Valuation Services

What is an Appraisal?

• An appraisal is the act or process of determining value, estimating cost, or calculating the present worth of forecasted earnings.

• An appraisal report is a written documentation of the same.

• An opinion of value which can be expressed as a specific amount, a range of numbers, or a relationship to a previous value opinion or set amount.

• Appraisals are opinions based on an informed judgment which are supported by facts, analysis and processing of relevant factors

Choosing an Appraiser

An appraiser is a professional who specializes in providing Opinions of Value (appraisals) and Valuation Services in an independent, impartial and objective manner. Eventually, most of us need to know the value of an item of personal property, either to preserve it as an asset or use it to create additional wealth while managing the risks of ownership.

Qualified appraisers give you the objective information you need to make financial decisions in your best interests. Professional appraisers have taken courses and have been trained in appraisal theory and methodology as well as specific product and specialty knowledge.

IRS Qualified Appraiser Requirements:
• Appraisal Designation from a Recognized Professional Appraiser Organization or has otherwise met minimum education and experience

• Regularly Performs Appraisals for Pay

• Has not been prohibited from practicing before the IRS at anytime over the three year period ending on the appraisal date

Tangible personal property (TPP) is anything other than real property or intangible personal property, which includes items such as: all goods, property other than real estate, and other articles of value that the owner can physically possess and has intrinsic value. This includes such things as vehicles, antiques, silver, artwork, collectibles, furniture, tools, machinery and equipment, removable fixtures, household appliances, signs, supplies, leased equipment and any other equipment used in a business or to earn income.

Estate Purposes

A Personal Property Appraisal for Estate Purposes
can be used for:

Determining Value: An appraisal can help the owner understand the value of their estate and how to distribute it.

Meeting Legal Requirements: An appraisal can help meet the legal requirements for probate and estate settlements.

Ensuring Fair Distribution: An appraisal can help ensure that heirs receive a fair and equitable distribution of the estate. Beneficiaries will better understand how to care for the assets and make decisions about insurance, maintenance, and storage, etc.

Calculating Estate Taxes: An appraisal is used when calculating estate taxes and filing an IRS Form 706.

Confirming or Dispute Value: An appraisal can help confirm or dispute someone else's assessment of value.

Dissolution of Marriage

Appraisals for divorce purposes are used to determine the value of a couple's assets and help divide them fairly and equitably. They can be used in negotiations, mediation, or court, and can impact how they are divided, who keeps certain property, and how much one party pays the other for buyouts.

Insurance Purposes

Many insurance companies require a formal appraisal before adding certain items to a policy.

An object appraisal for insurance coverage is a detailed analysis of an item's value that helps determine the amount of insurance needed to cover it, known as Replacement Cost.

Appraisals are often required for high-value items like art, jewelry, antiques, and collectibles.

Insurance companies have strict guidelines on what they cover and the value threshold per item.

Accurate Valuation - An appraiser can consider the item's age, condition, and features to determine how much it would cost to replace.

Benchmark for Value - An appraisal can establish a benchmark for the item's value, which insurance companies can reference in the future.

Proof of Condition - An appraisal can serve as proof of the item's condition and value, which can help with claims and settlements.

Expertise - Appraisers have specialized knowledge in different fields, which can help ensure that assets are valued accurately.

Coverage Exclusions - General coverage may not include damage from a third party, or coverage outside of the policy holder's private residence.

To get an accurate appraisal, it's important to provide as much information as possible, including:

  • The item's make, model, and serial number

  • Historical data on the item's value and past sale prices

  • Information about the item's origin and any past damages or repairs