Here are some of the most frequently asked questions about the International Automotive Appraisers Association. If you have a question that’s not answered here just e-mail us and we will try to help you.
Q. Who needs appraisals?
A. Individuals, businesses, insurers, attorneys, the legal system, Estates and Charitable Contributors use appraisers and their compliant appraisals.
Q. What can you use appraisals for?
A. A properly prepared and compliant appraisal can be useful when selling or buying a vehicle. A credible appraiser can establish an accurate value when acquiring stated or agreed value insurance policies. Attorneys and the legal system themselves use appraisers and their compliant appraisals, to help settle legal disputes. Individuals, accountants and legal advisers use appraisals to justify charitable contributions and document vehicle values for estates. Appraisals are also used to resolve disputed insurance total loss values as allowed under your insurance policy Appraisal Clause.
Q. When do I need an appraisal?
A. An appropriate time to have an appraisal performed, is before a purchase and when considering to buy or sell. A good rule of thumb, is to re-appraise before someone says, “that’s what it looked like then, what does it look like now”. Re-appraising for insurance or legal documentation is always a wise decision!
Q. When should you have your vehicle appraised?
A. The most sensible time would be before something happens to it. It is never too early to have your project vehicle or completed vehicle appraised. An appraiser can document and declare its’ value during construction, so you can attain proper coverage. An experienced appraiser can even value a vehicle after an accident, fire or theft using automotive forensics.
Q. Should I still have my vehicle appraised, when insurers don’t require one?
A. Appraisals are documentation of a vehicle’s value and existence. In some instances, it can prevent the pitfalls of an inappropriate totaling of the vehicle and be the only proof available on the event of fire or theft.
Q. Can I have a car inspected by an appraiser?
A. IAAA Appraisers provide a means to have a car inspected and valued. Saving you time and money.
Q. What do I do in the event that my car is totaled and I don’t agree with the amount your insurance company is offering?
A. Vehicle owners have several options when this happens.
1st Option is to try to negotiate the disputed value.
2nd Option is to hire an attorney.
3rd Option is to read your policy and invoke the Appraisal Clause Hearing if it applies.
Follow the link read more about this option. http://www.automediatorsassociation.com
Q. Are there standards that automotive appraisers follow?
A. Uniform Standards for Automotive Appraisal Procedure (USAAP) was established by the IAAA in 2007.
Q. Are IAAA/USAAP available for review or use?
The USAAP is for the review and use of accredited members of the International Automotive Appraisers Association (IAAA), the All Auto Appraisal Conference (AAAIC), the Auto Mediators Association (AMA), Automotive Appraisal Standards Board (AASB), State and Federal government entities, and governing bodies.
Public or any dissemination of this document is not sanctioned.
Q. Were there recognized standards encompassing specific procedures for the establishment of motor vehicle values prior to the IAAA/USAAP?
A. There were no specific standards applicable to the automotive industry.
Q. Do appraisers adhere to a code of ethics?
A. IAAA members abide to ethics as prescribed by the IAAA/USAAP.
Q. How often do standards change?
A. IAAA/USAAP in an ongoing process.
Q. Do appraisers adhere to confidentiality standards?
A. IAAA members abide to applicable confidentiality laws as prescribed by the USAAP.
Q. How can IAAA member credentials be verified?
A. IAAA members are listed by State or Region on the “find a member” links on this website.
The IAAA identifies Additional Certifications for members who have participated in the training and passed the test for each program. IAAA certifications are terminated with membership.
Q. Can an appraiser establish values for an Estate or Charitable Contribution?
A. Only qualified appraisers can perform appraisals for Estates or Charitable Contributions? “Under IRS Regulations”
Q. Are IAAA members considered qualified appraisers?
A. Yes.
Q. What is the IRS regulation to establish a qualified appraiser?
A. Part III, Declaration of Appraiser (Taken from the IRS website)
If you had to get an appraisal, you must get it from a qualified appraiser. A qualified appraiser is an individual who meets all the following requirements.
1. The individual either:
a. Has earned an appraisal designation from a recognized professional appraiser organization for demonstrated competency in valuing the type of property being appraised, or
b. Has met certain minimum education and experience requirements.
2. The individual regularly prepares appraisals for which he or she is paid.
3. The individual demonstrates verifiable education and experience in valuing the type of property being appraised. To do this, the appraiser can make a declaration that, because of his or her background, experience, education, and membership in professional associations, he or she is qualified to make appraisals of the type of property being valued. The declaration must be part of the appraisal. However, if the appraisal was already completed without this declaration, the declaration can be made separately and associated with the appraisal.
4. The individual has not been prohibited from practicing before the IRS under section 330(c) of title 31 of the United States Code at any time during the 3-year period ending on the date of the appraisal.
In addition, the appraiser must complete Part III of Form 8283. See section 170(f)(11)(E), Notice 2006-96, and Regulations section 1.170A-13(c)(5) for details.
If you use appraisals by more than one appraiser, or if two or more appraisers contribute to a single appraisal, all the appraisers must sign the appraisal and Part III of Form 8283.
Persons who cannot be qualified appraisers are listed in the Declaration of Appraiser. Generally, a party to the transaction in which you acquired the property being appraised will not qualify to sign the declaration. But a person who sold, exchanged, or gave the property to you may sign the declaration if the property was donated within 2 months of the date you acquired it and the property’s appraised value did not exceed its acquisition price.
An appraiser may not be considered qualified if you had knowledge of facts that would cause a reasonable person to expect the appraiser to falsely overstate the value of the property. An example of this is an agreement between you and the appraiser about the property value when you know that the appraised amount exceeds the actual FMV.
Usually, appraisal fees cannot be based on a percentage of the appraised value unless the fees were paid to certain not-for-profit associations. See Regulations section 1.170A-13(c)(6)(ii).
Identifying number. The appraiser’s taxpayer identification number (social security number or employer identification number) must be entered in Part III.
All answers pertain to an IAAA qualified appraiser.