Broker opinion of value
On my last cruise to Alaska as an appraiser of art, my friend Tamara Port Shopping Ambassador ships, related the following story: a passenger buys a jewel in Skagway store for about $ 10,000. The next day, the passenger has a serious case of buyers remorse and sought to return the jewelry on the basis that the article has been distorted and too expensive. To prove the item was expensive, she took the items to a second request from jewelry store to the grocer to evaluate the product. The assessment offered was far from what she paid for the item. In fact, the second trader told her she had overpaid, and that she should return the product and then come back, because he could not offer him an object of superior quality at a lower price. Broker opinion of value
I am sure this is also transparent for you as it was for me : the second trader was trying to make a sale to the detriment of the first shopkeeper. This sales tactic could work is rooted in ignorance of the difference between passengers evaluation and opinion of value. The ignorance of this difference has clients from the cost of thousands of dollars in lost mining insurance claims and missed opportunities. Know the difference between evaluation and opinion of the value will be to your advantage.
An opinion is an opinion of value offered on the basis of experience and expertise. These opinions may or may not be valid, depending on qualifications and ethics of the person offering the opinion. Those proposing such opinions are not required to be independent, as impartial or objective. They can, and often do, have conflicts of interest and hidden agendas. Notice the value has no requirements for documentation or evidence. Those offering an opinion of value are not held to the same legal and ethical requirements as a certified appraiser. Let’s say you took a Picasso etching an art dealer who gave you his opinion of value, called the opinion an assessment and then offered to buy paint for the evaluated price. The dealer would have offered no evidence to support its request for the value, and Cleary had a conflict of interest. His opinion of value is worthless. Broker opinion of value
evidence value offered in an evaluation, on the other hand, has been studied and is offered to support the claimed value. In most cases, the evidence is offered in the form of comparable sales; that is, making articles like yours have sold recently in your market. Moreover, a proper assessment follows the format of the Uniform Standards of Professional Appraisal Practice (USPAP) on which was authorized by Congress as the source of appraisal standards and appraiser qualifications. USPAP is generally accepted by the courts and by the IRS. An evaluation of USPAP compliant clarifies the details of the assessment, the assessor, the intention of the report, the assumptions, boundary conditions, and all evidence supporting the conclusion. When done, the evaluator must sign and certify the report. Such a report will withstand legal scrutiny and IRS and offered value can be trusted.
Now that I’ve established what is evaluated and is not, let me throw a spanner in the works. If you called five experts to assess the same item, you can get five different appraisal values for the item. How is this possible? The appraiser must-certain assumptions and adjustments to arrive at the value of your article. Unless proof of sale can be found for an article exactly like yours, adjustments should be made to compensate for differences in age and condition. Make adjustments is more art than science, and ultimately depends on the competence and experience of the assessor. Furthermore, the intention of an evaluation will affect the value. Estimates for replacement insurance, estate settlement, the fair market value and cash value will all be given different numbers. If the value of your TPP is important for estate, tax, divorce, or other legal considerations, please do not rely on an opinion of the value to make your request. Call a certified personal property appraiser. Broker opinion of value
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