When it comes to appraisals, most people first think of their home, but household items and possessions on our property often have value as well, both emotionally and monetarily. Professional appraisers offer services to determine the dollar value of possessions.
There seems to be no limit to the variety of items that can be appraised. Collector cars, grandfather clocks, pianos, china, silverware, coins, stamps, old cameras, wine collections, model railroads, and even comics are some of the many items with a monetary value that a competent appraiser can determine. Knowing the value of your possessions by having an appraisal done is a good idea for a number of reasons:
It satisfies curiosity about the fair market value of what you own.
With an appraisal, you can obtain or adjust your insurance coverage to reflect the current value of your possessions.
If you're planning on selling something, an appraisal provides potential buyers with a good idea of what the item is worth and its condition.
Depending on the tax laws, donating certain items to a charity can be used to reduce your payable tax. A written appraisal is the documentation needed when filing your taxes.
In the wake of a divorce or death, possessions are usually either sold or distributed. Having an appraisal done of household/estate items assures each person that they are not being short-changed.
Depending on what you want to have appraised, finding a qualified appraisal service can be as easy as looking in your local Yellow Pages, or you may need to do more searching. Non-real estate appraisers are in one of two categories: generalist or specialist. Determining the fair value for unusual items like old historical manuscripts or 18th-century pistols is not the specialty of most appraisers. Finding the right appraiser for your item is important because an inaccurate appraisal could result in you losing money if you sell the item for less than what it is actually worth.
Many people find good appraisers through word of mouth - they ask friends or shopkeepers who sell similar items. However you find an appraiser, remember to review his/her credentials. Interview the appraiser to confirm that they have extensive training/education and certification (if applicable) in their area of specialty. Ask to see related documentation and request references. Contact the Better Business Bureau, your local Chamber of Commerce, and/or the provincial ministry of corporate affairs to determine if there have been any complaints against the appraiser. Find out how much they charge and confirm that he/she will provide you with a detailed, written appraisal.
Some appraisers belong to the International Society of Appraisers (ISA), a not-for-profit society comprised solely of personal property appraisers. Accredited ISA members have at least three years of experience in the field and have successfully completed the core courses offered by ISA. An Accredited Member may use the ISA designation. A more senior level is as a Certified Member, meaning they have earned the Certified Appraiser of Personal Property (CAPP) designation. Certified members will use the CAPP designation.
The cost of appraisals varies. You may be charged an hourly rate or, if you have a large number of items to be appraised, you may be able to negotiate a flat rate for the entire job. The charges should be based on the amount of time it takes to inspect a piece, do research and prepare a written document, if needed. Remember that an appraiser should not charge you a percentage of the value of the item. (A fee based on a percentage of the value is an incentive for less reputable appraisers to overvalue items.) If you are selling items through an auction house, the auctioneer/appraiser from that establishment may be willing to appraise your items for free.
There are online appraisal services, which usually require that you submit a written description of your item and one or more photos. Be aware that it can be difficult for an appraiser to accurately determine the true value of an item in this manner. For example, if you have an antique desk that you want appraised, a good appraiser would want to see it in person, to inspect its surfaces, quality of construction, the ease of opening and closing drawers, etc. As well, our digital age has made it very easy for people to touch up photographs; a truly professional appraiser will not want to provide a written appraisal on something they have not seen in person. However, if you choose an online appraisal service, at least be sure to check the credentials of the person who will be conducting the appraisal for you.
Once you've had a professional appraisal of an item done, give a copy of the report to your insurance company, and increase your coverage if necessary. Some insurance companies may want to see the original report and make their own copy. You can also keep appraisal reports in a fireproof safe in your home or safety deposit box in your financial institution. In the unlikely event of severe damage to your home, you will have the documented proof of your more valuable items.
Having your personal property appraised is the best way to establish the value of your possessions and protect your financial worth with adequate insurance. And who knows? You may discover that a knick-knack that's been in the family for generations is actually worth quite a bit! [Return to Homeowners Guide]
© Copyright 2006 Sutton Group Financial Services Ltd. |