Appraiser FAQ

What is an Appraisal:

An appraisal is the method used in determining the value of property. Value can be described as the worth or market price of an article or property.

Purpose for Appraisal:

In determining the appropriate value of property, the Appraisers must first identify the reason or reasons for which the appraisal is required. The general rule for Appraisers in determining the valuation of an item is based on the Fair Market Value. In certain situations, Appraisers may be required to determine a property’s Replacement Value or perhaps the Liquidation Value.

Fair Market Value:

Appraisers will often describe value as Fair Market Value. Fair Market Value can defined as the price at which property would change hands between a willing buyer and a willing seller, with neither party being under the compulsion to buy or sell and with both parties having reasonable knowledge of the relevant facts pertaining to the property.

Replacement Value:

The Replacement Value is best described as the cost of replacing an item that may have been lost or destroyed. Appraisers would use this method of valuation for insurance purposes.

Liquidation Value:

The Liquidation Value is often used by the Appraisers in Business Closures and in Bankruptcies and is best described as the price paid for property where financial situation or limiting circumstances are present and that which may require a sacrifice from the seller.

Method of Valuation:

The most common method of valuation the Appraisers use is based on comparable sales. This method involves the comparison of values obtained from the sale of similar or like items.

The accredited Personal Property Appraisers at The Auction Guy, will provide you with a complete and accurate appraisal for all your most precious items. You can be confident in knowing that you are dealing with a professional. For all Personal Property Appraisals, contact The Auction Guy!