About Appraisals
What is an appraisal?
An appraisal is an unbiased, supportable estimate of a defined value by a person who is trained in research and analysis, knowledgeable of the property being appraised, and who acts in accordance with accepted and professed standards of practice. An appraisal is contained in an appraisal report, which is a legal document that describes and values property in a manner that will stand up in court, if necessary.
What is personal property?
Personal property is tangible, movable property that is utilitarian, collectible, decorative or a combination of the three. These can be items such as paintings, china, antiques, sculptures, photography, vintage music posters, toys, commercial advertising, musical instruments, professional camera equipment, fine watercraft or automobiles, silverware, jewelry, wine or other collectibles.
What is a personal property appraiser?
A personal property appraiser identifies and provides a value for these types of objects. A personal property appraiser is a trained, objective and ethical individual the public can rely on to provide a competent, fair assessment of value.
Types of Appraisals
Insurance Appraisals
To prove irrefutable possession at the date of valuation, provide needed protection in the event of a loss, and to assist in establishing proper insurance coverage.
If you are a homeowner, you will want to check your homeowner’s insurance policy in order to know what coverage limits exist on your valuables. There is a good chance that a separate policy schedule will be needed to cover certain items of value. Consult your insurance agent to determine if you need a personal property appraisal.
In our experience we have been witness to the disastrous effects of natural disasters on personal property. If your fine arts, antiques, or collectibles are not insured, you may be at risk of losing these items without receiving compensation.
Charitable Donations
When claiming a tax deduction on charitable contributions of fine art, decorative arts, antiques, and other objects of art, the IRS requires that the donor obtain an appraisal by a qualified appraiser when the fair market value of individual items or group of similar items donated is more than $5,000. Wayne Bancroft Auctions performs donation appraisals in conformity with IRS requirements.
Estate Valuation & Estate Planning
To clarify questions of property value, facilitate the disposition of estate tax reporting requirements, assist heirs with distribution and/or de-accessioning property; to assist financial planners and related professionals in establishing a client’s net worth, and as a basis for judicious estate planning.
Wayne Bancroft Auctions performs appraisals for estate tax, gift tax, and estate distribution. We specialize in antiques, collectibles, farm machinery, and also in general household contents. Consult your attorney or accountant who will advise you as to when you will need an appraisal.
Division of Property
Divorce (Equitable Division/Distribution of Assets)
A divorce is a trying time in a person's life but a personal property appraiser is indispensable for an equitable division of marital assets. In order to save time and money a property appraiser is the first professional the administrator, arbiter, or attorney should call.
Benefits of a mutually agreed upon personal property appraiser:
Corporate uses in this category include mergers/acquisitions, and loan collateral.
Interested in having us do an appraisal for you? Please send us your information
To prove irrefutable possession at the date of valuation, provide needed protection in the event of a loss, and to assist in establishing proper insurance coverage.
If you are a homeowner, you will want to check your homeowner’s insurance policy in order to know what coverage limits exist on your valuables. There is a good chance that a separate policy schedule will be needed to cover certain items of value. Consult your insurance agent to determine if you need a personal property appraisal.
In our experience we have been witness to the disastrous effects of natural disasters on personal property. If your fine arts, antiques, or collectibles are not insured, you may be at risk of losing these items without receiving compensation.
Charitable Donations
When claiming a tax deduction on charitable contributions of fine art, decorative arts, antiques, and other objects of art, the IRS requires that the donor obtain an appraisal by a qualified appraiser when the fair market value of individual items or group of similar items donated is more than $5,000. Wayne Bancroft Auctions performs donation appraisals in conformity with IRS requirements.
Estate Valuation & Estate Planning
To clarify questions of property value, facilitate the disposition of estate tax reporting requirements, assist heirs with distribution and/or de-accessioning property; to assist financial planners and related professionals in establishing a client’s net worth, and as a basis for judicious estate planning.
Wayne Bancroft Auctions performs appraisals for estate tax, gift tax, and estate distribution. We specialize in antiques, collectibles, farm machinery, and also in general household contents. Consult your attorney or accountant who will advise you as to when you will need an appraisal.
