ANTIQUE APPRAISAL: ESTATE APPRAISAL LIQUIDATION

When you have an interest in an estate appraisal liquidation it is best to contact an accredited appraiser. In reality, any person can claim to be a personal property appraiser and command payment for performing appraisals. In fact, the individual conducting the estate sale for you, who may not be an accredited appraiser, may also offer to provide an appraisal service. The risk of receiving an appraisal from the estate liquidator is the values will most likely mirror the liquidation market. However, if you are interested in the actual Fair Market Value to determine if you want to liquidate then your items will be undervalued. Estate appraisal liquidation will value your items based on the understanding that you do not have the luxury of time to sell at a fairer price.

The term estate typically relates to some requirement by the Internal Revenue Service. The IRS requires that Fair Market Value be used for all estate tax purposes. The IRS defines Fair Market Value as the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts. If with the term, estate appraisal liquidation, the need is outside a tax filing but for the liquidation of assets then several different values can be utilized, all based on the fact that the seller indeed has varying degrees of compulsion to sell.

If the items must be liquidated but in an orderly manner, generally advertised, with reasonable time constraints then the estate appraisal liquidation report would state an Orderly Liquidation Value. If there is great urgency to liquidate assets the report will state the Forced Liquidation Value. This value will reflect the most probable price in terms of cash, or other revealed terms, for which the property would change hands if sold immediately, without regard to relevant market place. Obviously, the forced liquidation value will be lower as in selling a refrigerator to an Eskimo.          

These degrees of liquidation are typically used by financial institutions when determining the collateral value of assets. As we said early the IRS only recognizes Fair Market Value (FMV) pertaining to estates, so if you are considering selling the estate assets with no requirement to file, and you have the luxury of time, a liquidation value is not in your best interest. Use FMV to make decisions of retaining, distributing, or selling. You can always sell at a lower price to the highest offer. On the other hand, if you receive an estate appraisal liquidation and must not sell under duress then you do not have an accurate value.

If you have any questions or concerns contact the accredited appraisers at EmailAppraisals.com for knowledgeable, free advice.