Textile & Clothing Appraisals
An appraisal is a legal document and should answer questions of value specific to the client’s particular needs. The argument for value must contain ample supporting information such as the proper cataloging of the subject property, a discussion the various markets and identify how the subject property ranks within the market.
All appraisal reports written by Deborah Miller Appraisals conform to the professional guidelines of:
- Uniform Standards of Professional Appraisal Practice (USPAP)
- The Code of Ethics of the American Society of Appraisers (ASA)
- The Internal Revenue Service (IRS)
There are many reasons one might need an appraisal, and different applications. Each report must specify its specific intended use, the users and particular type of value concluded.
Estate Appraisal: Fair Market Value
Estate Appraisals are required when an owner or a collector dies. The estate must be given a cost basis for federal tax purposes.
Non-cash Charitable Contribution Appraisal: Fair Market Value
Donation Appraisals are required by the Internal Revenue Service when a donation of one or more like items (i.e. a number of pieces of clothing) is worth more than $5,000.
Definition: “The price that a willing buyer would pay to a willing seller, neither being under any compulsion to buy or to sell and neither having reasonable knowledge of the relevant fact.” Sale must be to the ultimate consumer, or end user, and not a wholesale transaction.
Insurance Coverage Appraisal: Replacement Value
Scheduling designer clothing, luxury accessories and textiles of high monetary value helps avoid complications with the insurance company should future damages or losses occur. Museum’s loaning property to other institutions also need insurance when the loan property is en route.
Insurance Claim: Replacement Value
If damage or loss does occur, and items have not been specifically scheduled on an insurance policy, a specialist is needed to assess the pre-loss value of items for insurance claims, determining whether conservation or restoration is possible or advisable, and ultimately suggesting appropriate replacement sources. Replacement may be made with a new or a comparable property according to the particular policy.
Sales Potential: Marketable Cash Value
The anticipated net proceeds (cash in hand) that would be yielded form the orderly sale of a property once all costs of the sale were subtracted.