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eBay Auctions
For Sale
16th Century
Shchiavona
Michael Wilkinson
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Preparing for an Appraisal |
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This section is designed to help
you speed up the appraisal process.
ON SITE APPRAISALS
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You can help the appraiser by having all
the items easily accessible. This means that items should be
taken out of boxes, or displayed in open areas. Another way to
speed along the process is to have all like sets together. This
is especially relevant for china and flatware.
Make any receipts easily available for the appraiser to view. It is also
very helpful to know the following information:
1.
How much
did a specific item cost? Exact numbers are not always necessary.
Estimates are acceptable.
2.
Where did you buy an item? This allows the appraiser to
view retailers
catalogues and get all relevant information of a piece.
3. When did you buy an item? This will speed along the appraisal process by
allowing the appraiser to narrow his search for relevant information.
OFFICE
APPRAISALS
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Please know that our office is on the second floor and there is no
elevator. This means that items must be able to be carried up to our
office. Our office staff is more than happy to assist any person in
moving the items to our office (within reason). Exceptions will be made
for vehicles only. Make any receipts easily available for the appraiser
to view. It is also very helpful to know the following information:
1.
How much
did a specific item cost? Exact numbers are not always necessary.
Estimates are acceptable.
2.
Where
did you buy an item? This allows the appraiser to view backlogged
catalogues and get all relevant information of a piece.
3.
When did you buy an item? This will speed along the appraisal process by
allowing the appraiser to narrow his search for relevant.
APPRAISALS FROM
PHOTOGRAPHS
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We are able to appraise items from photographs, but there are limiting
conditions. Items that have antiquity value need to be viewed in person
to verify authenticity. If proper verification is presented with the
photographs we can appraise an item that is antique. Included with the
photographs should be measurements and any other relevant information.
If the appraiser does not feel like he has enough information to
properly appraise an item then he will be unable to determine a value.
Make any receipts easily available for the appraiser to view. It is also
very helpful to know the following information:
1.
How much
did a specific item cost? Exact numbers are not always necessary.
Estimates are acceptable.
2.
Where
did you buy an item? This allows the appraiser to view backlogged
catalogues and get all relevant information of a piece.
3.
How long
ago did you buy an item? This will speed along the appraisal process by
allowing the appraiser to narrow his search for relevant
SCOPE
OF WORK
APPRAISAL METHODS
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This appraisal utilizes one or more of the following appraisal methods
in determining the Value/s. |
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Cost Summation Method:
The Cost Summation Method is an estimate of what it will cost to
produce, demolish, alter or repair a tangible property. The method
consist of adding together all of the estimated individual items of
cost. There are two kinds of items of cost (1) items purchased in the
open market, appraised at buyers cost by the pricing principal. (2)
Items such as labor, supervision, indirect expense, financing and so
forth, appraised on the basis of recorded data derived from past
experience. These appraisals are forecast of costs and rely on the
causal and continuity postulates. |
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Sales Analysis Method:
This method is based on an analysis of the prices at which comparable
properties have sold. The market value of the subject property is the
most probable price which it would bring if offered for sale. A
comparable property is one which has the same value elements as the
subject property (but not necessarily, or even generally, in the same
proportions). The Sales Analysis Method assumes that the price at which
a comparable property sold, was the result of a particular
weighted-combination of value elements comprised in that property. The
existence of the value elements, in certain proportions, is assumed to
be the cause which produces the sales price as an effect. This
appraisal method utilizes the causal postulate. |
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Income Approach:
The Income Approach involves estimating the subject’s potential for
generating income for its owner. The income is then capitalized, or used
to estimate value, by one or more of several methods. Capitalization may
be based on the ratio of annual income to sales price as exhibited in
market sales. Alternatively, projected future income may be discounted
to its present value at a discount or yield rate derived from current
market yield expectations. Tangible property utilized in a business is
only one component in the production of income. It is difficult to
isolate the income attributable to only the building or only the
equipment. When personal property or equipment is appraised, the income
approach is not normally applicable. |
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Although we considered all three approaches to value, we relied on the
Cost and/or the Market Approaches. The Income Approach was considered,
but was not used in this appraisal.
