Umm...interesting question. Yes and no. The report would be useful for replacement cost in the future or here and now. BUT - my biz is different in that I can''t call up Johnny the diamond dealer and find something nearly the same in fairly short order. So, people have asked to provide a replacement cost estimate. For example - say someone was to have a loss of an object that isn''t being made today. The object is somewhat unique. It may take a long time & substantial expense in hunting another one down. I may know that another is for sale in a much higher priced arena. That person will have to pay more for the object than what I sold it for. Again, pricing in my biz is much more subjective.Date: 12/31/2004 2:28:24 PM
Author: denverappraiser
F&I,
With paintings, would you consider it useful for a seller to supply a document accompanying a sale that describes it''s value as something other than the sales price using the same market and on the same date as the sale? Under what circumstances would this report be useful? Would you put more credibility on this type of report if it was supplied by someone other than the seller where all of their other qualifications are equal?
Neil
That said, I would find value in an appraisal done by the jewelery store for more than the sales receipt. In fact, I discuss this with my insurance company anytime I submit a jewelry piece for scheduling. I have venues other than normal retail to find pieces. I discuss this fact that the price I pay for an object will not insure me that same object at the same price with my insurance agent. He accepts the appraisal for over the *actual* cost. For example, say X setting costs XXX retail. The jeweler gave preferred pricing. Say I loose the setting. The jeweler no longer carries the same designer setting. I have to go to another source to replace it. I may have to pay retail. Perhaps not; but, that possibility does exist. Wouldn''t it be prudent to insure it for the list price?
As far as putting more credibility on the "independent" appraisal, I definitely see the point. My biz can be different in that the person selling the item may have far more greater knowledge in their specialty than an independent. So, the "equal qualification" part would be very hard to define.
I agree that I find value in an independent appraisal; but, as I stated, I don''t think they have to be mutually exclusive of one another. I know that an indep. can be more straight forward; but, I don''t think the jewelry store can provide an appropriate appraisal.