When an appraisal is worth doing
Get a documented appraisal when value affects taxes, charitable donation support, probate, estate division, insurance scheduling, divorce, damage claims, loan collateral, or a major sale decision. A quick verbal opinion can help triage objects, but it is not a substitute for a report when another party must rely on the number.
Common personal-property categories include furniture, fine and decorative art, jewelry, silver, pottery, porcelain, rugs, books, manuscripts, autographs, toys, cameras, advertising, coins, stamps, watches, instruments, and collections with provenance.
Choose the value type before the appraiser starts
- Fair market value. Often used for donations, estate contexts, and open-market analysis. It asks what informed willing parties would agree to in the relevant market.
- Replacement value. Often used for insurance scheduling. It can be higher than fair market value because it asks what replacement would cost.
- Auction estimate. Useful for sale planning, but not the same as a tax appraisal or insurance schedule.
- Liquidation value. Useful when speed matters, but it should not be confused with normal-market value.
What to prepare before an appraisal
Give the appraiser clear photographs, dimensions, condition notes, marks or signatures, receipts, family history, previous appraisals, auction records, restoration history, original boxes, labels, and any certificates or expert letters. For art, IRS guidance points to details such as artist or maker, title, medium, date, dimensions, signature information, hallmarks or marks, edition information, condition, provenance, exhibition history, authenticity support, and professional images.
What a credible report should explain
A useful appraisal should state the intended use, intended users, effective date, property description, appraiser qualifications, value type, value conclusion, valuation method, and specific basis for the valuation. Comparable sales are often the clearest support for antiques and collectibles, but condition, rarity, provenance, market demand, and authenticity can change the conclusion.
Red flags
- The appraiser wants to buy the object while setting the value.
- The fee is based on a percentage of appraised value.
- The report gives a number without describing the market, method, or evidence.
- The appraiser uses insurance replacement value for a donation claim without explaining the mismatch.
- Expensive objects are valued from one blurry photo and no measurements or condition details.