- What is it and who is qualified to prepare it?
- "If you plan to have an appraisal done, always check the credentials of the appraiser"
The three appraisal disciplines that matter most to individuals are real estate, personal property, and gems & jewelry. Real estate appraisers are licensed by the state, but sadly there is no state licensing for the others. I say sadly because anyone can hang out a shingle and call themselves a personal property or gems & jewelry appraiser when they may be no more qualified than the kid next door.
Gems & jewelry is self-descriptive. The personal property discipline covers virtually every property item, other than real estate, from cars to stamps, paintings to oriental rugs, watches and lamps, sports memorabilia to furniture, and on and on. There are appraisers of personal property qualified and certified to appraise almost everything you own!
In the 2006 Pension Protection Act (PPA), the Federal Government established the requirements for a qualified appraisal and defined who is qualified to do 
an appraisal for tax (IRS) purposes, such as for gifts, donations or estates. Very briefly, a qualified appraiser is someone who is tested and accredited by one of the major appraisal organizations (eg., ASA, AAA, RICS) and has passed the Uniform Standards of Professional Appraisal Practice (USPAP) exam within the past 5 years.
An appraisal is a legal document. Every appraisal is prepared with the knowledge that it might be called into evidence in a court of law. Therefore an appraisal needs to be a lot more than just a listing of your items with their values.
Many books and entire college courses have been devoted to exploring the elements of an appraisal, so there is no way I could describe it adequately in this short commentary. Briefly, every appraisal needs to include, among other detailed essentials, a definition of its function and purpose, the effective date, the type of valuation (Fair Market Value, Replacement Value, etc), certification that it is done in accordance with USPAP, the appraiser’s qualifications, and any assumptions, liabilities or limiting conditions.
As you can see, a lot goes into making an appraisal, and a lot may ride on its accuracy. If you plan to have an appraisal done, always check the credentials of the appraiser to make sure they are competent to provide you with a professionally prepared appraisal.
Summary: If an appraisal doesn't conform to USPAP and the appraiser isn't licensed (real estate) or accredited (other disciplines), it may not be accurate and probably won't hold up in court.
Links: American Society of Appraisers (ASA), Appraisers Association of America (AAA), Royal Institution of Chartered Surveyors (RICS), Uniform Standards of Professional Appraisal Practice (USPAP)
Notes: The classification of appraisal disciplines generally includes two others besides real property (real estate), personal property and gems & jewelry, namely business valuation and machinery & technical specialties. Most disciplines include recognized sub-disciplines or specialties. For example, a real property appraiser might focus on residential real estate, while a personal property appraiser might focus on decorative arts.
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