Fair Market Value Appraisal
Fair market value appraisal refers to the price that a jewelry item would sell for on the open market, given that both the buyer and seller have knowledge of the relevant facts about the item and are acting on their own free will. In the context of jewelry appraisal, a fair market value appraisal considers various factors such as the quality and rarity of the jewelry, the current market trends, and the condition of the piece.
To determine the fair market value of a jewelry item, an appraiser would typically examine the item closely, taking note of its physical and aesthetic characteristics, and would also consider any relevant documentation or history associated with the piece. They would then research the current market trends and comparable sales and use this information to arrive at a fair market value estimate.
It is important to note that fair market value may differ from other types of appraisals, such as insurance or estate appraisals, which may place different emphasis on factors.
Do you need an estate jewelry appraisal report for IRS filing or court?
If the estate is subject to federal estate tax, a detailed report will be required to establish the fair market value for each item. Estate appraisals subject to IRS scrutiny entail additional market research for significant jewelry items. These appraisals will list the documented sales prices of comparable items (e.g. researched sales at auction). When applicable, these prices are followed by an analysis of the similarities and differences between the item in question and the comparable item(s) assisting the reader (e.g. IRS agent) to understand the fair market value conclusion in the report. Naturally, estate appraisals require more time and research and are billed at our hourly rate or we can quote a fixed price on the entire assignment.
Is the issue one of equitable distribution? Would you still need a jewelry appraisal report?
Often, estates and trusts are not subject to federal estate tax, but a report documenting every item is still desirable. For example, these less formal reports are useful to help with the equitable distribution of the estate/trust assets. Often these appraisals require less detailed market research and consume less time. While the same hourly rate applies, the costs are consequently reduced.
Or, do you simply need consultation to help identify and establish a market value for the items?
Finally, in those situations wherein no printed report is required but information to assist with the equitable distribution of the assets is needed, we provide a consultation option. The same hourly rate applies (there is a one hour minimum), however, because no report is produced and no photos are taken, the amount of billable time can be significantly reduced.
