What types of appraisals are there?
There are several different types of appraisals that can be done for an object: Tax Purposes: Appraisals for tax purposes must specify “fair market value.” In legal terms this is defined as “the price at which material changes hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell, and both having reasonable knowledge of the relevant facts.” The appraiser should be made aware that the appraisal is for tax benefits and a fee should be paid for this service. Insurance or replacement value: This type of appraisal can be done to establish a value for insurance coverage. Probate Value: This form of appraisal is done to determine the taxes to be paid on an estate.
