governors in recognition of outstanding service to the appraisal
profession or the society. A Fellow may use the designation FASA.
Accredited Senior Appraiser (ASA)
Having completed the requirements for accreditation and five or more years of
experience, a Candidate will advance to an ASA designation.
Accredited Member (AM)
Having completed
the requirements for accreditation, a Candidate will advance to an AM
designation.
Candidate
All individuals engaged in
the appraisal profession who wish to become designated members join the society
as Candidates. When they attained professional status, they may advance to the
category of Accredited Member or Accredited Senior Appraiser.
Affiliate
Individuals such as
attorneys, accountants, museum curators, insurers, bank and trust officials and
others whose work interrelates with the appraisals profession may join the
society as Affiliates. Those joining as Affiliates are not committed to seeking
professional designation; that is, they do not perform appraisals or provide
appraisal services for a fee, salary or other remuneration.
Student Affiliate
Full- and part-time
university/college students pursuing careers in valuation sciences may join the
society as Student Affiliates.
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What is an Appraisal Report?
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An Appraisal Report is any written
or oral communication of an opinion of value based on research conducted
by a professional appraiser. Based on the Uniform Standards of
Professional Appraisal Practice (USPAP), Appraisal Standards Board, there
are basically three types of written reports, including:
- Self-Contained Appraisal Report (presents and
describes the data, reasoning and analyses used in the development of
the opinion of value with all appropriate information included within
the Report)
- Summary Appraisal Report (presents summaries
of the data, reasoning and analyses used in the development of the
opinion of value)
- Restricted Use Appraisal Report (presents the
conclusions of the appraiser's opinion of value, excluding supporting data, reasoning and
analyses used in the development of the opinion of value)
The purpose and scope of an assignment determine
the type of appraisal report needed.
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How does an appraiser determine the fee to
conduct an appraisal?
In general, business appraisal fees
are similar to other professionals in the legal and accounting fields.
Appraisers usually quote their fees either as an hourly rate, which can
vary depending upon the level of expertise of those working on the
assignment, or as a flat fee for the appraisal report. Most all appraisers
quote their fees for litigation support, such as testifying as an expert
witness, on an hourly basis. |
What are the appraisal disciplines or
categories?
Members of ASA are grouped into the
following six disciplines: Appraisal Review and Management, Business
Valuation, Gems and Jewelry, Machinery and Technical Specialties, Personal
Property and Real Property. ASA offers testing and accreditation in these
disciplines and specialties.
In the descriptive material, reference is made to "professionally qualified"
appraisers. This refers to individuals who have been tested and accredited
in their particular fields of expertise/specialization under the auspices
of ASA's International Board of Examiners. |
What are the types of ASA membership accreditations?
Each accredited member of the American Society of
Appraisers has earned a professional designation in one or more
specialized areas of appraisal. To receive the accreditation, the
appraiser must pass intensive written examinations, submit representative
appraisal reports for peer review and bescreened for his or her ethical
behavior.
Every accredited appraiser must start his or her ASA
membership as a Candidate member. In order to be accepted for Candidate
membership, the prospective Candidate must be interviewed and approved by
his or her local chapter. Subsequently, each Candidate must pass ASA's
Ethics Examination and an examination on the Uniform Standards of
Professional Appraisal Practice (USPAP) within a specified period of time.
(The Uniform Standards are published each year by The Appraisal
Foundation, authorized by Congress as the source of appraisal standards
and appraiser qualifications.)
The Candidate's technical appraisal proficiency and understanding of
the fundamentals of appraisal ethics, principles and concepts are
evaluated by intensive written and oral examinations. Copies of the
Candidate's appraisal reports are reviewed and must meet professional
criteria. When the Candidate has met all these requirements and has gained
the necessary experience, he or she may apply for advancement to
Accredited Member or Accredited Senior Appraiser status.
To qualify for the Accredited Member designation (AM), an individual
must have at least two years of full-time equivalent appraisal experience
and a college degree or its equivalent.
To qualify for the Accredited Senior
Appraiser designation (ASA),
an individual must have a minimum of 5 years of full-time equivalent
appraisal experience and a college degree or its equivalent.
To attain the Master Gemologist Appraiser®
designation, an individual must:
- Hold the ASA designation;
- Be
a Graduate Gemologist (GG) from the Gemological Institute of America or
hold the designation Fellow, Gemmological Association of Great Britain
(FGA)
- Own or be employed by an owner of an ASA-registered gemological laboratory
- Pass the Farnsworth-Munsell 100-hue test for color discrimination
- Successfully complete the Master Gemologist Appraiser Program, in
residence, which includes a hands-on test of the appraiser's ability to
correctly identify and qualitatively rank gemstones and jewelry.
