When you hear the terms, “having something appraised,” what do you think of? Do you think of someone taking a look at your grandmother’s old jewelry? Or maybe taking an old painting into a specialist and having it looked at? While neither of those situations is wrong, there’s so much more to appraisals than people realize and there are a number of situations where an appraisal is needed.
How do you know when you need personal property appraisals in Maryland? Here are some situations where appraisals are needed and why.
When you get to be an adult and start acquiring your own personal belongings, it’s important that they be documented and valued so that if something were to ever happen to you or your belongings, the value can be returned to you in one way or another through your insurance plan.
An appraiser will work with you in documenting the existence of your belongings, the condition they are in as well as the replacement value of your items should anything unforeseen happen. It is recommended that you have your personal property appraisals in Maryland done every five years or so.
Estate appraisals, in simple terms, are a monetary evaluation of your property. Estate appraisals are able to determine a few things: the fair market value of your estate, what your home could sell for on the market, and lastly, what you are to pay annually in taxes in order to meet the IRS requirements.
It is recommended that your estate appraisal be done by a professional appraiser because of their knowledge and experience in the field; however, informal appraisals can be done by your real estate agent. But keep in mind that if you’re in the market to purchase a property, most lenders or mortgage guarantors will require a professional appraisal to be done.
Equitable distribution appraisal
Equitable distribution is the equal division of assets between two or more parties (can be people or a business). You typically find yourself needed an equitable distribution appraisal when you are needing to settle a divorce or some sort of situation where there needs to be a fair distribution of property based on the fair market value of the items.
The appraiser will assign a monetary value (typically as a net value or marketable cash value) on each personal property item. The two parties, with the help of a third party, can then divide the property evenly.
Donation appraisals are recommended when a donor claims a charitable deduction of $1,000 and a donation appraisal is needed when a donor claims a charitable deduction of $5,000 or more. You typically find this situation when someone is looking to donate large personal property such as an estate or a vehicle like a car or a boat.
If you are looking to donate a larger item valuing at upwards of $1,000, it’s best to hire a professional appraiser to ensure that the donation can be deducted properly.
Pre-move appraisals are highly recommended because moving can be a major risk when it comes to your personal property, but having your personal items appraised can be helpful in two ways: first, it can validate the existence and fair replacement value of your possessions and second, it provides all of the necessary information needed in order to purchase additional insurance for your move in case any damage or loss does occur.