My Tips for Building an Amazing Collection of Art

Several clients have asked me for collection advise this year, so I wanted to compile a list and share my thoughts. Here are My Tips for Building an Amazing Collection of Art.

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My Tips for Building an Amazing Collection of Art

·       The oldest advice is still the best… buy what you like and want to live with.  The corollary to that advice is to know what you are buying.  The more knowledgeable you are, the better pieces you will choose.

·       If you are interested in work by living artists, get involved in your local gallery scene.  Local dealers normally have a stable of artists they represent.  They curate their stable of artists based on their own tastes and are happy to tell you all about any of their artists. Local galleries also host openings and gallery walks that are fun social events where you can meet the artists, see the work in person, and ask any questions you have. 

·       Consider visiting and buying from multiple dealers.   Your local gallery dealers’ association likely has ‘art walk’ events where they coordinate their openings a couple of times a year.  It’s the art equivalent of a ‘pub crawl,’ and a great deal of fun whether you imbibe in the free refreshments or not.

CADD - Contemporary Art Dealers of Dallas

·       When you travel, visit local galleries.  You might find a new artist to collect and a good piece of art is a better remembrance from a vacation than a cheap tchotchke.  

 ·       Be aware of Art Fairs in your area - there are art festivals and craft shows throughout Texas and in neighboring states that are worth attending. Fairs let you see and support one-of-a-kind work from emerging and local working artists and they are a great way to meet the artists in person and chat about their work. In DFW there is the Dallas Art Fair, the Denton Jazz Festival, the Deep Ellum Arts Festival, the Houston Music & Arts Festival, the Main Street Fort Worth Arts Festival, the The Woodlands Waterway Arts Festival, Art in the Square in Southlake . . . to name a few.

·       In a retail gallery, a gentle hint about discounts can pay off.  Many galleries give their return clients a small discount as a client loyalty bonus, 10-15% is common.  It never hurts to gently ask for a discount. 

Scottsdale Art Auction, 2016 - The auctioneer is taking bids on an original Kyle Polzin painting

·       If you are interested in earlier works, pieces by deceased artists, pieces by internationally known artists or pieces by western artists. consider buying at auction. With today’s fast online communications, collectors are finding it easy to buy great pieces directly from auction. Although attending in person is fun, exciting, and highly recommended, you can also bid online and watch the auction live online.  If you’ve never bought at auction and want some help, we are available to advise you or place proxy bids on your behalf.

·       If you want to buy at auction, check out the auction house before you bid.  You want to buy from a business with a great reputation.  I would avoid the ‘online-only’ category, the weekend-hotel ballroom bankruptcy auction, and any auction on a cruise ship. 

·       Consider getting pre-purchase advice when considering a new piece.  Call when you are considering a piece and let an appraiser do some background research before you buy.  The fees you pay for a few hours of research can give you objective information on the artwork and help you know the fair range to pay.  Knowing the fair range to pay can give you a strong negotiating position and save a LOT of money.

·       If you want to collect prints, spend some time learning about the different types of printmaking.  There are lots of different ways prints can be created.  Each has a specific look.  This is a bit over-simplified, but the most important thing to know is this… is the print original or a reproduction?  Original prints are collectible.  Reproduction prints use photomechanical technology to copy the work of an artist. Reproduction prints are wall décor.  They will never be collectible.  Original prints might be collectible and might rise in value. There are no guarantees, of course.  Just avoid reproduction prints and stick to collectible prints.

As always, give us a call or shoot us an email with any of your fine art needs, we are happy to help!

-Brenda

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Charitable Donations of Art: A Few Important Rules to Know

Every year in December we get a few calls from potential clients who are desperate to make sure we can do a donation appraisal for them before the end of the year.  Usually, they’ve had a recent meeting with their accountants who suggested a noncash charitable contribution as part of a tax-reduction strategy.  Of course, the most desperate callers are phoning in mid-late December.  So, every year we get the opportunity to walk at least a few potential clients through the rules that apply to such donations.  I thought providing a simple set of instructions here might be of help.  

First, we, the appraisers are not the first call to make.  The first call/s to make are to potential 501(c)3  charitable organizations to whom you are considering donating.  The appraisal can be done at any time after the donation is accepted up until the filing of your taxes for the year.  If the appraiser is called first, the appraisal for charitable donation is only valid for six weeks prior to a donation being made.  If the donation is made later than six weeks from the effective valuation date of the appraisal, the appraisal is invalid.  Call us after the artwork has been accepted for donation.

