National Appraisal Guidelines
**If you are a Vehicle Appraiser please see below:
**If you are a Vehicle Owner who is considering having an Appraisal done please see below:
Our National Appraisal Program has been developed to provide uniformity in appraisal information across Canada. The form samples provided are only suggestions. The appraisal content outlined below, to be included in an appraisal, is mandatory.
NAACC Appraisal Standards:
As an automotive hobby group representing thousands of antique, classic and special interest automobile owners, restorers and dealers, we strive to provide professional and credible appraisal guidelines. These guidelines should provide for uniform consistent appraisals that can be trusted by any insurer, buyer or seller in any Canadian Province or any State in the USA. Hopefully appraisals that conform to the NAACC guidelines will give confidence to any insurer, buyer or seller.
There has been a growing need in the last decade to provide assurances of value to both vehicle owner and the insurer. Please check your appraisals against our guideline requirements and if they do not conform ask your appraiser to re-write them to conform or at the very least have the appraiser include any missing data. By doing this your evaluation will not be missing important components that may affect a future claim.
Often insurers need assistance with values of vehicles that are unique i.e. modified or limited production because they do not have a historic database from which to take information from.
Owners need to know there is an understanding between themselves and their insurers as to what their vehicles ‘real value’ is in the case of a loss or a claim.
Disclaimer and endorsements:
The National will/does not verify any statements made and therefore assumes no liability as to the accuracy of these statements or to the accuracy of any appraisal produced by a listed appraiser. The National will remove an appraiser’s name from the list upon a second written complaint from his or her direct client or evidence given to the National that the format/standards of appraisals are not being followed after discussion with the appraiser.
Discretion of the current National Appraisal Program Chairperson will prevail.
- The National shall not endorse any appraiser or testify to the credit or discredit of any appraiser or their appraisals.
- The National’s listing of an appraiser shall not qualify the appraiser for liability insurance. Qualifications will be determined by the insurer. Presently Reliance Insurance Group of Burnaby, British Columbia underwritten by Lloyds of London offers Appraisers Insurance if they qualify and they if are listed by the NAACC. Contact Reliance Insurance directly and speak to their Commercial Account manager Christine Coulter or her designate. See the ‘Insurance Heading’ on the NAACC Home page for contact details.
National Appraisal Guidelines For Appraisers:
Appraisers who are listed by the NAACC must act in a professional way. They must provide unbiased, fair market evaluations based on current market trends. To remain listed, the appraiser must exhibit, both publicly and privately, a standard of conduct that is acceptable to the NAACC Board of Directors. The NAACC code of ethics will bind them.
If it is determined that the appraiser has not acted in a professional way the appraiser’s NAACC listing will be terminated. When an appraiser is asked to render an evaluation of a vehicle, the appraiser must give the evaluation based on a physical observation unless the vehicle is no longer in existence. (i.e. missing)
An appraiser must use current market guidelines provided by auction results and current offerings as well as recognized valuation price guides. Every element of the vehicle’s history, pedigree and any factor that will affect the overall valuation must be taken into account and presented in the evaluation. If detrimental information is discovered while doing an evaluation, it must also be noted in the evaluation.
The NAACC and the appraiser recognize that any vehicle appraisal is a professional service for which the appraiser may charge a fee. This fee will be determined solely by the appraiser. Fees must not be determined based on the overall valuation of the vehicle. A fee will be determined based on the time and effort spent in providing the client with the finished document. Out of pocket expenses such as travel time, personal vehicle usage or related costs will also be taken into consideration when preparing and issuing an invoice.
Each person who is listed as an Appraiser by the NAACC must conform to following:
- Stay informed of current market trends using the NADA, Old Cars Report Price Guide, Internet sales, Auction results, International sales and any other form of business transaction that may be relevant to the appraisal.
- It is strongly recommended that an appraiser, have familiarity with the mechanical aspects, body, interior and modifications that are common to the hobby. It is also highly recommended that they have been a specialty vehicle owner and have been actively involved in some aspect of the vehicle restoration. A time-frame of five years is recommended as a minimum.
