There are two basic types of appraisals.
Fair market value is “the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.” (IRS Guidelines) This value is researched for musical instruments that are to be re-sold, given to a non-profit institution, for estate evaluations, and for legal proceedings.
Insurance replacement value is “The highest price in terms of cash or other precisely revealed terms that would be required to replace a property with another of similar age, quality, origin, appearance, provenance and condition, within a reasonable length of time in an appropriate and relevant market. This definition includes various anticipated costs such as: purchase from an appropriate dealer; purchase at a well publicized public auction where comparable property is regularly sold; and engagement of a commissionaire or any other consultant.” (American Society of Appraisers definition). This value is researched for musical instruments that require an insurance appraisal or have to be replaced.
Fair market value is “the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.” (IRS Guidelines) This value is researched for musical instruments that are to be re-sold, given to a non-profit institution, for estate evaluations, and for legal proceedings.
Insurance replacement value is “The highest price in terms of cash or other precisely revealed terms that would be required to replace a property with another of similar age, quality, origin, appearance, provenance and condition, within a reasonable length of time in an appropriate and relevant market. This definition includes various anticipated costs such as: purchase from an appropriate dealer; purchase at a well publicized public auction where comparable property is regularly sold; and engagement of a commissionaire or any other consultant.” (American Society of Appraisers definition). This value is researched for musical instruments that require an insurance appraisal or have to be replaced.
