Antiques dealers have exposure from two sources: attorneys and the IRS.
It’s unlikely that a dealer will be sued over an appraisal unless the amount involved is substantial; there has to be enough money involved to pay a lawyer and have something left over. Risk for a dealer is directly proportional to the value of the item.
It’s well established that one of the root causes of the recent U.S. banking crisis was over-inflated and poorly researched property and housing appraisals. Poor appraisals that resulted in a financial crisis are not new: faulty appraisals were also at the root of the Savings and Loan failures of the 1980s and 1990s. In both crises, loans were made on the basis of appraised value. When a property’s appraised value was overstated and the loan went bad, there was not enough actual value in the property to collateralize the loan.
Poorly executed personal property appraisals can result in negative fallout as well. Read More
Originally posted 2013-11-14 10:37:00.