The Electronic Transmission of Appraisal Reports

Love 'em, or hate 'em, computers are here to stay. Today, instead of merely creating appraisal reports, they are also used to transmit them by email. Called PDF appraisals, these files ending with the suffix .pdf created by Adobe Acrobat™ are the electronic counterparts to published appraisals. Some old-school appraisers resist anything new especially if it involves being computer savvy. For the computer-generation, however, it is a natural advancement of the report transmission process.

Gail Levine, Executive Director of the National Association of Jewelry Appraisers (NAJA), sees PDF appraisals as an excellent approach to sending valuation reports to clients. She encourages all professional appraisers to update themselves with the advantages of current technology. Being an advocate of ecology, she wants appraisers to go green by embracing PDF appraisals and saving paper.

        Commonplace to Internet Surfers

The email transmission of PDF documents is common place in other professions. Electronic files are routinely used by accountants and attorneys as well as the IRS to quickly and conveniently deliver and receive documents. You will encounter them in software help files, manuals, and many other computer applications. They save companies thousands of dollars in printing costs. You most likely have clicked on a link within a website or search engine to find it opening Acrobat because the web page is actually a PDF file. Files saved as PDFs are easily attached to emails, a widespread practice in business communications.

Appraisers now have discovered PDFs as a means to transmit appraisals. Is it an acceptable practice? "All Opposed Say Aye."

Most appraisers still print and sign their appraisals. Although these documents can be altered or even faked, it is not an easy task. "I am concerned that PDF appraisals have electronic signatures," states Charles Ellias, GG, ISA "At least a hard-copy appraisal has a real signature, perhaps embossed with a seal, whereas an electronic version does not."

Although he acknowledges that any appraisal can be forged or changed, electronic ones are easiest to change. A hard-copy appraisal can be altered but not without some effort. "If someone has a mastery of computers, then they can alter the report and instantly pass it to the end user."

Most appraisers interviewed, whether opposed to or in favor of PDF-appraisals, expressed apprehension of unauthorized alterations by unscrupulous clients. Is it really easy to do? When I asked Michael Cowing, GG, Senior member of NAJA, if a read-only file was secure, he informed me that, "It is an illusion that a read-only PDF file is difficult to alter. In fact it is as easy to alter as a Word file." Michael recently acquired some desktop software for posting articles on his website, www.acagemlab.com, that enable importing, editing and exporting PDF documents.

Acrobat has the option of securing a file. I decided to test this security by sending Michael a simple PDF file using Acrobat security options equivalent to a read-only file. I emailed it to him and within minutes he returned it counterfeited using only his desktop publishing soft ware. Does this ease-of-alteration dissuade him from using PDF-appraisals? "Of course not," he concluded. "If someone wants to alter your report they will do it, whether it is electronic or published. Just be sure to archive a copy of the original so you can expose any alteration in either case."

        Back It Up

Whether you prefer the hard-copy or the PDF-appraisal approach, keeping backup copies of the report is a must. Most appraisers who have electronic backup systems use a hard drive. Alan Neckemias, GG, ISA, cautions appraisers to use a non-rewritable CD for backups. This provides a time-dated record for comparison. He adds, "Remember to back-up the original appraisal, the PDF-appraisal file, and the email onto the CD." This makes sense since the evidence codes of all states and the federal evidence code, allow business records as evidence. They do not demand that a business record be in printed form only, therefore electronic records are also acceptable.

        Take Advantage

What advantages do PDFs have over printed reports? Instead of mailing a report that takes days to reach its designation, PDF-appraisals are transmitted in a matter of seconds. If the client wants a hard-copy, they merely print one, thus saving the appraiser the cost of paper in addition to the postage required.

The PDF will also render the appraisal document in color including photos and plots that might be embedded into the document. Martin Fuller, GG, Certified Senior Member of NAJA, Master Gemologist with ASA, has long been an advocate of using cutting edge electronics for appraisals. For example, he uses digital photo graphs instead of diamond plots in appraisal reports. He sees PDF-appraisals as advantageous. When asked to comment on the wide spread concern about PDF-appraisals being easily altered by the customer, he responded, "I would not be so concerned with someone altering the report as much as someone who is unauthorized receiving it by accident or illegally intercepting the email."

Attorneys use all encompassing disclaimers when they transmit documents by facsimile or email in case they transmit a confidential document to someone else by accident. Maybe this same legal parlance they use should be adopted by appraisers when sending PDF-appraisals.

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