The Personal Property Appraisers Post: legal

FEATURED ARTICLE

Quality Condition Adjusted Mean Methodology: A Comparative Valuation Tool for the Appraiser

This paper explores the process of using a quality/condition adjusted mean methodology (Q-CAMM) to determine value of a subject property. A quality/condition adjusted mean regulates comparable values based upon condition level and quality points, and arrives at a final value conclusion relative to the subject property’s intrinsic features and state of preservation. Q-CAMM continues to rely upon the personal opinion and experience of the appraiser while introducing additional mathematical components to basic statistical averaging. Click the image to read the article by Todd W. Sigety, ISA CAPP.

(First Published in the Journal of Advanced Appraisal Studies - 2008)

FEATURED ARTICLE

Reconceiving Connoisseurship, by Carol Strone

Connoisseurship is a dead language and a dead art. Or so art theorists with disdain for aesthetic judgments would have us believe for some 40 years now. Indeed, connoisseurship has long languished — unfashionable and unpracticed — in academic circles and beyond. But still it matters for many people, and there are signs of a renaissance, even in the most unlikely realms of the art world. The time is ripe for reconceiving connoisseurship as relevant to furthering culture and seeing with maximum powers of observation that which humankind creates. Click the image to read the article by Carol Strone of Carol Strone Art Advisory, NY.

(First Published in the Fine Art Connoisseur, March/April 2010)

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Broad Evidence Rule

Friday, October 23, 2009 Reporter: Todd W. Sigety, ISA CAPP 3 Comments

Posted by Todd W. Sigety, ISA CAPP

Last year for the Appraiser Workshops Blog I found a well written and informative article on litigating insurance claims. Although much was not applicable to the personal property appraiser, within the article was a very good interpretation of the Broad Evidence Rule. The Broad Evidence Rule (BER) in effect states that "every fact and circumstance which would logically tend to the formation of a correct estimate of the loss" may be considered by the courts. It is of course up to qualified appraisers to place a value or multiple values on property based upon the facts and multitude of circumstances.

The Broad Evidence Rule is defined on Forbes' site Investopedia as "A rule outlining the guidelines insurers must go about determining the value of lost, stolen or damaged property. The broad evidence rule does not specify any one method to value any one piece of property, only that the means which most accurately displays the true cash value of the property will be used." Forbes clarifies the definition with "The broad evidence rule is used by insurance companies to determine the cash value to be paid out to the insured in the event of a claim. As opposed to using the traditional cash value (replacement cost minus depreciation), the broad evidence rule can take into account such factors as the age of the property, its tax value and any possible profits the item may have accrued".

David Maloney in his popular appraisal reference book Appraising Personal Property: Principles and Methodology (page 112) expands on the BER interpretation with "The Broad Evidence Rule (a.k.a., The McAnarncy Rule) states that there are no fixed or rigid guidelines for the determination of the amount of recovery in case of loss. The two standards normally used (fair market value or replacement cost (new) less deprecation) are merely guides, and are not the sole determination of actual cash value. The rule allows for consideration of all the facts and circumstances (such as degree of obsolescence at time of loss, property has no market value-in-use, profitability, owner's opinion of value) which logically tend to develop a correct estimation of value of the destroyed or damaged property for the purpose of ascertaining the actual cash value at the time of loss or damage".

Because of the wide spread acceptance of the BER by the judicial system, much is left open to interpretations by the court. The BER has been viewed as both a positive and a negative in settling insurance claims. In any event, appraisers working on insurance claims should be aware of and familiar with the BER and how it is applied. The following excerpt on the BER is an excellent starting point. It is a good addition to what is typically found in personal property appraisal theory and methodology texts as it is written by attorneys.

(Click Read More for the rest of the article)