Six Key Situations When You Need a Personal Property Appraisal

Personal property refers to the belongings that each of us has that we can carry with us when moving from place to place. Essentially, it includes everything we possess that isn’t attached to the ground. So all of our furniture, our decorative items, our clothes, electronics, rugs, art, collectibles, and even our vehicles – cars, bicycles, motorcycles, tractors, etc. An appraisal is the determination of value for these items, usually expressed as monetary value. An accurate valuation matters in that it can help us (and those around us) to make better decisions about how to manage these belongings.

1. Estate Settlement

Estate executors and heirs often need to know what the belongings of the deceased are worth. This helps with an equitable division among the heirs and in general contributes to a smooth settlement of the estate. Because state or federal taxes can sometimes be involved in this settlement, having a USPAP-compliant appraisal report is useful. In fact, attorneys or courts often require USPAP-compliant documentation.

2. Non-cash Charitable Donations

The IRS requires a qualified appraisal for non-cash donations over $5,000. (There are some exceptions, please see your tax preparer.) A written appraisal is crucial to support the donor’s tax deduction claim. This kind of appraisal is common when large collections or high value items are being donated. The donee must be a recognized charity.

3. Insurance Coverage & Claims

Standard homeowner’s insurance policies do not automatically cover all of your belongings at their full value. If you have high value items, genuine antiques, art, or a valuable collection, it may be advisable to schedule these things separately on your policy. This ensures you have adequate coverage and can smooth claims if you incur a loss.

4. Divorce / Equitable Distribution

A written appraisal provides a neutral, defensible valuation for dividing martial property. The same applies when dividing a business. The appraisal report helps the attorneys to resolve disputes fairly. USPAP-compliant reports add credibility.

5. Preparing to Sell Items or Collections

If you are considering selling items you own, having an appraisal can help prevent underpricing valuables and gives sellers a realistic expectation of market value. Having such an appraisal can be useful in advance of things like estate sales, private sales, or online listings such as EBay.

6. Downsizing or Planning a Move

If you need to downsize or are moving and don’t want to take everything with you, an appraisal can help when making decisions about what to keep, what to donate, and what to sell. This is often helpful for seniors, families relocating, or anyone looking to reduce clutter or otherwise simplify their home.

In conclusion, I’d remind my readers that it is important to know when an appraisal may be needed. Like other professional advice, appraisals can make a big difference when it comes to making sound decisions. Please use the Contact page to reach out with any questions or if you’d like to discuss your appraisal needs. I am located in NW PA but can travel to you! Some assignments can be completed online.