Appraisal Process 

 

Determination of Purpose
The appraisal process begins with determining the purpose of the appraisal. The appraisal can be prepared for the purpose of insuring one's personal property against theft or damage, for selling the property at auction or to a dealer, for distributing the property as part of an estate or divorce settlement, or for donating the property to a non-profit organization.

Type of Value  
Once the purpose of the appraisal is established, it is possible to determine the type of value to be researched. There are two types of value: Replacement Value and Fair Market Value.

Replacement Value is defined as "the price in terms of cash or other precisely revealed terms that would be required to replace a property with another of similar age, origin, appearance, and condition within a reasonable length of time in an appropriate and relevant market."

Fair Market Value is defined as "the price at which the property would change hands between a willing buyer and a willing seller, neither under any compulsion to buy or sell, and both having reasonable knowledge of relevant facts."

Preparation of the Inventory
The property to be appraised must be examined directly by the appraiser, who prepares an inventory of the items which will be included in the appraisal document. The preparation of the inventory involves identifying the objects, documenting their physical characteristics, measuring their dimensions, and photographing the property to create a visual record.

Research of Value
The research of value is conducted by consulting with dealers who specialize in objects similar to those being appraised, looking at publicly available auction records, and using reliable published price guides.

Should you require a personal property appraisal for single or multiple items we can provide or refer you to a qualified professional appraiser. Be aware that not all appraisers are qualified to appraise all items. It is important to seek out an individual who meets your specific needs.
 
The Appraisal Report
There are appraisals and there are value estimations. A true appraisal should have the following included in a written report document:

• Description & photos of the item(s)
• Determination of values for the item(s)
• Research, support documentation, and citation of resources used to determine value
• A credential page stating qualifications and contact information
• Estimations of value are usually verbal and are not written. They are based on the knowledge, experience and best judgment of the appraiser and do not carry the weight of a fully researched and documented appraisal.

Value estimations and written appraisals are normally charged by the hour, or by a specified amount agreed upon by the client and appraiser – always discuss fees before service begins.
A fee should never be charged based upon values determined after completion of an appraisal