Insurance: Homeowner’s policies only cover a certain amount of household
contents, so if clients suspect they have items of value, it is important to
establish that value to be sure they have adequate coverage.  In addition, when a loss occurs there is often dispute between the owner and the insurance company over the value of the damaged or stolen item.  If an appraisal is conducted by an accredited, unbiased appraiser before a loss and is on file with the insurance company, this reduces the likelihood of a litigious situation.  The value estimated in this case would be Replacement Value.

 

Estate Settlement: When a loved one passes, it is necessary to value the
property owned and transferred in a will so that the proper estate taxes can be paid to the IRS.  The IRS rules state that the value estimated in an estate
appraisal be Fair Market Value.

 

Divorce: In a divorce proceeding where the two parties cannot amicably divide the common holdings, an appraiser is called in either by one or both of the parties or ordered by the judge overseeing the proceedings.  The laws vary from state to state, but, generally, Fair Market Value is used in an appraisal prepared for divorce purposes. 

 

Property Division: Property division usually coincides with estate settlement or division of a domestic partnership that does not qualify as a divorce.  This
appraisal is usually not for legal purposes, but simply to make sure the
property is divided equitably among all parties involved.  Usually, Fair Market
Value is used in these cases, but occasionally the parties request
Replacement Value.  If the situation is not governed by law, the parties can
choose which value they wish to be estimated.

 

Sales: If a client is interested in selling something believed to be of value, it is
often beneficial to have an appraisal completed before trying to sell the item to
assure the piece is neither over- nor under-valued in a sale.  Fair Market Value is the type of value estimated in an appraisal for sales.

 

Charitable Donation: When an item is donated to a museum or charity auction, for example, and the client wants to write off the donation as a tax deduction, the IRS requires an appraisal be filed with the tax return.  As with estate taxes, the IRS requires the value estimated to be Fair Market Value.

Inventory: Our appraisers will meet with you on-site, for your convenience, to view all of the items you are interested in having appraised.  Should you have
questions about whether a particular item warrants an appraisal, we can help
guide you through the process and decision-making.  We will prepare an inventory listing a full description of each item including: artist or maker, type of object, title and subject, medium or materials, date or period, condition, provenance and dimensions.  In addition, each work will be digitally photographed for inclusion in the final appraisal report.

 

Research: Back at our office, documented research is conducted for each item in the inventory.  Comparable prices from galleries, auction houses, dealers and sales records are analyzed to determine the most appropriate market for each piece in question.  The items found in the marketplace are compared to the subject piece, the characteristics of value are weighed, and the appropriate estimated value assigned to the subject piece. 

 

Fees: Contracts outlining the scope of services, terms and conditions, and
estimated costs will be submitted for approval on-site once the items to be
appraised have been viewed and before work begins.  Upon completion, an
appraisal document that is compliant with the Uniform Standards of Accepted
Appraisal Practice and the Principles of Appraisal Practice and Code of Ethics of the American Society of Appraisers is submitted along with an optional digital version for archival use.