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How To Request The Right Appraisal

 

How To Request The Right Appraisal

 

 

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There are a number of different reasons why you might need to know how much an item of personal property is worth. Knowing an item's worth can stem simply from curiosity or from financial considerations, such as insurance coverage, preparation for a sale, division of property in a divorce, estate planning or the liquidation of an estate, filing of estate tax returns, or charitable donations for tax purposes. In most of these instances, the worth of an item is required to be supplied by a professional appraisal report.

 

"Science is the belief in the ignorance of experts.”

- Richard Feynman

 

 


"Things aren't what they used to be and probably never were."

- Will Rogers

 

As defined by the American Society of Appraisers (ASA), appraising is "the art and science of estimating value, at any given time, of any sort of property".  An appraisal is thus an estimate of how much an object is worth under certain conditions. The value of an object, however, depends on the situation at hand and any object can have several prices. For example, the worth of an object is not the same as the actual price an object might bring when sold.

When seeking an appraisal, the appraiser will most likely ask you "Why?" because different methods of establishing value are needed to meet the requirements set forth by the Internal Revenue Service (IRS) and the courts.

While there are many methods of establishing value, the following methods are the most commonly used for personal property appraisals: 

INSURANCE VALUE: Most standard home owner policies limit coverage for certain types of losses, such as jewelry, silverware and furs, and computer equipment. It's necessary to have these items appraised and insured separately, to be certain you are covered in the event of a loss.  You can purchase a policy called a 'rider' or a 'floater' in addition to your basic policy to provide the necessary additional coverage.

REPLACEMENT VALUE: The 'replacement value amount' provides reimbursement for the cost of replacing objects, or your insurance company may attempt to locate them for you should they be antiques.

ACTUAL CASH VALUE: Your insurance company may reimburse you a depreciated value on the possession, the 'actual cash value amount', usually equivalent to the amount you would get were you to sell the object.

LIQUIDATION VALUE: Especially for estate sales and auctions, the 'liquidation value amount' is the method used when possessions must be sold quickly at whatever the market will bear.

FAIR MARKET VALUE: The 'fair market value amount" is the method most often used by the IRS as the standard for estate valuation and for donated property.

 

 

"Investigation best way to find answer."  

- Charlie Chan, Dead Men Tell Tales

 

Unlike freckles, value exists because other factors outside it create a container, a context, for it.  Each context is the result of the inclusion and consideration of different facts, that are used to establish value within that context. Value is a verb, not a noun; it is not a cause but a result. Value can't exist in a vacuum.  

Many factors besides the item itself will affect the value of that item. Value will vary depending on what facts are taken into consideration, and the same item will have a different value under different conditions, situations and considerations, all of which may exist simultaneously.

For example, the value determined for an item declared as a tax deduction when donated to a non-profit organization for resale, may be different than the amount that item brings in to that organization when they sell it. The donation value is not the same amount as the sale price. 

There are a number of different reasons why you might need to know how much an item of personal property is worth. I hope the information in this article is helpful to you in requesting the type of appraisal you need to meet the requirements of your situation. 

 
 

See into the Invisible.

Best Wishes,

 

"Mind like parachute - only function when open."  

Charlie Chan at the Circus

 

 
 

 

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All Content is © Debra Spencer, Suit Yourself™ International. Technical Library FAQ Index ISSN 2474-820X. All Rights Reserved. Please do not reproduce in part or in whole without express written consent. Thank you.

 

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All Content is ©2019 Debra Spencer, Appanage™at www.suityourself.international Suit Yourself ™ International, 120 Pendleton Point, Islesboro Island, Maine, 04848, USA 44n31 68w91 Technical Library FAQ Index ISSN 2474-820X. All Rights Reserved. Please do not reproduce in part or in whole without express written consent. Thank you.

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All Content is ©2019 Debra Spencer, Appanage™at www.suityourself.international Suit Yourself ™ International, 120 Pendleton Point, Islesboro Island, Maine, 04848, USA 44n31 68w91 Technical Library FAQ Index ISSN 2474-820X. All Rights Reserved. Please do not reproduce in part or in whole without express written consent. Thank you.
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