- It is strongly recommended that an appraiser be competent in digital format for the sake of legibility and professionalism. They should be capable of producing printed results and the storage/filing capabilities of digital text and pictures.
- It is strongly recommended that an appraiser be technically knowledgeable with research methods with emphasis on the most current methods (presently being Internet searches).
- The appraiser will disclose all positive and negative pertinent facts regarding each vehicle appraised.
- The appraiser should physically inspect each vehicle whenever possible. If the vehicle is not available for inspection this fact must dually noted in the appraisal.
The appraiser must provide the following information in the evaluation.
a) Physically inspect and record the vehicle VIN numbers and vehicle registration numbers where applicable.
b) Reference to the vehicle VIN numbers must be identified in the appraiser’s report as having originated from ownership or registration documents as well as from the vehicle itself. This will ensure that the vehicle is genuine. (compare vehicle VIN’s with registration papers)
c) The appraiser doing the evaluation must provide a minimum of 12 photographs. Pictures of all 4 corners, dash, interior front, interior back, engine compartment and both sides and trunk area will be a minimum. Additionally, undercarriage and driveline pictures are strongly recommended. The appraiser will date and sign or initial each photograph.
These signed photos will be part of the submitted evaluation. They will be submitted on photo paper if taken by digital camera or submitted as scans from normal film. Pictures, if not taken by or are verifiable by the appraiser, should be certified by a Notary, Lawyer, professional person or a car club executive member as being of the vehicle appraised. (Example: I, [Printed name] certify this picture to be that of a 1963 Chevrolet Corvette, VIN # X9XX99X999999).
d) A physical description sheet will also be used (a sample is provided). It is suggested that the appraiser uses the clarification rating guide of the Old Cars Report Price Guide. The NAACC realizes that some appraisers have developed their own rating system based on the Old Cars Report Price Guide format.
e) Reference sources should also be provided (i.e. Hagerty Valuations, NADA, Old Cars Report Price Guide, auctions etc.) Comparable vehicles for sale or sold ‘MUST’ be included in full detail.
Special note on Liability:
As an appraisal is considered a “professional opinion”, the definition of a professional, as per Black’s Law dictionary, would likely be considered applicable in a court of law, with this in mind comes a liability.
There is an obligation on the appraiser’s part to:
1) Complete the appraisal as per contract.
2) Perform due diligence within the appraisal to ensure accuracy and completeness that will not cause a detrimental effect to the client.
3) Identify the Kms / Miles of the vehicle using a verifiable source
4) Clearly state any special conditions as to the information used in the evaluation. If the information used has been supplied by the client and not verified for accuracy, this must be clearly stated. This is very important for the appraiser, as there is an obligation to verify their professional opinions.
5) Be responsible for the actions of anyone who is deemed as an employee or assistant.
We realize that many Appraisers will have developed their own reporting formats. The NAACC requires that all appraisals contain a minimum level of information in these formats that include the following:
- Dated document
- (Police or Insurance Claim number if applicable)
- Name, Address and Phone # of Owner
- Vehicle Description (Year, Model, Make & Color)
- VIN #
- Registration #
- Licence #
- Mileage stated in Km or Miles
The body of the work should include the following:
- Overview of vehicle condition using a condition chart or paragraph format
- If modified –include upgrades, changes & modifications in detail
- A minimum of 12 pictures of the actual vehicle—pictures should to be verified by appraisers’ signature or initials
- A minimum of three comparable current value offerings
- Using a profession valuation company such as Hagerty Valuation, NADA or Old Cars Report Price Guide to establish true market value. We suggest using two sources.
The NAACC does not administer or police, we simply guide. Please take particular note that no person representing NAACC will consent to represent any party in a court of law. Should anyone request assistance, the NAACC through its network of contacts and provincial Directors may be able to provide information.