What is the difference between a fair market value appraisal and an insurance appraisal?
Okay, this is a MOUTHFUL. So here goes. Fair market value is defined as: the amount that an item would change hands for, in its current condition (most often this is used), in its most common market (pawn shops, estate sales, auctions-because it is most often a used item) with neither the buyer or seller being under pressure to buy or sell (no one needs money right this instant) and both being aware of the relevant facts concerning the item (the seller knows what the item is worth as does the buyer). The sale is assumed to be to the ultimate consumer (the person who will use the item-not a reseller). Fair market value is used to determine the amount of estate taxes owed to the IRS. Sometimes courts ask for fair market value appraisals for property disputes like those that occur with divorce. Insurance appraisals are written to reflect (in most cases) what a new item would cost. Thus the two types of appraisals can reflect very different dollar amounts for the same item. When all this i
Related Questions
- I am thinking of selling a diamond ring in the newspaper. Does that mean I need a Fair Market Value appraisal?
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- What is the difference between a fair market value appraisal and an insurance appraisal?
