Pro appraisals can be priceless

The antique watch given to you by your father is to be handed down to your grandchildren, and you’re sure it only has sentimental value. Or perhaps you’ve inherited the contents of a relative’s estate and plan to donate the items to charity because you are sure there’s nothing of worth there.

While many things you own likely don’t have significant cash value, there are a number of reasons why you might need an appraisal of certain items:

•To determine the value of an estate to probate a will and divide property among the heirs.

•For replacement value insurance coverage (you won’t be able to make a claim unless the item’s value has been determined).

•Because it’s required by the IRS for charitable donation deductions.

•To determine whether an item has only sentimental value and can be used every day, or if it needs to be kept in a bank box.

•To establish a value before a sale, division of property due to divorce, or liquidation in case of bankruptcy.

•To establish a basis for future depreciation.

•To document the age and origin of a piece that is to stay in the family.

There are several types of appraisals:

•An auction house appraisal is likely to put a lower value on an item than a full formal appraisal because the value is based on the bids an item is likely to get, not necessarily the value.

•A verbal appraisal is for those who are only curious about an item’s value or authenticity.

•A formal appraisal, which details on paper the item’s value and description, is given by a certified appraiser.

•An appraiser should be a certified and licensed member of a professional organization, such as International Society of Appraisers, the American Society of Appraisers or the Appraisers Association of America Inc.

•Steer clear of an appraiser who bases his fee on the value of the item, or who expresses interest in buying the item. In both cases you are likely to get skewed values.

•And unless you know your appraiser well, stay with the item during the appraisal process. It’s too easy to swap one gem for another in a ring, for example.