Appraisals 101: When You Need an Appraisal — Costs, Types, and What to Expect

What is an appraisal and why it matters

An appraisal is a formal, professional opinion of an item's value. It's not just a guess; it's a conclusion based on research, market data, and expert knowledge. Appraisals are crucial for many reasons: equitable distribution of assets in an estate, securing proper insurance coverage, tax purposes, or simply to understand what you have before selling.

Types of appraisals (insurance, estate, fair market)

The "value" of an item can change depending on the purpose of the appraisal:

• Insurance Value (Replacement Cost): This is the highest value, representing what it would cost to replace the item with a similar new one from a retail store.
• Estate Value (Fair Market Value): This is what a willing buyer would pay a willing seller in a typical, unforced sale (like an auction or estate sale). This value is used for tax purposes when settling an estate.
• Liquidation Value: This is the value if an item must be sold very quickly, and is typically lower than Fair Market Value.

It's important to know which type of appraisal you need.

Typical cost ranges and factors that affect price

Professional appraisers typically charge an hourly rate, not a percentage of the item's value (which is a conflict of interest). Rates can vary based on the appraiser's experience and location. The cost will depend on the time it takes to research and document your items. A single item might take an hour, while a full house could take one or more days. We provide a clear estimate of hours before any work begins.

How to choose a qualified appraiser (credentials to look for)

Look for an appraiser who is a member of a professional organization like the Appraisers Association of America (AAA) or the International Society of Appraisers (ISA). These organizations require their members to adhere to strict ethical standards and be compliant with the Uniform Standards of Professional Appraisal Practice (USPAP), which is the industry benchmark.

What we include in our appraisal reports

A formal appraisal report is a detailed document. For each item, it will include:

• A full description of the item, including its measurements, materials, and condition.
• The item's history or provenance, if known.
• High-quality photographs.
• The value conclusion and the methodology used to arrive at it.
• The appraiser's signature and qualifications.

Next steps: appraisal → auction/consignment/sale

Once your items have been appraised, you have a clear understanding of their value. From there, you can make informed decisions about what to do next, whether that's selling them in one of our online auctions, consigning them for private sale, or ensuring they are properly insured for the next generation.