 Here a few items to be aware of when considering a charitable organization:

·      The Charitable organization has to be a valid 501(c)3 organization.

·      Your donated items have to meet the “related use” clause, meaning if you are donating artwork, showing artwork must be within the donee organization’s purposes.  The organization does not have to be an art museum.  But showing art and maintaining an art collection must already be a part of their agenda as an organization, at least to some capacity.  Many hospitals, universities and other schools might qualify.  So, some thinking outside the box can help you find the right charitable organization.  

·      The donee must keep the artwork for a minimum of three years.  Giving artwork to your church or synagogue’s yearly fund-raising dinner does not qualify.  That’s still charitable giving, of course.  But the donor will only be eligible to receive donation credit for the amount the item sells for at the event, not the fair market value.   

·      You cannot just choose an organization and show up at the doors with your items in tow, looking for a place to leave them.  Most eligible charitable organizations where artwork would be donated have committees in place to review and accept or deny potential donations.  Some are only looking for items by certain artists that fille specific holes in their collections.  Others have a broader scope of items they will consider.  But you must contact the potential donee, ask about the process of accepting donations and get the ball rolling.  This can take time.  If you have waited until December to pursue a donation,  you may be looking at the next tax year for the donation to occur.  

Once the donation is accepted, you may need an appraisal from a qualified appraiser. Here are a few things to be aware of regarding the appraisal: 

·      If you are donating an item or group of related items that are less than $ 5,000, you are not required to have an appraisal.  If above that amount, an appraisal is required.   

·      If the value of the items is above $ 5,000 but under $ 20,000, the appraisal is required but you are not required to include a copy of the appraisal with your tax filing.  If the value is $ 20,000 or above, a copy of the appraisal is required to be included with your filing.   

·      If you are having an appraisal done, the appraiser will provide you with the form 8283 for inclusion with your taxes.  This form has elements to be filled out by the appraiser, you as the donor, and the donee organization.  You should take the 8283 form from the appraiser, fill out the elements that pertain to you and secure the signature acknowledging the donation from the charity.   

·      The Declaration of the Appraiser found on form 8283 warrants that the appraiser is qualified to appraise the items, that he/she has no financial stake in the artwork or the stated value and alerts the appraiser that if he/ she is party to gross misstatement of  values within the appraisal, he could be prosecuted and or fined.  

·      The IRS provides a definition of who is a ‘qualified appraiser.’ Not every person who holds themselves out to be an appraiser of personal property meets the definition of being “qualified.”  So, if you are considering a donation, make sure to review the Professional Profile of any appraiser you are considering.  Make sure they are at the very least accredited with one of the three main personal property Appraisal organizations (ISA, ASA or AAA) and they do appraisals of the type of property you need appraised for IRS purposes on a regular basis.  

·      IRS appraisals are definitely subject to review.  Higher value artwork will likely be reviewed by the Art Appraisal Review Board, a volunteer group of artworld professionals. Your charitable deduction can be lowered or eliminated if the appraisal is not properly prepared.  For higher value artwork, the appraiser must include images of all comparable pieces considered and a full written analysis of the valuation process and conclusions.   

·      As the donor, you are eligible to get a tax credit for the Fair Market Value of the donated items.  This type of value has nothing to do with the amount you paid for the pieces, how many years you have owned them, or the values they are carried at under your insurance.    

·      The IRS defines fair market value as “the price a willing, knowledgeable buyer would pay a willing, knowledgeable seller when neither has to buy of sell.” (Page 2- “Instructions of Form 8283”).  Defining the appropriate marketplace in which to seek values and making credible arguments regarding the FMV of each item is the job of the appraiser.   That is why you need a well-trained, seasoned appraiser!

·      The appraiser you intend to engage should be willing to speak with you about the process of the appraisal and should be familiar enough with the work to be appraised to know whether their services are required.  Remember, an appraisal is not necessary if the value of the donation is under $ 5,000.  However, an appraiser is not ethically allowed to speak to anyone about a desired value result.  A good appraiser would not even consider taking on a job with an expected value conclusion. That is strictly unethical.   

