Personal Property Appraisals Performed
According to USPAP, there are two basic types of appraisal reports. There is the Summary Appraisal report and the Self-Contained Appraisal. Many online Internet dictionaries vary in their comparing and contrasting the differences between these two types of appraisals. To put it succinctly, the gist of the definitions is as follows: A Self-Contained Appraisal contains “extensive detail” significant to the objects being appraised, whereas a Summary Appraisal contains “moderate detail” significant to the objects being appraised. A “Summary Appraisal” is the most widely used appraisal report format.
The three standard Approaches of Value the appraiser may use in either one of the two appraisals mentioned above are: (1) Sales Comparison Approach; (2) Cost Approach; or (3) Income Approach. The “Sales Comparison Approach” is used in the vast majority of personal property appraisal reports.
The Types of Values used in each appraisal report may include Fair Market Value, Market Value, Replacement Value Comparable, and Liquidation Value. “Fair Market Value” is used in the majority of appraisal reports.
Once our client explains their appraisal needs to us, the assigned appraiser will determine the type of appraisal report format. The appraiser then chooses the correct Approach to Value and also the appropriate Type of Value for the specified appraisal report.