Appraisal Services Associates

Understanding the appraisal Process

Fair Market Value

Fair market value is defined as the price at which properties would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.  Five types of appraisals use fair market value: donation, tax and estates, matrimonial equitable distribution and bankruptcy.

Retail Replacement Value

The value conclusions in insurance and damage loss appraisals are reached by determining the retail replacement value of the subject property. Full replacement value is the highest price that would be required to replace the property with another of similar quality, origin, appearance, provenance and condition with in a reasonable amount of time in the appropriate and relevant market.

Qualified Appraiser

According to the IRS, a qualified appraiser is someone who holds himself out to the public as an appraiser and performs appraisals on a regular basis. A qualified appraiser will demonstrate his knowledge of your properties and their market and will have the experience necessary to create a professional appraisal document.

There are several stages to writing an appraisal.  First, an inspection of the properties occurs.  Next, relevant markets and historical data are researched.  This includes finding comparable properties that help the appraiser determine the value of the items.  The finished report is then written and sent to you.  Appraisers specialize in specific fields, such as fine art and antiques, gems and jewelry, real estate, and business valuation. 

As appraisals reflect the value of an object as of the effective date of the appraisal, existing appraisals should be updated every five years so that their valuations stay current with changes in the market.  Appraisals are required for insurance, donations, estate planning and taxation, and often will be requested for various types of litigation, such as divorce and damage loss.

Appraisal Services Associates. 232 Madison Avenue. New York, NY 10016. Tel: 212-679-3400. Fax: 212-683-1076.  www.appraisalserv.com