When donating or downsizing your art collection, it is imperative you understand the options available to you. We understand the amount of time and emotion that goes into building a collection.  That same attention is required when finding the right place to gift a piece of art.    

If you are in need of an appraisal for your artwork donation, give us a call.  We have written hundreds of donation appraisals over the years for our clients, many of which have gone to the IRS Art Appraisal Review Board.  Our appraisals are written to the highest quality, conform to the Uniform Standards of Professional Appraisal Practice (USPAP) and to the Ethical Standards and Report Writing Standards of the International Society of Appraisers.

We would be happy to be of service.

Brenda

A Few Great Book Finds for Your Holiday!

I hope this finds each of you HEALTHY and anticipating a blessed, if possibly smaller gathering of loved ones this Thanksgiving. As we are approaching the holiday season in what could truly be described as a uniquely trying year, I thought I would share a new discovery of mine that might perk up your holidays.  This blog is aimed at art collectors and I have discovered over the years that art collectors love stories about the weird and wonderful art world. A quick personal disclaimer… I am an avid reader of novels and devoted listener to audio books.  On the treadmill, in the car between appointments, sliding off to sleep, you will find me raptly listening to the next story.  I love a well-crafted mystery, a great crime thriller, but my favorite genre of them all is historic fiction.  Having covered every book written by Ken Follette, John Grisham, John Hart, Pat Conroy, James Lee Burke, his talented daughter Alifair Burke and scads of single novel offerings by various authors, I was casting about for a new author to fall in love with when I saw a listing for B. A. Shapiro and her three novels inspired by real occurrences in art history.  Shapiro uses artwork, dealers, the mysteries and powers of the art itself and those who make, collect, curate, sell and steal the works in her thrilling novels.  What a find! 

The books are listed here in order of publication, oldest to newest.  I will give a brief synopsis so that you can choose one to begin. The storylines are separate so you can start with any of them.  Once you read the first, Ms. Shapiro’s style will hook you and your holiday reading list will be full.  First a disclaimer… normally, book reviews are released just at the moment the book is released to the public.   This review is way too old to be helpful in that way. These books have been out for some time and Ms. Shapiro was a celebrated author of many novels before she began to weave her characters into art history.   I am writing this to celebrate my joy in finding an author new to me.  If you’ve already read these, I hope you enjoyed them as much as I did. 

The Art Forger: A Novel.  Published May, 2013

The story revolves around the very real 1990 theft of thirteen works from Boston’s Isabella Stewart Gardner Museum.  That theft has never been solved; the works have disappeared despite the ongoing efforts of the FBI and several other international law enforcement teams and despite a standing reward of $ 10 million for information leading to the recovery of the pieces.  Ms. Shapiro uses this historic event as a jumping off point for her story that involves a struggling painter who keeps a roof over her head by painting very good and perfectly legal reproduction copies of known masterworks for an online dealer, a request to her from an upscale gallery owner to copy one of the best-known lost paintings, one of Degas’ “Bathers,” from the original painting, and lots of interweaving of possible personal relationships between Ms. Gardner and the artists whose work she collected, with back-stabbing and intrigue in the modern art world.   

Be careful if you think you are learning the actual back-room history of the events.   The theft was real.  The prejudices and bad dealings of artworld insiders ring true.  But the rest is pure fiction, even the Degas masterpiece around which the story swirls.   While there were three Degas sketches taken in the heist of the museum, Degas’ “Bathers” was not among the stolen pieces.  This rollicking tale gives some great, imagined historical relationships, some real backroom information on how art forgers work and throws rocks through the glass houses of modern-day art experts and museum elites.  

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The Muralist: A Novel.  Published November, 2016

This offering inserts the main protagonist, Alizée Benoit into the friendship group of some of the artists who were to become leading abstract painters, Mark Rothko, Lee Krasner, Jackson Pollock and crew.  The story begins in the 1930’s, in the lead-up to WWII, when this group of painters was employed by the Works Progress Administration to produce social realist murals in public buildings.  Ms. Benoit is a French Jew with lots of family in Europe, desperate to escape the voracious sweep of Nazism bearing down on all European Jews.  The story is panoramic in its breadth, spanning from the 1950’s to 2015 and introducing great artists and Eleanor Roosevelt as characters.   It questions the America First politics of the 1930’s that not only kept America out of the war but also denied access to almost all refugees and could have saved so many lives.   

