Test Your Appraisal Knowledge — Take the Quiz

Take the following quiz* to see how much you know about personal property appraisals.     
*(Used with permission of the International Society of Appraisers.) 

Quiz Answers — Test Your Appraisal Knowledge

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.    $500.00 or more
b.    $2,500.00 or more
c.    $5,000.00 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 if they are also dealers.
d.    Only for family photographs, portraits, or other 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 price 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.
d.    Both b & 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.    They can 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 the 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 with the purpose and assigned use of the appraisal, a complete and accurate description of the property, and limitations and qualifying conditions.
b.    A statement regarding the appraiser’s financial interest or disinterest in the property.
c.    The appraiser’s qualifications.
d.    Inspection and effective dates of the 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 property 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 has passed three exams.
d.    All of the above.