Why should I get an appraisal?
Lots of possible reasons. It can be as simple as satisfying your curiosity about an object. It can help establish a price when selling or donating. It can be crucial in the distribution of property among family members in an estate or divorce. A huge reason is to secure adequate insurance and prevent under-insurance, to protect against damage, loss, or theft.
When should I get an insurance appraisal?
You should get a replacement value appraisal for insurance purposes whenever the object is so valuable to you that you would replace it in the event of its loss. Due to inflation and the rising cost of replacement and insurance, the appraisal should be updated at least every 3 years.
What is the difference between scheduled fine arts and homeowners’ insurance?
Home or apartment dweller’s insurance covers whatever is inside the four walls. It is most often more expensive than scheduled insurance because the insurance carrier is responsible for the dollar amount that you provided. Compare rates for these policies with your insurance carrier, and contact BCG for appraisal advaice on your most valuable objects.
What makes a piece of artwork outstanding or not?
A piece of art may move you, but it may not move the market in the same way. Current insight into the art market, in-depth research into the artwork, and the artist’s standing in the market are crucial to determining market value, the truest measure of whether a work is ‘outstanding’ or not. BCG can guide you in your decisions on that ‘important’ artwork, with our objective measures of value, facts, and professional opinions.
What is the difference between Fair Market Value and Replacement Value?
Fair Market Value is defined as “the most probable price at which property would change hands between a willing seller and a willing buyer.” So, it describes the value of an object on the open market right now. It is not a current cost to replace the object. Fair Market Value is used for settling an estate, providing equitable distribution, or making a charitable donation.
Replacement Value is used most often for insurance purposes. It refers to the estimated cost to replace an item of equal quality, appearance, size, and origin. Replacement cost value can include tax, shipping, and installation. The replacement value would most often be based on the current retail market instead of a secondary market, and is often higher than Fair Market Value.
How long does an appraisal take?
“It depends.” On what? Execution of a professional appraisal can differ widely from project to project. Some considerations: does the appraisal include rare, hard-to-find, even one-of-a-kind items? Is there a large quantity of items for appraisal? These factors can increase the time needed to complete a professional valuation. The appraiser’s work time can be significantly reduced when the appraised objects are easily accessible for examination and if they have well-documented provenance (receipts and history of previous owners).
How do you charge for appraisal services?
Top professional appraisers charge for their services based on the ethical guidelines published by the national appraisal professional organizations, ASA – the American Association of Appraisers, and AAA – the American Appraisal Association. Such appraisal fees must conform to USPAP, the Uniform Standards of Professional Appraisal Practice established by Congress in 1989, which sets standards for all types of appraisal services.
Appraisal fees are professional fees, not a form of commissions or percentages of appraised value. The ethical appraiser has no financial or personal interest in the appraised items and does not charge based on the appraised item's value. So each professional appraisal sets standardized fees based on work time, including personal examination of the appraised objects, photography, research conducted in establishing the fair market or replacement value of the objects including provenance, and preparation of the appraisal report, a document that may need to face scrutiny by a court or the Internal Revenue Service, depending on the type of appraisal needed by the client and its purpose.
