Top 7 Myths About Qualified Art Appraisal

A good appraisal protects your collection, your wallet, and your peace of mind. Yet in the art and antiques world, myths about “qualified” appraisals persist—often leading to bad decisions, rejected insurance claims, or IRS headaches. Whether you’re insuring a painting, donating a sculpture, or settling an estate, understanding what a qualified appraisal is (and isn’t) helps you get reliable results.

This guide breaks down the seven most common myths, clarifies core standards like USPAP, and shows you exactly what to expect in a professional report. You’ll also get a practical hiring checklist and a short FAQ to use before your next valuation.

What Makes an Appraisal “Qualified”

“Qualified” doesn’t mean fancy letterhead. It refers to both the appraiser and the appraisal report meeting specific, recognized standards for a defined purpose.

• Qualified appraiser: For tax-related appraisals in the U.S., a “qualified appraiser” is someone who has the education and experience valuing the type of property in question, regularly performs appraisals, has completed accepted appraisal education (including USPAP coursework), and is independent from the transaction. The appraiser cannot have a prohibited interest or base fees on the appraised value.
• USPAP: The Uniform Standards of Professional Appraisal Practice set minimum standards for ethics, competency, scope of work, and reporting. A USPAP-compliant report is structured to be credible for its intended use and intended users.
• Intended use and type of value: A qualified appraisal sticks to a specific problem to solve—insurance scheduling, estate tax, charitable donation, equitable distribution, or damage claim—and reports the appropriate type of value for that use (for example, fair market value for estate or donation; replacement value for insurance).
• Effective date: Every appraisal must have an effective date, which anchors the value to a point in time. Market conditions and scholarship change, so value conclusions are not evergreen.

Qualified appraisals are built on evidence—market data from the appropriate market level, condition analysis, and reasoned adjustments—not guesswork, wishful thinking, or salesmanship.

The Top 7 Myths—Busted

Myth 1: “All appraisers are the same.”

Appraisal is not a monolith. The art and antiques market is broad, and expertise is specialized. Someone who excels at 19th-century European paintings may not be qualified for contemporary photography or ethnographic artifacts. A qualified appraiser can clearly describe their specialization, education, and experience with your category. They follow USPAP ethics and produce reports tailored to the intended use. Membership in reputable professional organizations and ongoing USPAP updates are strong signals—but specialization still matters.

Reality: Choose an appraiser with demonstrated competence in your object’s category, current USPAP education, and no conflicts of interest related to your assignment.

Myth 2: “An appraisal is just a number.”

A number without context is vulnerable—to rejection by insurers or the IRS, to misinterpretation, and to legal challenges. A qualified appraisal is a written, USPAP-compliant report that defines the property, the market, the type of value, the intended use and users, the effective date, the scope of work, the research performed, and the data used to support the conclusion. It should be signed, dated, and include the appraiser’s certifications and limiting conditions.

Reality: For insurance, estates, donations, and court matters, a narrative appraisal report with support and methodology is essential. A sticky note with a figure (or a casual email) is not an appraisal.

Myth 3: “Appraised value equals what I’ll sell it for today.”

An item can have more than one credible value, depending on why and where it’s being valued. Examples:

• Fair market value (FMV): The price at which the property would change hands between a willing buyer and seller, neither under compulsion, with reasonable knowledge of relevant facts. Used for estate and charitable contribution purposes; commonly associated with secondary markets like auctions or private sales.
• Retail replacement value: The amount needed to replace the item with a comparable one, considering retail markups, availability, and acquisition costs. Used for insurance scheduling; it’s often higher than FMV.
• Marketable cash value or liquidation value: Used in forced-sale or orderly liquidation scenarios; typically lower than FMV.

Reality: The correct value depends on the intended use, the market level selected, and the effective date. A qualified appraiser identifies and justifies these choices.

Myth 4: “Appraisers authenticate artworks.”

Authentication (determining if an artwork is by a particular artist) typically rests with artist foundations, catalogue raisonné committees, recognized scholars, or technical examiners. Appraisers do not guarantee authenticity. Instead, they appraise based on the best available evidence: provenance, signatures, exhibition and publication history, technical analysis when available, and current scholarly consensus.

Reality: An appraiser can coordinate expert opinions or testing, note authentication risks, and value an item conditionally (e.g., “attributed to,” “circle of,” “after”). But they don’t issue definitive authentication on their own authority.

Myth 5: “Percentage-based fees are normal.”

Linking fees to the appraised value creates a conflict of interest. Under USPAP’s Ethics Rule and common professional codes, compensation contingent on the valuation result is not allowed. Ethical appraisers charge hourly or flat fees based on time, research complexity, and report length—not on how much your piece is “worth.”

Reality: If someone offers to “take a cut” of the value or to raise the number for a higher fee, walk away. Independence and impartiality are non-negotiable.

Myth 6: “Online quick valuations work for insurance, estates, or the IRS.”

