There are many different reasons why an appraisal is a good idea and many reasons when an appraisal may be required.

An insurance appraisal is more than just a number. A well-written insurance appraisal report will accurately identify the items. The appraisal report should be a well-researched document that justifies the cost to replace the item in question with a suitable replacement of like age, quality, authorship and utility. It also documents the existence of the item at a specific place and time. Insurance companies don’t like to rely on the word of the insured, think about the proverbial ‘basement full of Van Gogh paintings” that mysteriously burned up in the fire with no proof to show that they existed. An appraisal would have gone a long way to make sure that client got paid. An insurance appraisal is usually written to determine the replacement cost of the included items.
- Definition of Replacement Cost: Replacement cost is primarily an insurance term meaning the cost to replace an item with another having similar qualities within a reasonable amount of time in the relevant marketplace. This is done through production, reproduction, or purchase.

An estate appraisal as far as an appraiser is concerned is for estate administration when the estate is required to file the appraisal with the IRS or the State Government. As of 2020, this is required of estates exceeding a combined value of $2.193 million (for the State of Washington) and $11.58 million (for the IRS). An estate appraisal is written to estimate the fair market value of the included items.
- Definition of Fair Market Value for Estate Appraisals: “The Fair Market Value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. The fair market value of a particular item of property includible in the decedent's gross estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be determined by the sale price of the item in a market other than that in which such item is most commonly sold to the public, taking into account the location of the item wherever appropriate.” (Source: ISA Core Course in Appraisal Studies, 2018 p.GL-5)

They are a few different situations that may call for an equitable distribution appraisal. Estates of a size that fall below the State and Federal estate tax limitations can use equitable distribution appraisals to divide the tangible personal property among the heirs as can divorce settlements and business dissolution. An equitable distribution appraisal is usually written to determine the market value of the included items.
- Definition of Market value is the most probable amount of money a buyer would pay and a seller would receive for an item within an identified market. It is similar to fair market value except that the lack of compulsion to buy or sell is removed, i.e. the sale must be consummated, and the assumption of a sale within a specified time frame is added. (Source: ISA Core Course in Appraisal Studies, 2018 p.GL-7)

When making a donation of tangible personal property to a non-profit organization the IRS will require appraisal if the fair market value of the item is over $5,000.00. Every donation situation is different. The type, condition, quantity and fair market value of the object needs to be carefully considered prior to making the donation to ensure that the desired tax credit is honored by the IRS and not called into question. A non-cash charitable donation appraisal is usually written to determine the Fair Market Value of the included items.
- Definition of Fair Market Value for Charitable Donations: Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. If you put a restriction on the use of property you donate, the FMV must reflect that restriction. (Source: Publication 561 (4/2007), Determining the Value of Donated Property)

The process of getting a divorce or separation can be extremely stressful and knowing that you are receiving an unbiased third party valuation of your home contents and personal property collection can often relieve some of that stress Your attorney may require an accurate inventory and evaluation of the contents of the home to assist in the equitable distribution of the contents. Our trained appraisers can create an efficient and painless inventory of your home to help ensure your personal property is accurately accounted for.

Clients with property that has suffered damage as a result of disasters such as hurricanes, fire, floods, car accidents and similar event or clients that have suffered a theft loss if someone steals their property. May be able to claim an Income Tax deduction for that loss. You can learn more about this on the IRS website with Publication 584-B. A casualty loss appraisal is usually written to determine the fair market value of the included items.

Trust agreements are legal documents created to protect property placed in a a trust. They are created to help manage property during the lifetime of the beneficiary and can be used as estate planning tools. An appraisal can be used to create a trust inventory, determine a stepped-up basis, for equitable distribution or even to value the items for insurance purposes while they are covered by the trust. An appraisal for use as part of a trust can have a variety of valuations. Our appraisers can help you determine what may be needed for your situation.

Many of our clients either inherit an item or have a small collection of items they have collected over the years and have always been curious about the history and/or value of the items. The internet has allowed for easy access to almost too much information. Navigating through the jungle that is Google can raise more questions than answers. A visit from a qualified appraiser can answer these questions and help you better understand what it is you have, how much it’s worth and provide you with enough information to know what to do with it.

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