What You Need to Know About Personal Property Appraisals

Bullion is physical precious metal - typically gold, silver and platinum - in tradable form like coins, rounds or bars. (It’s not to be confused with Bouillon seasoning which is a concentrated flavor enhancer). With gold and silver at record highs, people are increasingly looking for precious metal that they can monetize. Key things for appraisers to consider include the variable market for precious metals and the weight and fineness of the bullion.

Final Day! Everything Must Go Now! Fire Sale! No Reasonable Offers Refused! This sense of urgency is what characterizes Forced Liquidation Value. One of the most typically encountered definitions of value - Fair Market Value - assumes an orderly liquidation without a forced sale or sale under duress. Forced liquidation assumes a quick sale with limited marketing. Internal Revenue Regulation Section 1.170A-1(c)(2) defines fair market value as: The price at which property 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. A Forced Liquidation Value adds time pressure - a compulsion to sell - and Treasury Regulations which define fair market value specify, “The fair market value of a particular item of property includible in the decedent’s gross estate is not to be determined by a forced sale. Nor is the fair market value of an item of property to be determined by the sale price of the item in a market other than that in which such an item is most commonly sold to the public, taking into account the location of the item wherever appropriate.”

An appraiser might encounter several different types of value when performing an appraisal assignment. The Uniform Standards of Professional Appraisal Practice (USPAP) provide standards within the appraisal profession, but does not have a definition of market value for personal property. Instead, appraisers have to apply the proper definition of value considering the needs of the client and the intended use of the assignment. One of these types of values is Liquidation Value, of which there are two distinct types: Orderly Liquidation Value and Forced Liquidation Value. The difference in the amount of time to sell the property. Where the Forced value assumes a very short period of time, more common is the Orderly Liquidation Value where an appraiser considers the most probable price that a property would change hands between knowledgeable buyers and sellers in an orderly manner, with a reasonable amount of time which is broadly considered to be three to six months. This allows for things like proper advertising and marketing, providing the chance to present the property in an appropriate marketplace with knowledgeable sellers and buyers.

Gold and silver are at record highs, and copper saw a record this summer. With increased attention towards precious metals comes increased need to consider salvage and scrap value when dealing with items that contain metals. Salvage value considers an item that is damaged or has components that have individual value, while scrap value provides a floor value that considers raw materials that can be isolated and monetized.

When you file an insurance claim for a lost, stolen, or damaged valuable, your provider will ask for one thing above all else: proof of value. The two most common forms of documentation are a purchase receipt and a professional appraisal, but they are not interchangeable. Providing the right documentation is crucial for a smooth claims process and a fair settlement. The wrong type can lead to delays, underpayment, or even a denied claim. Key Takeaway: Having the right documentation before a loss occurs is the single best way to protect yourself from underpayment or a denied claim. This guide will walk you through the difference between appraisals and receipts, what insurance assessors look for, and how to ensure you have the right proof of value to protect your assets.