Tag: Qualitative Ranking

Adequate Valuation Narrative

What is needed to explain why the value is the value in a competently prepared appraisal?

Personal property appraisers must demonstrate by explanation and when possible by photograph why the sale of another similar item supports the value of another (in their report, referred to as the subject property). Often comparable sales are named and then the appraiser clarifies a citation by explaining how the subject property compares to the “comparable sale example”. A sale could also be introduced that superficially appears to be similar in character, but in reality, is not due to a difference in the property’s characteristics or due to a difference in market level investigated.

compares by maker (same or different)
compares by medium (same, similar or different)
compares by dimensions (same, similar or different)
compares by subject matter (same, similar or different)
compares by style of execution (same, similar or different)
compares by year produced (same, similar or different)
compares by condition (same, similar or different)
compares by qualitative ranking (same, similar or different)

Qualitative ranking must be addressed, as painter X could paint a landscape, oil on canvas, the same size, in the same style that is in the same physical condition, in the same year as the subject property but one painting is consistent with the best landscapes produced by this artist, while another is strictly uninspired compositionally. Numerically one effort is a “10″, while another is limited to a “5″. A knowledgeable collector will pay more for a “10″, than a “5″. The value of the artist’s best work outstrips an example that is relatively mediocre.

The appraiser’s goal is to create a flow chart (in words and when possible, visually) to assist with the recognition that the value determination is logical and supportable and aligned with the date of valuation and the intended use of the valuation.

The day of the “trust me” document has been over for a very long time.

Corinne Cain, ASA
Accredited Senior Appraiser
Personal Property/ Fine Arts & American Indian Arts


What is Qualitative Ranking ???

Two paintings are by the same artist, roughly the same size, in the same condition, depicting the same subject matter and painted within a year of each other.  Why is one valued 1 1/2 times the value of the other ???  This is also true of pottery or of any type of hand-made item you can think of.

Artist’s products vary qualitatively.  A sharp appraiser will be able to recognize the item that is more successful in its execution, as will an astute collector, execution being technical as well as its intention and balance.

Corinne Cain, ASA
Personal Property/ Fine Arts & American Indian Arts


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