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The Collector’s Apprentice: A Novel. Published June, 2019

This story follows the life of a young Belgian woman who grew up in a wealthy art-loving family but has been thrown out by them because her fiancé bilked her family out of their wealth and the family believes she was part of the con.  She flees to France and changes her name.  She is desperate to find honest employment to support herself and because of her fluency in both French and English, she gets an introduction to a young American collector who is voraciously buying up Impressionist and Post Impressionist works of art for a museum he intends to establish in his hometown of Philadelphia.   The American collector is based on the real-life eccentric and cantankerous Albert C. Barnes.  The story wraps them into the world of the art elite in Paris, including Gertrude Stein’s salon group, with Picasso, Matisse and many others.   Shapiro plays with the known combativeness and unique sensibilities of Barnes, weaving the real-life battles he waged with his hometown to show his collection just as he wanted it shown, to keep control of the collection and severely limit access even though he demanded tax-exempt status.  The collector and his assistant travel back and forth between Europe and America.  A love story between our young Belgian protagonist and Henri Matisse develops, complicated because the collector has also fallen in love with his assistant.  The untimely death of the American collector propels the story forward.  Caution once again… while based on the Barnes collection, our fictional collectors have a well-written interesting story that is not at all limited by historical truth.  

If you are as passionate about the intrigues of the art world as I am, you will adore these books.   And since the holidays are approaching, we should all take some time to curl up with a good book.  Wishing you and yours health, peace, joy and great art finds! 

Best,
Brenda

Addressing the COVID-Elephant in the Room

During this time when we are sheltering in place, watching our favorite movies, revisiting a favorite book and spending time with our families while trying not to worry, remember that we turn to our faith and the arts to help us get through uncertain times.  We turn to the artists and creatives to remind us of beauty and to give us hope when hope is flagging.
 
Signet Art continues operations despite the upheaval caused by the COVID-19 Pandemic. Like many other small businesses, we are doing our part to combat the spread of the Corona Virus by complying with all state and local directives, including social distancing, use of appropriate PPE, employing increased hygienic protocols and limiting all nonessential travel. We have operated from a home-based office since 1987, so complying with shelter-in-place order has had little impact on our daily internal business activities, with the exception of dispersing our small staff to work from their individual homes until such time as it is deemed safe to return to a common office environment. 
 
Since the shelter-in-place order, we have been busy serving our clients, completing research on projects started prior to the stay-at-home mandate, delivering appraisal reports, brokering artwork sales, and providing pre-purchase consultations. All of this is done quite efficiently using digital technology without the need for direct personal contact.
 
The only thing certain is…Change
We do miss seeing and serving you in person and look forward to a day very soon when we can return to doing just that. In the aftermath of this pandemic, it is clear that some things about the way we all conduct our lives and our businesses will be changed forever. What those changes will be is not self-evident. But, certainly our appreciation for the freedoms and privileges we do enjoy will be greatly enhanced. Complacency will be replaced with gratefulness and that will be a positive change.   
 
In the spirit of prayer and anticipation of the resolution of this crisis, I have been thinking of artwork that deals with the theme of Hope. Of course, throughout time, artists have addressed the whole spectrum of human emotion and the human condition. Visual artists have dealt with themes of conflict, adversity, social change, historical events, our various identities as human beings, progress, and our environment—whether beautiful or devastated.  
 
There is Hope
This week I went looking for artwork that deals directly with what we most need now, HOPE.  Shown here are some of our favorite pieces in that category. Kadir Nelson’s new painting, “After the Storm” is a perfect example of the theme.  Nelson was just interviewed while unveiling this latest painting on last week’s CBS Sunday Morning.  

Nelson is an award-winning illustrator whose work has been used in several children’s books about African American heroes and history. His latest painting reminds me of Norman Rockwell’s “Golden Rule.”

Left: Kadir Nelson, After the Storm, 2020 | Right: Norman Rockwell, Golden Rule, 1961

Like the Rockwell painting, it is a closely grouped gathering of people of various ages and ethnicities. In Rockwell’s painting, the people appear to be studying the words of the well-known axiom about treating others as we would like to be treated. In “After the Storm,” the group’s gaze is directed toward a light in the distance as storm clouds dissipate above and behind their heads. They are drawn together, looking toward a new common bright future.   