Division of Property
Divorce (Equitable Division/Distribution of Assets)
A divorce is a trying time in a person's life but a personal property appraiser is indispensable for an equitable division of marital assets. In order to save time and money a property appraiser is the first professional the administrator, arbiter, or attorney should call.
Benefits of a mutually agreed upon personal property appraiser:
- Negotiations are usually quicker and simple.
- The values of assets are made irrefutable and acceptable to both parties.
- Reduces attorney costs and litigation time.
Corporate uses in this category include mergers/acquisitions, and loan collateral.
Interested in having us do an appraisal for you? Please send us your information
Frequently Asked Questions About Appraisals
What is an appraisal?
An appraisal is an unbiased, supportable estimate of a defined value by a person who is trained in research and analysis, knowledgeable of the property being appraised, and who acts in accordance with accepted and professed standards of practice. An appraisal is contained in an appraisal report, which is a legal document that describes and values property in a manner that will stand up in court, if necessary.
What is a personal property appraisal?
A personal property appraisal refers to the appraisal of identifiable portable and tangible objects considered by the general public as being “personal,” for example, artwork, furnishings, antiques, collectibles, and residential contents. In other words, personal property is all tangible property that is not classified as real estate.
When is it necessary to have personal property appraised?
There are a variety of reasons. For example, for insurance coverage, insurance damage claims, when claiming a deduction for charitable donations, when calculating estate taxes, for estate distribution, divorce litigation, divorce settlement, and bankruptcy.
How does one go about finding a Michigan personal property appraiser?
Through referrals and, if you have access to a computer and the Internet, this is one of the best options. The Internet allows you to search for appraisal services tailored to your specific needs.
I just purchased a painting and the dealer offered to appraise it. Why then would I need an independent appraiser?
The dealer you purchase an item from has an interest in that item, and that opens a window for conflict of interest in valuing that item. An independent appraiser has no interest in that item, and therefore can provide an unbiased opinion of value. Additionally, the dealer may not know how to evaluate the item for its appropriate worth. Without appraisal training on appraisal principles and procedures, he/she may not understand the complicated variety of marketplace definitions that are used to determine appropriate values for appropriate uses.
Can more than one value apply to the same item?
Yes, the same item may have different appraised values depending on the intended use of the appraisal. To illustrate, the value for insurance coverage may be different than the value for estate tax, charitable donation or consumer resale. Qualified educated appraisers understand the many different types of values, assigned uses, and market levels. Your appraiser will work with you to choose the proper type of value so that you can use the appraisal correctly and effectively.
Are there different types of Michigan appraisers or are they all the same?
While many appraisers adhere to professional appraisal guidelines, others do not. For the most accurate, professional, and credible appraisal, the wisest choice is to hire an appraiser who has formal education in appraisal theory, principles, procedures, ethics, and law, who conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), has ample experience, and is an accredited member of a professional appraisal association. Wayne and Carol Bancroft are Graduate Personal Property Appraisers certified through the National Auctioneers Association.
What does a Wayne Bancroft Auctions appraisal report consist of?
(a) A cover letter, (b) a title page, (c) a table of contents, (d) main body of the report, which explains what type of value is being sought (“purpose”), how the appraisal is to be used (“intended use”), the scope of work, methodology and resources relied upon, market analysis and markets selected, a complete and accurate description of the property along with color images and values assigned, limiting conditions, and the appraiser’s certification; (e) glossary; (f) bibliography; (g) appraiser’s qualifications; and (h) annex of selected research. The client receives two color originals.
How are appraisal fees established?
Appraisals are charged on an hourly basis. We recommend you do not hire an appraiser who charges a percentage of the appraised value because that creates a conflict of interest and may result in biased values.
What other services does Wayne Bancroft Auctions provide?
Oftentimes clients may not need a formal appraisal but would like to have an idea of how much their items are worth. We will provide our clients with a letter containing an opinion of value upon which they can base their financial decisions. Another situation is when clients request an organized descriptive and pictorial inventory of their possessions for their organization needs or to have ready in case of possible future damage. Wayne Bancroft Auctions can provide such an inventory tailored to the client’s specific needs.
