Appraising your Appraiser.
by andrea m. zorrilla, aaa | founder, amz art advisory & appraisals llc
June 2, 2025
the recently published article in the wall street journal, “what an Irs battle over an 850-year-old paintings means for your taxes”, is the most talked about article of the moment within the fine are appraiser community.
Why? Because it serves as the perfect case study for highlighting the importance of working with a qualified fine art appraiser.
Key takeaways from the article:
1. ”Be.Very.Careful."Forgoing diligence during your appraiser search runs the risk of impacting the legacy of your art collection, and carries the potential for immediate and future financial implications.
think of appraisals for the purposes of: insurance scheduling, responsible collection management, estate + legacy planning, wealth management, non-cash chartiable donations (8283), and estate tax scenarios, to name a few.)
2. The qualifications, experience and expertise of the appraiser matter, regardless of the appraisal purpose.
3. both The irs and most all Insurance providers have stringent guidelines as to who is considered a qualified appraiser and how an appraisal report must be prepared (also known as, uspap).
in the scenario of irs-related appraisals , If an artwork is determined by the IRS to be improperly valued they can dispute the assigned value and/or disqualify the appraisal all together. Red Flags include an overstatement of value, the appraiser did not apply the correct valuation methodology and/or the appraiser did not follow USPAP guidelines.
in an Insurance Appraisal Issues such as over-insuring or under-insuring artworks due to outdated or misinformed values can impact premium costs and overall coverage protections (think about the worst case scenario here of Damage/Loss).
bottom line, get to know your appraiser prior to officially engaging them to ensure their experience properly aligns with your needs and goals.
my recommended diligence guide below:
1. Is the appraiser compliant in USPAP? If so, is their compliance up-to-date and current?
The Uniform Standards of Professional Appraisal Practice (i.e. the "rules" mentioned in the article) are the ethical and performance guidelines a professional appraiser must adhere to when being engaged for and performing an appraisal.
after passing the initial 15-hour course + exam , Appraisers must take an USPAP-compliance update course every two years to be considered compliant!
2. Is the appraiser experienced in performing Non-Cash Charitable Donation, Estate Tax, Insurance Appraisal reports, etc. ?
3. Will the appraisal of your art collection require a generalist appraiser or an appraiser with nuanced expertise and specialization in a specific category?
4. Finally, are they credentialed members (in good-standing!) of one of the three nationally recognized professional appraiser associations? The Appraisers Association of America (aaa), the International Society of Appraisers (ISA) or the American Society of Appraisers (ASA).