Left: Edward Hicks, The Peaceable Kingdom, 1845 | Right: Robert Indiana, Hope, 2009

Some other pieces evocative of Hope are: Edward Hicks’ series called “The Peaceable Kingdom,” in which he portrays wildlife of all types peacefuly gathered in the foreground and William Penn making peace with Native people in the background; Robert Indiana’s “HOPE” sculpture, a follow-on to his “LOVE” sculpture; and Lichtenstein’s “Sunrise.” These inspirational pieces are offered here to brighten your day and inspire you to start thinking toward a brighter future that we all hope is imminent. 

Roy Lichtenstein, Sunrise, 1965

What can we do to serve you now?  
Now is a great time to be planning the future of your art collection. Is there a particular artist you are searching for, a particular type of piece you want to add to your collection? Call and let’s discuss the details of what you have in mind. Now is a good time to begin the search process. Have you been thinking of selling a few items? Let’s start talking about the best way to do that in order to maximize your outcome. Sales at auctions often take many months of planning to execute to your best advantage. Now is the time to be discussing things that you might want to offer in fall auctions. Of course, it’s also possible that we might be able to find a private buyer for your pieces right away.
 
We are also here to speak with you about your appraisal needs. We urge you to call and get on our appraisal inspection schedule now in order to avoid long delays once the “all-clear” bell will have sounded. If your need is urgent and time-sensitive, please call to discuss whether the onsite work can be done in a manner that is safe for all. We would not ever do anything that would endanger our clients’ health or our own. Most of an inspection is close-up with the objects and can be safely distant from the owners. Our white glove service is easily enhanced to nitrile gloves, a face mask and antibacterial wipes. Appointments can be conducted in an appropriately socially-distanced setting.

Choosing an Appraiser - Essential Questions to Ask: Part II

Earlier, we posted Part one of this blog with the first six questions to ask when choosing an appraiser.  Here are the final six questions with their explanations!

As explained in Part I, there are many reasons you might need an appraisal of personal property.  But where to begin?  And how do you know you have the right person to help you?  There is no national licensure requirement for personal property appraisers.  Levels of expertise and years of training vary widely.  So, you simply must ask the right questions in order to find the best person to fit your needs.  Here is the rest of the list with the final six questions that will make choosing the right person a breeze.  

·     I’ve got a client with a full house of various items. Can you handle that? How?

·     How long have you been in business? 

·     May I get a copy of your resume/CV? 

·     What locations/cities do you serve? Are you available for travel?

·     How do you charge for services? What will be the charge for services? 

·     What are my expectations for your services? Walk me through the process….

I’ve got a client with a full house of various items. Can you handle that? How?

As stated above, most well-trained appraisers stick to their area of expertise.   But what if you or your client have a whole house of personal property, with various types of goods and levels of quality?  Should you have to call around and hunt up lots of different appraisers? The simple answer is, no. Experienced appraisers are used to working in teams.   As you are interviewing for the appraisal job you have, tell each appraiser the type of job you have.  Let them help problem solve to get the job done efficiently.  At Signet Art, our goal is to help our clients get their need handled.  Appraisal of an entire estate?  No problem.  We have colleagues who specialize in just about any type of item found in a home.  We have worked as team lead on such appraisals and have also worked as a team member.  We will be happy to organize a team to get every type of item appraised and include all within the same report.  We will work with only the best-trained.  The qualifications of any proposed team member can be discussed with you in advance. Their Professional Profiles will be include along with my own in the appraisal report.   

How long have you been in business? 
This is an important question.  You want to know that the person you choose is a solid business person, with years of experience under their belt. 

May I get a copy of your resume/CV? 
Absolutely!  Please peruse it and ask any questions on your mind.  Compare with other potential candidates.  If someone you speak to waivers at all on this question, best to move on.  

