Authorized Appraisal vs. Valuation of Personal Property: Which do I need??

Recently, I have been receiving a number of calls and emails from prospective clients, asking for an “appraisal” on Mom’s China, Crystal, Sterling….you get the idea!  In most of these cases, these individuals are truly seeking the resale value of the items, which is different than an Authorized Appraisal.  How do you know which you may need?

When determining the value of personal property—such as fine art, antiques, silver, or collectibles—it’s important to understand the difference between an authorized appraisal and a valuation. They may sound similar, but they serve very different purposes.

So, what’s the difference? An Authorized Appraisal is a formal report prepared by a qualified appraiser that follows professional standards (such as USPAP). It’s detailed, legally defensible, and used for official purposes. Authorized Appraisals are required for estate settlements, divorce proceedings, IRS reporting (charitable donations, gifts, estate taxes), insurance claims or coverage.  And yes, you can get a Fair Market Value Authorized Appraisal on things you own – for example, if you are thinking of gifting items to family and want to be aware of value. An Authorized Appraisal conforms to professional standards and follows strict industry guidelines, ensuring the work is unbiased, thoroughly researched, providing the appropriate market and cost approach based on the type of appraisal, and is well-documented. It includes detailed descriptions, item condition, provenance, comparable market data, and a signed certification by the Authorized Appraiser. These requirements are in place as Authorized Appraisals are often submitted to courts, the IRS, insurance companies, or attorneys. An Authorized Appraisal carries legal weight and is accepted in official matters.

A Valuation of Personal Property is a general estimate of value. This might be a ballpark figure based on market trends or a verbal opinion. It’s informal and not meant for legal or financial filings.  A Valuation is useful when you simply want to know what something might sell for or get a rough idea of worth.  This may also be used for downsizing, sales and gifting as well.  A Valuation is not bound by formal standards. It may rely on the knowledge of the individual performing the valuation or quick market checks, and may  be a simple summary or verbal opinion, with limited details and no formal documentation.  Additionally, a Valuation is not legally valid for official use. It’s informational only and cannot be used for tax or legal purposes.

Which Do You Need

If you’re dealing with a legal, tax, or insurance issue—or need documentation for a significant financial decision—you need an authorized appraisal.

If you’re just curious or making informal plans, a basic valuation may be all that’s necessary.