Photo-based opinions can be useful for triage, collection planning, or curiosity—but most insurers, courts, and tax authorities require thorough reports prepared by qualified appraisers, often with in-person inspection when practical. Remote assignments are possible but must still meet USPAP scope-of-work and reporting standards. “Restricted” appraisal reports may be appropriate for a single client’s limited needs but often are not accepted for official uses.

Reality: For formal purposes—insurance scheduling, estate tax filings, charitable donations—commission a full USPAP-compliant appraisal from a qualified appraiser in your object’s specialty.

Myth 7: “Appraisals last forever.”

Markets evolve. Artists rise or recede in demand; new data surfaces; condition changes. Insurance schedules are usually reviewed every 3–5 years or after major market moves. For tax-related assignments, the effective date is anchored to a specific event (date of death, date of donation). Using stale values can lead to underinsurance, overpayment of premiums, or challenged filings.

Reality: Treat appraisals as time-stamped opinions. Update them periodically and after significant market or condition changes.

What a Professional Appraisal Report Includes

A credible, USPAP-compliant report is transparent in process and support. Expect to see:

• Client, intended use, and intended users clearly identified.
• Property description: artist/maker, title, medium, dimensions, edition, marks/signature, date, and detailed condition notes.
• Provenance and relevant history: prior owners, exhibitions, publications, and any documented restoration.
• Photographs of the item from multiple angles and details of marks/condition (if feasible).
• Effective date of the appraisal and the date of inspection.
• Type of value reported (e.g., fair market value, retail replacement value) with a cited definition.
• Market level selected and justification (e.g., auction data vs. retail comparables).
• Scope of work: what the appraiser did and did not do (inspection details, research sources, consultations).
• Comparable sales and market data: itemized, relevant, and adjusted for differences in size, condition, date, medium, and provenance.
• Analysis and reconciliation: how the appraiser weighted the data to reach the conclusion.
• Assumptions and limiting conditions (e.g., reliance on provided documents, no scientific testing performed).
• Appraiser’s certifications, qualifications, and USPAP compliance statement.
• Value conclusion(s) expressed clearly per item and as totals, with any schedules or appendices.

If any of these are missing, ask the appraiser to explain why. USPAP allows flexibility, but credibility must be maintained.

Practical Checklist: Hiring the Right Appraiser

• Match expertise to object: Ask for recent assignments in your category (e.g., mid-century design, Old Masters, Navajo textiles).
• Verify USPAP education: Ensure the appraiser has current USPAP coursework and follows USPAP ethics and reporting standards.
• Confirm independence: No contingent fees, no purchase offers, no financial interest in the property or outcome.
• Clarify intended use: Insurance, estate, donation, equitable distribution, damage claim. The use dictates the value type and market.
• Define the scope and fees in writing: Hourly or flat rate, estimated hours, travel, research expectations, report format.
• Ask about inspection: In-person when possible; if remote, confirm how condition and risk are addressed.
• Request a sample report (redacted): Review structure, depth, and clarity. Look for comps and analysis—not just numbers.
• Establish the effective date: Particularly important for estate or donation assignments.
• Gather documents: Provenance, invoices, prior appraisals, conservation notes, certificates, and high-quality photos.
• Know acceptance requirements: For insurance, ask your carrier what format they require; for tax matters, ensure the appraiser meets “qualified appraiser” criteria.

Print this list and use it when interviewing candidates.

FAQ

How often should I update an insurance appraisal?

Every 3–5 years is typical, or sooner if the artist’s market moves significantly, the item’s condition changes, or your insurer requests an update. High-volatility markets may justify more frequent reviews.

Is an appraisal the same as authentication?

No. Appraisals estimate value; authentication addresses authorship and legitimacy. Appraisers rely on existing scholarship, provenance, and expert opinions. If authorship is uncertain, the appraisal will reflect that risk with appropriate qualifiers and market data.

Why do two appraisals give different numbers?

They may have different intended uses (insurance vs. FMV), effective dates, market levels, or scopes of work. Even with the same use, two qualified appraisers can reasonably weigh comparable data differently. A strong report explains the rationale and data so differences can be understood and reconciled.

Can I appraise my own property for a charitable donation?

No. For U.S. tax purposes, donations over certain thresholds require a qualified appraisal by an independent, qualified appraiser who is not the donor, not related, and not compensated based on the result. Consult your tax advisor for specific filing requirements.

Do certificates of authenticity replace appraisals?

No. A COA or scholarly opinion addresses authorship, which can support value, but it’s not a valuation. Insurers, courts, and tax authorities look for a USPAP-compliant appraisal report with market analysis and a value conclusion tied to a specific use and date.

Qualified appraisals are built on independence, evidence, and clarity. By focusing on the intended use, the correct type of value, and the right specialist, you’ll avoid the most common pitfalls—and make smarter decisions for your art and antiques.