By David Brownell Courtesy October 2000 Car Collector

In Praise Of

(Some)

Appraisers

by David Brownell
Courtesy October 2000 Car Collector

What A Good Appraisal

Should Include

OK, I confess, I'm a vintage car appraiser. That's not a reference to my age, which is also vintage, but defines the kind of cars I appraise. Been doing it since the early'70s; perhaps 2,000 cars in that time. That's not nearly as many as my friend Don Peterson, Car Collector's Editor Emeritus, but it’s still a lot of iron.

Appraisals are performed for any number of reasons; death, donation, divorce, pre-purchase, pre-auction, pre-sale, insurance, financing, de-accessioning, etc. How well they're done is quite another question. An appraiser friend recently told me of a horror story about an appraisal that cost the purchaser of the car more than he ever anticipated-and could have cost his life due to the dangerous condition of the car's mechanicals! That's one end of the spectrum, and one you obviously should avoid. But the unfortunate buyer of this car didn't go out and seek a lousy appraisal. One was foisted on him (not, I should emphasize, by my friend, who's one of the very best in the business). The results so far are legally messy and costly whether the appraiser involved perpetrated a sin of omission or commission.

What follows is a short course on how to pick a qualified appraiser-or at least avoid the unqualified-and there is no lack of either type around today.

Sometimes a potential client will ask if I am certified. I may be certifiable, but I'm not certified and I do not know of a single state or government entity that offers--or requires certification of vintage car appraisers. Many states have licensed appraisers, but these licenses are issued to damage appraisers and adjusters who have as much business evaluating a rare old car as I do trying to figure out whether a 1997 Mustang should be declared totaled after a crash.

The lack of certification may or may not be a good thing. Just as anyone can open a repair shop in most states, anyone can declare himself an old car appraiser. In one instance, an insurer for collector cars will even accept the appraisal of your local car club president, no matter if he hasn't bought or sold a car in years. There are appraisal organizations throughout the country, which vintage car appraisers can join, but there's only one-the American Society of Appraisers (ASA)-that has a course and exam specifically targeted for vintage car appraisal. But even that isn't "certification" per se. Rather, it's an assurance that the person has met some stringent standards, done some diligent studying, and passed the demanding ASA test. At the other extreme are appraisal organizations that will accept you as a member providing you have a discernible pulse and your check doesn't bounce!

In any collecting field, a qualified appraiser must possess experience and expertise. A good reference library is a must. Staying current with the market is a given. Having a database that charts market activity in a broad number of marquees is also a necessity. A solid resume is helpful in evaluating an appraiser's ability, but like any resume, some puffery may be included. Ask questions about experience and former clients; appraisers should give references if requested and not the name of his brother-in-law, thank you.

It's important that they know their own limitations. Some appraisers are true experts in a particular marquee or type of car, but are totally lost when it comes to other makes, models, or types. If they're honest with you and themselves, they will inform the potential client if they're not comfortable doing a certain type of appraisal, and try and help you find someone who can do the job well. For instance, I won't touch street rods, customs, or replicars, but I know appraisers who will do good work for clients on these cars.

Here's a scary example of an appraiser totally out of his element: He was asked to do a donation appraisal on a fairly obscure make of vintage sports car. The car in question was half restored and not very well at that. This appraiser, through research and methodology known only to him, put a figure on the car that was at least five times fair market value. The widow of the donor-through his estate-took a tax deduction for that amount. But once the receiving institution saw the car and got professional restoration cost estimates, some rather noisy alarm bells went clanging. She had to amend her tax declaration down to a more realistic level (about 1/6th the original appraisal) and the museum that was slated to get the car wanted nothing further to do with it. This could have turned into a troublesome legal situation for the appraiser, the museum, and the widow-all caused by an "expert" who had no idea what he was dealing with.

Good appraisers will talk to their counterparts about valuing a car if they feel they're in a bit over their heads. Thisis a perfectly acceptable reality checkand helps assure the client of a full andfair appraisal, so don't be concerned if your appraiser discreetly consults with his colleagues or a marquee specialist about your car, especially if it's a one-off or an odd ball. He's trying to do things right.

There's no one right way to write an appraisal but there are plenty ofwrong ways. The latter include (and I've seen examples of all these) handwritten appraisals on service repair order sheets; unsigned appraisals; one-liners stating, "I think this car is worth $50,00O." or "This is a very rare car and is worth $100,00O."; and many other sorry excuse,,; for a proper appraisal.

A fee should be based on the work performed rather than on a percentage of the value of the vehicle. Whether this is an hourly fee or a flat fee per car is the appraiser's own choice and policy, but expect to pay travel expenses over and above the appraisal cost in any event.

This, as they say, is not rocket science, or even target practice for that matter. But you'd be astounded at how few collector car appraisals are actuallystructured this way. If you're curious about how your potential appraisal candidates write their work, ask to see a sample of a recent appraisal (with client name and numbers blacked out, of course).

Be wary of appraisals via photographs. Nothing beats a personal inspection. Photos can deliberately or inadvertently conceal damage or faults that would be readily apparent during a hands-on inspection. To me, an appraiser who doesn't care if he sees your car in person or values it througha photo is more interested in a quickand easy sale than doing a proper job.

This information shouldn’t discourage you from having your carsappraised. Quite the contrary. There are a number of really excellent, knowledgeable, conscientious, and highly informed vintage car appraisers out there. What you have to do is apply your own due diligence, just as you would when hiring an accountant or attorney. That and following the advice above will help you attain an appraisal that's worth what you paid for it.

Ataminimum, a good, acceptable appraisal should include:

The name and address of the client.
The make, year, model, body style, VIN number, and color of the car being appraised
The reason for the appraisal.
When and where the appraisal took place.
Descriptions of the condition and authenticity/originality of each system or element of the car, such as interior, paint, tires, body, fenders, plating, @echanicals, and so , forth.
Comparables with other cars of the same type, which have recently sold, if available. A single value for the car unless the client has asked for a price range.
The signature, address, and phone number of the appraiser.
The appraiser's resume as an attachment if so requested by the client or volunteered by the appraiser.
Photos of the car taken during the appraisal if requested by the client or included inthe appraisal cost by the appraiser.