In addition Wayne Bancroft Auctions offers complete auction services with expertise in estate auctions, consignment auctions, farm and machinery auctions, restaurant, business, and equipment liquidations, benefit, charity, and fundraising auctions.
An appraisal is an unbiased, supportable estimate of a defined value by a person who is trained in research and analysis, knowledgeable of the property being appraised, and who acts in accordance with accepted and professed standards of practice. An appraisal is contained in an appraisal report, which is a legal document that describes and values property in a manner that will stand up in court, if necessary.
What is a personal property appraisal?
A personal property appraisal refers to the appraisal of identifiable portable and tangible objects considered by the general public as being “personal,” for example, artwork, furnishings, antiques, collectibles, and residential contents. In other words, personal property is all tangible property that is not classified as real estate.
When is it necessary to have personal property appraised?
There are a variety of reasons. For example, for insurance coverage, insurance damage claims, when claiming a deduction for charitable donations, when calculating estate taxes, for estate distribution, divorce litigation, divorce settlement, and bankruptcy.
How does one go about finding a Michigan personal property appraiser?
Through referrals and, if you have access to a computer and the Internet, this is one of the best options. The Internet allows you to search for appraisal services tailored to your specific needs.
I just purchased a painting and the dealer offered to appraise it. Why then would I need an independent appraiser?
The dealer you purchase an item from has an interest in that item, and that opens a window for conflict of interest in valuing that item. An independent appraiser has no interest in that item, and therefore can provide an unbiased opinion of value. Additionally, the dealer may not know how to evaluate the item for its appropriate worth. Without appraisal training on appraisal principles and procedures, he/she may not understand the complicated variety of marketplace definitions that are used to determine appropriate values for appropriate uses.
Can more than one value apply to the same item?
Yes, the same item may have different appraised values depending on the intended use of the appraisal. To illustrate, the value for insurance coverage may be different than the value for estate tax, charitable donation or consumer resale. Qualified educated appraisers understand the many different types of values, assigned uses, and market levels. Your appraiser will work with you to choose the proper type of value so that you can use the appraisal correctly and effectively.
Are there different types of Michigan appraisers or are they all the same?
While many appraisers adhere to professional appraisal guidelines, others do not. For the most accurate, professional, and credible appraisal, the wisest choice is to hire an appraiser who has formal education in appraisal theory, principles, procedures, ethics, and law, who conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), has ample experience, and is an accredited member of a professional appraisal association. Wayne and Carol Bancroft are Graduate Personal Property Appraisers certified through the National Auctioneers Association.
What does a Wayne Bancroft Auctions appraisal report consist of?
(a) A cover letter, (b) a title page, (c) a table of contents, (d) main body of the report, which explains what type of value is being sought (“purpose”), how the appraisal is to be used (“intended use”), the scope of work, methodology and resources relied upon, market analysis and markets selected, a complete and accurate description of the property along with color images and values assigned, limiting conditions, and the appraiser’s certification; (e) glossary; (f) bibliography; (g) appraiser’s qualifications; and (h) annex of selected research. The client receives two color originals.
How are appraisal fees established?
Appraisals are charged on an hourly basis. We recommend you do not hire an appraiser who charges a percentage of the appraised value because that creates a conflict of interest and may result in biased values.
What other services does Wayne Bancroft Auctions provide?
Oftentimes clients may not need a formal appraisal but would like to have an idea of how much their items are worth. We will provide our clients with a letter containing an opinion of value upon which they can base their financial decisions. Another situation is when clients request an organized descriptive and pictorial inventory of their possessions for their organization needs or to have ready in case of possible future damage. Wayne Bancroft Auctions can provide such an inventory tailored to the client’s specific needs.
In addition Wayne Bancroft Auctions offers complete auction services with expertise in estate auctions, consignment auctions, farm and machinery auctions, restaurant, business, and equipment liquidations, benefit, charity, and fundraising auctions.