What is an Appraisal?
It is a comprehensive report giving an opinion of value at a given point in time of any sort of property, e.g., a work of art, an antique porcelain bowl, a diamond, an automobile or a building. There are many functions or “intended uses” for appraisals, such as insurance, taxation, distribution, and liquidation. There are also many types of value depending on the intended use of the appraisal. It is the appraiser’s responsibility to select the type of value most relevant and appropriate to the appraisal’s intended use.
The Appraisal Purpose
We prepare personal property appraisals that are compliant with The Uniform Standards of Professional Appraisal Practice (USPAP). The need for an appraisal could be for any of the following reasons:
- Insurance Coverage
- Damage/Loss Claims
- Charitable Donations
- Equitable Division of Assets
- Estate Planning
- Estate Settlement/Tax Returns
- Purchase or Sale of Property
The appraiser determines what type of value is appropriate for any of these intended purposes of the appraisal, e.g. Fair Market Value, Replacement Value, etc. The appraiser also determines the most appropriate approach to value, which for personal property is most often based on comparing other properties sold in the relevant market.
The Appraisal Process
After the initial meeting between appraiser and client, the appraiser’s valuation process flows something like this:
- An inspection of the items is made, photos taken and details recorded.
- The most relevant markets are determined, and historical sales data are gathered on comparable items.
- The data is analyzed through an objective methodology to derive an opinion of value of the items.
- The formal report is prepared and presented to the client.
The Appraisal Fees
Our fees are charged on a flat hourly rate plus reimbursable expenses. Compensation is never contingent upon the value reported. We are not estate sale managers, dealers or liquidators, and we do not buy any items that we appraise. Nor do we make verbal or online appraisals.
E.W. Nash & Son offers inventory services for household contents, with detailed item description, measurements, materials used, date, condition and digital photographs. Such inventories can be important in making insurance claims and in estate planning, and can be used as the basis for an actual appraisal at a later date.