What locations/cities do you serve? Are you available for travel?
Most appraisers generally serve a given geographic area for most of their work.   Within that geographic area, charging for travel time is rare.  But outside the normal area of service, there may be travel charges.   At Signet Art, we serve all of the north Texas metroplex, Dallas, Fort Worth and surrounding communities.  We also regularly get called to some fairly far-flung areas.  I am happy to travel for inspections wherever the art is. Many times, there are no well-trained appraisers in a given geographic region.  Other times, our clients own more than one home and need appraisals at each location.  Such appraisals are better done at the same level of expertise.   Out-of-pocket expenses for travel do apply.  We do our best to keep travel costs at a minimum and provide documentation for out-of-pocket expenditures.   When the importance of the collection warrants, much is to be gained by hiring the best trained appraiser. 

How do you charge for services? What will be the charge for services? 
Good appraisers are (or should be) independent business owners, not the employee of a gallery that sold you the art or an auction house that is culling for items to sell in the future.  Such independence insures unprejudiced valuations.   Most appraisers charge an hourly fee for onsite inspection, research and report writing time.  Some do charge for travel time on all projects but most do not have such charges in their local service area.  Although it is not considered unethical, charging a flat-fee per piece is uncommon. Charging a percentage of the valuation amount based on the outcome is a clear violation of USPAP rules and is unethical.  So, avoid anyone who is paid in that way.  It is considered a violation of ethics for individual appraisers to openly discuss their hourly fees with one another since that might lead to a form of price-fixing.   However, you will likely find a similar per-hour range if you interview several appraisers in a given area.  Normally, the hourly fees for those with the most experience will be slightly higher than less-experienced colleagues.   The lower rates for less experienced appraisers are meant to entice potential clients with a lower hourly rate.  Does this mean that the overall cost of the appraisal will be lower with a less experienced appraiser?  Not at all! The scope of a project depends not only on the number of items involved but the level of research and level of due diligence required.  One appraiser might allocate two hours to a particular task while it takes another half that time.  The final invoice from a less experienced appraiser might be well above that of a more experienced colleague whose hourly rate is slightly higher. 

So what is the best solution for you, a potential client? Well-trained appraisers do not normally have the time to come out and look over a potential project in order to give a bid on the work.   Our desks are already full of paid work that needs to be completed on time for current clients. We are happy to discuss our hourly rates with a potential client. However, unless we can be very certain of the scope of a given project, we are unable to estimate the final cost of the appraisal.  Since no one likes open-ended invoices,  I am happy to quote an expected range of hours for project completion once the onsite inspection is complete.   I will discuss with you the number and type of pieces included in the appraisal and give an ‘x-y’ range of hours for completion of the project.  Our hours will not exceed that onsite quote unless there is some unforeseen expansion of the scope of the project.   

What are my expectations for your services? Walk me through the process….
The appraisal process starts with you choosing us for the job.  The phone interview allows you to get all your questions answered and for the Signet Art team to get the basic information we need in order to understand your appraisal need.  We will establish your intended use for the appraisal, the person/s to whom the appraisal will be written, location/s of the items to be appraised, etc.  While on the phone, we will establish whether we will need to draw up a contract or not. Our larger projects are often done under contract.  However, we do have some clients who prefer working on a verbal/ handshake agreement. If the project is small enough and both parties are amenable, we work that way.  We have the luxury of choosing the highest quality clients and assume we are being chosen for our excellent reputation. So, contract or not, we will have an understanding with our clients by the end of this phone conversation. Onsite time is scheduled at a mutually convenient time, taking into account your best estimate of the number of items to be appraised.   The inspection time will start with a brief walk-through in order to familiarize me with the location of items and give you a chance to ask any questions that have come to mind.   Once the walk-through is complete, I will start my onsite inspection.  You are free to go about your tasks.  I do request that if you do have a file containing receipt and other salient information about the items, please have that available for inspection.   I bring an iPad and can take quick images of any information that would be helpful during the valuation process.  When finished with the inspection, I will let you know how many items I documented and will give you an estimate for completing the appraisal.   I will also be able to let you know when to expect delivery of the report.   Normal turn-around time is 2-3 weeks.  But that can vary based on the number of appraisals on my desk and other factors.  

Wrapping up…

In choosing an appraiser, you want to have confidence that the person is fully capable to appraise the type of pieces you need appraised.  You also want to be comfortable working with the person.   So, ask yourself, did I get my questions adequately answered? If I choose this person to work with, am I confident of their skills and professionalism?  Visit the appraiser’s website to familiarize yourself with their business, the way they present themselves.  Ultimately, if you ask the right questions, you will find the person best suited to you and your appraisal need.