DEFINITION OF VALUES
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The definition of "Replacement Cost Value" is the cost of
replacing the property exactly or with similar property of equal
quality, value and age. The value in this category is determined by and
is the result of consideration given to one of the following: The cost
of replacement new, the cost of replacement used, or the cost of
replacement as is. Furthermore, other considerations include the
expected normal useful life of the item, observed obsolescence "as a
result of age", maintenance and condition, function and economic
obsolescence, as well as average market conditions of supply and
demand. Also, estimated costs of acquisition, transportation,
installation, service connections, sales tax or other possible charges
if applicable, have been incorporated in the final appraised value of
this category. |
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The definition of "Actual Cash Value" is the amount of
Replacement Cash Value less depreciation. |
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The definition of "Fair Market Value" as referred to in
this report is that amount expected to be received in the transfer of an
asset between a willing buyer and a willing seller, both knowledgeable
in the use of and condition of the subject asset and neither being under
compulsion to buy or sell. Market value may include personal property
not installed and ready for use upon completion of installation, the
only difference being the cost of transportation and installation.
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“Fair Market Value” generally relates to used personal property and is
valued at replacement cost less depreciation, or it may be the product
of any investigation of prices in the open market for personal property
of like kind and quality. |
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The definition of "Fair Market Value In Place/In Use" as
referred to in this report is that amount expected to be received in the
transfer of an asset between a willing buyer and a willing seller, both
knowledgeable in the use of and condition of the subject asset and
neither being under compulsion to buy or sell. "Fair Market Value-In
Place/In Use” includes installation and the contribution of the item to
the operating facility. The value presupposes the continued utilization
of the item in connection with all other installed items. The estimated
cost for installation, service connections and production output are
incorporated into the final appraised value. |
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"Fair Market Value In
Place/In Use" generally relates to used personal property and is valued
at replacement cost less depreciation, or it may be the product of any
investigation of prices in the open market for personal property of the
like kind and quality. |
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The definition of "Liquidation Value" is the amount that
can probably be obtained for a property under the conditions of a forced
sale, or the net amount that can probably be obtained by sale of the net
assets of a business enterprise upon dissolution. |
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The definition of "Fair Rental Value" is: an opinion as to
the amount or amounts of the periodic rent which can be obtained for the
use of a specified piece of personal property. Said periodic rent shall
be a monthly rental rate unless stated otherwise. The age, condition,
location, original purchase price or replacement cost of said specified
piece of personal property shall be taken into consideration in the
final determination of the Fair Rental Value. |
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The definition of "Salvage Value" is the amount that can
probably be obtained by sale of a component of a property which has been
separated from the whole because the component is no longer useful as a
part of the whole property. |
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As defined by the
I.S.A. a Hypothetical Appraisal is based wholly or in part on unknown and/or unobtainable
information. It may be a proposition advanced as possibly true and
consistent with known data but requiring further investigation; be a
theory so well established as to be generally accepted; be an unproven
conclusion drawn from known facts; or contain a contingency not normally
acceptable, i.e., appraising property without personal examination
because it has been consumed by fire, lost, stolen, previously sold or
unavailable for viewing. |
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As defined by the
A.S.A.: Hypothetical Appraisal
“is an appraisal made under assumed conditions that are contrary to
fact”.
APPROACH TO THE VALUE
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In addition to out physical inspection, where possible, we considered
the history, character, location, size and utility of the subject
property.
We have also
considered the following:
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Comparable personal property prices from reputable used dealers, where
available and supportable. Adjustments were made, where applicable and
appropriate, to reflect the differences between the subject and
comparables.
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The value of the personal property not normally traded or
supportable on used market has been determined by establishing the cost
of Replacement New. From this amount deductions for physical
deterioration and functional obsolescence were taken into consideration
where applicable. |
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We have considered where measurable, the condition and
quality of the personal property, its utility and degree of functional
or economical obsolescence. |
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Where applicable, consideration has been given to currency
exchange, duties, taxes, freight, installation and other fees, where
applicable. |
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In making our investigation, where possible, we reviewed the physical
condition of all pieces of personal property. |
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The personal property is considered to be well maintained and appears to
be in (G) good operating condition, unless stated otherwise in this
report.
COMMUNITY &
NON-COMMUNITY PROPERTY
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If the appraisal is being done for the purpose of dissolution of
marriage then the issue of community and non-community becomes relevant.
Non-Community property is not considered in the total assets. Therefore
it is important to know which is community and which is non-community
property. The appraiser does not have the final say on this subject, it
is left up to lawyers involved. Non-Community property is defined as:
Anything belonging to either party before date of marriage. Anything
given to one party only as a gift. Anything belonging to parties not
involved in the divorce. Anything purchased post date of separation. For
a more detailed definition of these properties ask your lawyer. Often
items indicated to be non-community property by one party are disputed
by the other party. Therefore, in our appraisal report we will identify
every item defined by one party as non-community. It will be placed in a
separate column, but it will have a value. |
-Neale & Sons Inc.
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