TYPES OF APPRAISAL SERVICES

INSURANCE APPRAISALS

     Insurance companies usually use two basic types of appraisals. Appraisals are used most often for securing insurance coverage before a loss or claim is filed.  

Insurance Appraisal

     A very detailed description with precise measurements and grades, digital images summarize the value of the item in the appropriate market.

Insurance Casualty Loss Appraisal

     This type of appraisal is determines the amount of value if there was a partial loss or after the loss has incurred.  This may settle a claim for a chipped or damaged gemstone or for a ring that is lost.  

Resale Appraisals

     There are several approaches to these types of appraisals.  Depending on the amount of detail that you would need or how quickly you need to sell.

Resale Appraisal – Market Value

     This appraisal would include a very detailed description, precise measurements, and color determination for the resale value within the market price.

Resale Appraisal – Retail Replacement Cost

     Generally, this type is not preferred, especially on a pre-owned jewel.  

Resale Restricted Use Consultation Report

     If you are selling medium to low value items or a single item this may be the appropriate report style you would want.  Sometimes, you may only need a minimal amount of reporting to determine the fair asking price.  No digital images or measurements would be provided.

RESTRICTED USE REPORTS

     There are several types of reports in this category.  

Resale Restricted Use Consultation Report

     If you are selling several items of low value, you may use this report.  You may only need a “rough” estimate on their value to ask a fair market price.  This report will meet NAJA, AGS and ISA standards.  

Pre-purchase Restricted Use Consultation Report

     This report is useful for Internet purchases.  The appraiser provides a quality report with detailed explanations and craftsmanship analysis.

MARKET VALUE APPRAISALS

     There are several types of Market Value appraisals.  These are usually considered when establishing the market or retail value in the market place.  

Equitable Division – Dissolution of Marriage Appraisal

     This is used during dissolution of a marriage.  It provides both parties the value of the jewels.  It includes measurements, detailed descriptions, and images of the jewelry.  It uses local determined legal requirements.

Equitable Division – Estate Division Appraisal

     This provides detailed descriptions, measurements, images and valuation aid to an executor in the distribution of an estate. It is not to be used in determination of estate tax liability.

Forced Liquidation Appraisal

     This report includes detailed descriptions, measurements, and grades and determines the approximate value of money that may be expected.  The items must sell within 30 days of the exposure to the market.

Orderly Liquidation Appraisal

     This report is similar to the Resale – Market Value Appraisal.  The seller has no immediate ambition to sell the item and the item will probably not be exposed to the current market.

LAB REPORTS

Gem Identification Lab Report – Written or Verbal

     All available tests and techniques are utilized with this report to determine the gemstone validity.  

Quality Analysis/Grading Lab Report

     After gem identification has been completed, this test will determine the actual quality of the stone and mountings.

Authentication Lab Report

     Authentication requires advance testing and examination of the stone and mounting.  Opinions of different experts may be necessary.  This report is based on evidence available at the time of reporting.  It may be used as a warranty or guarantee.

Inventory Report

     This report will provide weight, digital images and exact measurements of the item.  This report would provide insurance companies with a date when filing a claim.

APPRAISALS FOR FEDERAL FUNCTION

     Appraisals prepared for the government, IRS, may require specific methodology and reporting.  There are several different type of reports used.

Estate Tax Liability Appraisal

     This report offers detailed descriptions, quality analysis, digital photos, and is prepared using the self-contained report format.  There are specific IRS regulations used in this report.

Gift Tax Liability Appraisal

     When non-cash items are made as gifts, the IRS needs a professional report to determine the specific amount that may be without a tax liability and may be the future basis for a “capital gains” determination.  

Casualty Loss for Income Tax Deduction Appraisal

     Under specific government guidelines, this appraisal can be used for loss of personal property at income tax time.  These appraisals are complex and time-consuming, but necessary to a casualty loss.  

Bankruptcy Appraisal

     This appraisal meets the Federal law requirements when filing bankruptcy.  Detailed descriptions, measurements, digital images are always used.