Looking for an appraisal? There are a few different types of appraisals depending on the situation and the reason for the appraisal. There are also a number of factors which can affect the value of each individual item being appraised.
Types Of Valuations
Fair Market Value – Also known as Assessed value, Fair Market Value is an appraisal based on a transaction between willing parties —buyer and seller— without compulsion and with all parties knowing all the relevant facts.
Replacement Value – A common valuation used for insurance purposes, Replacement Value is the cost of replacing an item due to loss, theft or destruction. Depending on the situation, Replacement Value could be refer to current (new) replacement value or the cost of replacing the item with one in like condition.
Forced Sale Value – This is a below market value appraisal where typically the seller is forced to sell property at a greatly reduced price to meet their personal obligations. Forced Sale Values are often arm length between two known or associated parties.
Liquidation Value - When there is little other choice and you either need to clear out some space, meet some financial obligations, convert old inventory to cash or accommodate some other business or personal circumstance within an excellerated time-frame, Liquidation Values can give you an ideal of what the property in question is really worth.
Factors Affecting Values
There are several factors which can affect the value, either way. Amongst these, Condition, Desirability and Scarcity probably most affect an items value. Here’s a list of some of the more important factors that affect the valuation of an item.
Condition is everything. The more pristine the condition, the greater the value, period.
Is the item something lots of people want? Is there a collectors or organized club for the type of item being appraised? The more desireable, obviously people are willing to pay more.
If they can find one, that is. The fewer of the item in existence, the scarcer and more rare they are.
Is anyone looking for the item? How many? The bigger the demand, the easier it is to find a willing buyer.
The price initially paid for the item and/or the current cost of a like replacement.
For newer items, that are still in production, age can be a detrimental factor and affected by the cost of a new one. For older items, age can be a beneficial to an items value, such as in vintage and antiques.
How large is the potential customer base for the the item? Is anyone buying?
Authenticity of Item
Is it real, a reproduction or a cheap knock off. Even experts can be fooled —almost!
Is the item a name brand or a recognized maker? There are millions of violins in the World, but only a few Stradivarius.
Documentation, paper trail, proof of story are all parts of Provenance which is essentially a means of proving the authenticity and history of an item. Antiques, collectibles and historical items are often more valuable when supplied with a Provenance.
Enlisting the services of a certified and accredited personal property appraiser can help to provide a realistic, tangible value for your property or estate.