- ATS designation – Auction Technology Specialist for auctioneers
- AARE designation – Accredited Auctioneer Real Estate
- CES designation – Certified Estate Specialist
- BAS designation – Benefit Auctioneer Specialist
- GPPA and MPPA designations – Graduate and Master Personal Property Appraiser
- CAI – Certified Auctioneers Institute designation
One of the hats that many auctioneers wear is that of an appraiser. Appraisals can be court-ordered or requested by sellers wanting to know what their assets are worth. Many auctioneers, masters of the secondary market, serve as experts on the value of property.
We caught up with our friend Jack Christy, Sr., CAI, BAS, CES, MPPA, of Christys of Indiana, and asked him why appraisals were necessary. “Everything needs to be reappraised,” said Christy. “Antiques are down 70% in our market.”
Proper appraisals aren’t easy, and not all appraisals are the same. An appraiser must know before beginning work on a project if the appraisal is for replacement value, fair market value or liquidation value. These values are usually very different and serve different purposes. Because of the differences in appraisal types and qualities, it’s important to know that the person doing the appraisal is going to do it correctly and in a standards-compliant way.
Dr. Harlan Rimmerman, Director of Education for the NAA, says that new IRS regulations will require that the IRS look for credentials of appraisers. “They now want the appraiser to have credentials as well as experience. The credentials must come from an approved provider such as NAA. The GPPA course teachers those new IRS regs,” said Rimmerman.
The GPPA and MPPA designations from the National Auctioneers Association lend credibility to an auctioneer’s appraisals. The NAA’s GPPA program is a member of the Appraisal Foundation, the Congressionally-authorized entity in charge of regulating certified appraisers. The Appraisal Foundation publishes a set of standards known as the Uniform Standards of Professional Appraisal Practice (USPAP). Here’s the course description for GPPA from the NAA website.
The GPPA class examines the responsibilities of the appraiser and discusses the factors affecting the value of appraised items. Experts and classmates will discuss industry trends, the function of the appraiser, identification, valuation and methodology of appraisals, as well as the responsibility the appraiser has to the client.
The GPPA course also provides basic information about appraisal work including teaching you how to search for comps, what to look for as far as condition, identifying marks and other conditions.
You will learn about personal property, antiques, machinery, equipment, farm, and construction equipment. The instructors will provide examples as well as materials to help you start your appraisal business. You will also learn about the GPPA appraisal template and practice preparing an appraisal report using the template.
You will be able to customize a standardized appraisal format, market your appraisal services, enhance your research skills and improve your appraisals. An examination is given at the end of this course.
On the final day of GPPA you will participate in the Appraiser as Expert Witness program.
Christy, Education Institute Trustee and Chairperson of the GPPA Committee, said that the NAA is currently working with the International Society of Appraisers on an alliance that will work to augment the offerings and designations of each with those of the other. In addition to the standard five-day GPPA course, the NAA currently offers optional specialization courses in the following categories.
- Construction and agricultural equipment
- Manufacturing and process equipment
- Small business valuation
- Antiques and residential contents
Each of these optional courses is a two day course, offering 14 credit hours towards the 24 hours of continuing education mandated by the GPPA designation every three years. The alliance with the ISA will allow other specialization options in addition to those currently offered by NAA.
“It adds value to the invoice I send,” said Travis Hamele of Hamele Auctions. It also ads legitimacy with the courts. Judges who notice the designation are far more likely to accept the word of the auctioneer as expert testimony.
Once an auctioneer has years of experience conducting appraisals as GPPA, he or she may apply to receive MPPA. This is a peer-reviewed application and confirmation process that doesn’t require additional coursework outside of the yearly continuing education requirements for GPPA and all NAA designations. Once the committee reviews the application and judges that the auctioneer has demonstrated experience and professionalism in conducting appraisals, he or she may be designated Master Personal Property Appraiser or MPPA. If you’d like to learn more about GPPA or MPPA, visit the course webpage.