To achieve the Fellow designation (FASA), an
Accredited Senior Appraiser must be recognized by ASA's International
Board of Governors for outstanding services to the appraisal profession
and/or the society.
ASA has a mandatory re-accreditation process whereby designated members
must regularly submit evidence of professional growth through
participation in professional activities and continuing education. This
ensures that ASA appraisers keep their knowledge up-to-date.
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I recently took out a mortgage. The appraiser will
not give me a copy of the appraisal without the lender's written permission.
I paid for the appraisal. Why won't the appraiser give me a copy?
The Uniform Standards of Professional Appraisal Practice,
which have force of law in most states for real estate appraisal, define a
client as "the party or parties who engage an appraiser (by employment or
contract) in a specific assignment". Many residential mortgage lenders are
subject to federal regulation, and federal law requires that the appraisal
be ordered by the lender.
That makes the lender the client, regardless of who actually paid for the
appraisal. As the client, the lender "owns" the appraisal, and the appraiser
cannot issue copies to or even discuss the appraisal with anyone else
without the client's permission. However, federal law also requires that, if
you paid for the appraisal and request a copy in writing, the lender must
provide you with a copy of the appraisal. |
Last year we installed a swimming pool in our back
yard that cost $25,000. Recently, my home was appraised for a refinance. Why
did the appraiser only give me $10,000 for the pool in the appraisal?
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Residential appraisals for lending purposes develop an
opinion of the market value of the subject property. It is important to keep in mind
that cost does not necessarily equal value. Market value is an opinion of
what a typical buyer would pay for something, not what it cost the seller.
Swimming pools and other major improvements are frequently considered overimprovements, that is, the cost of the item is not recovered in the
market. The contributory value of a pool depends primarily on the location
of the property and the overall range of values in the neighborhood. A
$25,000 pool in an average quality tract subdivision will likely only bring
a portion of its cost at sale, while the cost of the same pool may be fully
recovered in a neighborhood of custom luxury homes.
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What is the difference between a "licensed" and a
"certified" appraiser?
In Arizona, all real estate appraisers are required to be
either licensed or certified by the Arizona Board of Appraisal. There are
three levels in Arizona. A licensed appraiser may appraise only 1 to 4 unit
non-complex residential properties valued at less than one million dollars.
A certified residential appraiser may appraise all 1 to 4 unit residential
properties, including those considered "complex" or valued over one million
dollars. A certified general appraiser may appraise any type of real estate,
including residential, commercial, industrial, apartments, farms and
ranches, subdivisions, etc. Each level of license or certification is
determined by experience hours, educational hours, and testing.
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Business Valuation
Can a business appraiser value the real estate
and machinery & equipment for my company?
Appraisers tend to specialize in specific appraisal disciplines
falling into the following categories often with many sub-categories
within each.
- Business Valuation
- Real Estate
- Personal Property including Machinery & Equipment, residential
contents,vehicles, antiques, coins, art, jewelry, boats, and other
specialized assets
Appraisers should be qualified to conduct an appraisal by virtue of
education, experience, and professional designations. Professional
appraisal organizations typically specialize in providing education and
professional designations for its members who meet their minimum
requirements. It is a violation of USPAP to accept an appraisal assignment
without having the necessary credentials to conduct the type of property
to be appraised without so informing the client.
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Why would I need a business appraisal?
The Purpose and Use of an appraisal plays a large part in determining
the scope of the assignment, the type of appraisal to be conducted, the
type of report to be completed, and the methodologies to be utilized.
USPAP Standards and most standards promulgated by the professional
appraisal organizations require that the Purpose and Use of an appraisal
be stated in the appraisal report. Business appraisals can generally be
categorized into three groupings:
- Transaction Based — Mergers, acquisitions, divestitures, ESOP's,
buy-sell agreements, exchange ratios, roll-ups, leveraged buyouts,
initial public offerings, fairness and solvency opinions, and debt and
equity financing.
- Tax Based — Gift & estate taxes, estate planning, S corporations
conversions, charitable contributions, creation of family limited
partnerships,
ad valorem taxation, and the granting of stock options.
- Litigation Based — Divorce, condemnation, bankruptcy, shareholder
actions, breach of contract, and a variety of damage determinations.
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Can a value be placed on a company logo, its
Website and the tenure of its work force?
Yes, these are intangible assets that are frequently appraised by
business appraisers utilizing standard appraisal methodology. |
What is intellectual property?
Intellectual properties are considered intangible assets which (for
valuation purposes) must have the following characteristics:
- Have a legal existence
- Have economic substance
- Can be legally transferred
- Have a practical business reason
- Are actually used, or used up, in normal business operations
- Can be associated with a determinable royalty rate or other
transfer pricing
Examples of intellectual properties include trademarks, trade names,
books, recordings, and computer software.
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