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Wayne Jordan Auctions & Appraisals
2010
An Executors Guide toEstate Appraisals inRoanoke, VA
How to Get Reliable Values Without Spending A Fortune
Wayne Jordan, CES, CAGA
Executor’s Guide to Estate Appraisals in Roanoke, V
A
Executors faced with having an estate appraised in Roanoke and Southwestern Virginia soondiscover that estate personal property appraisers are difficult to locate. A quick glance at the
“appraisers” section of the Yellow Pages will reveal
three types of listings: 1. Real estateappraisers 2. Specialty appraisers (for art, jewelry and antiques) and 3. Retailers,
who aren’t
really appraisers at all, but offer themselves as such so they can purchase your estate propertyat a discount. The challenge for an executor is to identify estate property that might bevaluable without paying high hourly rates to a specialty appraiser. Too often, the executor findsout that there are no items of significant value in the estate and
she has wasted the estate’s
money.
Most Estates Have Few Items of Real Value
Let's face it: few items in an estate are worth much. Ninety-five percent of an estate consistsof consumer goods that can be purchased new anywhere and sell for pennies on the dollar at athrift store. The remaining five percent of an estate is split between memorabilia and a few"special items".
Perceived Value Can Get Executors into Trouble
It's these "special items" that can get an executor (or an appraiser) into trouble. For example,the Commemorative Coin Set that the TV said was "guaranteed to go up in value". Or theantique desk that was purchased cheap at an auction but the auctioneer said "was worththousands". When the estate is liquidated, and the "special items" don't bring much money,the heirs feel cheated. They want answers. And they start making accusations in the
executor’s
direction.
Zero In on Valuable Items without Spending a Lot of Money
In the commercial real estate field, investors will often have an appraiser perform a preliminaryappraisal survey report. Such a report provides an investor with a broad view of the investmentwithout the supporting sales data required by a detailed appraisal. With such information, an
investor can get the “big picture” and determine if a more detailed
appraisal is justified.Recently, estate personal property appraisers
have adapted real estate’s
preliminary appraisalsurvey report to the needs of estate executors; it is called an Inventory and Valuation SurveyReport.
An Inventory and Valuation Survey Report is the Answer
The Inventory and Valuation Survey Report allows the executor to start with a general estateassessment before hiring a specialty appraiser. The Inventory and Valuation survey Report liststhe estate property by group, notes items of potential high value, and gives a value range foreach group and a total value range for the estate. References are given for value conclusions.Comparable sales data, historical profiles, and provenance are not established, eliminating thehigh cost of research for a complete appraisal. If no "potential high value" items are found, thereport can stand as-is. If high value items are found, further investigation can be done if requested.
The Format for the Inventory and Valuation Survey Report is as follows:
State the circumstances of the report (who, where, when, why)
General description of the estate
Narrative description of property by group (furniture, vehicles, etc.)
Probate Inventory form filled out where applicable
Identification of potential high-value items
Summary of value range
Credentials and limitations
Photos if requested
What to do if Valuable Items are found
In some cases, an item of value is discovered and a complete appraisal is justified. When that isthe case, a specialty appraiser should be contacted for a full appraisal of the item. In a fullappraisal, the item is inspected, photographed, and researched. The report provided will
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