Journal
Why fine art appraisers charge hourly, not a percentage
A credible appraisal fee cannot depend on the number written in the report.
Professional fine art appraisers bill by the hour, or on a flat fee agreed in advance. They do not take a percentage of the value they assign.
Why the rule exists
USPAP and the Appraisers Association of America treat percentage and contingency fees as unacceptable. For charitable donations, Treasury Regulation 1.170A-17 says the fee cannot be based on the appraised value, including a fee that depends on how much the IRS later allows.
What the hours are for
The fee pays for scoping, inspection or a directed staff visit, research in the correct market, writing, images, sources, and a signed certification. It does not pay for a guaranteed figure.
Updating a USPAP report already on file is usually less time than a first inventory. The fee is not a function of value.