Formal Appraisal

What is a Formal Appraisal used for?

Estate Settlements: When a loved one passes it can be necessary to put a value on the personal property in their estate so that proper estate taxes can be paid to the CRA. Per federal regulations, a Fair Market Retail Value is needed.

Insurance: Such an Appraisal can be an invaluable way of protecting your possessions. Most homeowner’s policies only cover a certain minimal amount for household contents. At times of loss or damage, disputes may arise between the insurance company and the owner over the value of a particular item. An Appraisal by a competent appraiser reduces the likelihood of such a dispute. An Insurance Appraisal is completed using an item’s Replacement Value.

Divorces: In divorce proceedings where there is difficulty dividing common property, in cases involving the sale of certain property, or where parties are unclear as to a property’s value an Appraisal is sometimes requested or ordered to make such valuations. Such appraisals are usually completed using Fair Market Retail or Liquidation Value.

Division of Property: Most often connected to Estate Settlements, these valuations are not normally legally required, but assure all involved that property is being divided equitably. These are usually conducted using Fair Market Estate Sale, but depending on the circumstances may be completed using Replacement, Fair Market Retail Value or Liquidation Values.

Donations to Charity: Most donations to charity are tax deductible. For significant non-cash donations (i.e. those items worth $1K or more),the CRA requires an Appraisal confirming the value of the items donated. As with Estate Settlements, the CRA requires the appraisals be completed at Fair Market Used Goods Retail Value.

Sales/Purchases: A Fair Market Retail Value Appraisal may be requested or required when selling or purchasing an item of value to assure that the item is not mis-valued.

Formal Appraisal Fees

We charge strictly for time and incurred expenses for our appraisals, not based upon the value of the property appraised. Prior to beginning a formal appraisal, we will provide an estimate of the cost of services to be provided.

Please contact us so we may help you determine your specific appraisal needs.