I just want to know “What’s it worth” is the most common response when a person calls to make an appointment for an appraisal and I ask what is the purpose of the appraisal. One of the definitions of “Worth” is value. This is really what the caller wants to know. I will repeat the question “How are you planning to use this appraisal?” Most of the time I still get the answer “I just want to know if it’s worth anything or not.”
The dictionary defines “worth” as “value”. There are different kinds of values. There is a resale value, replacement value, market value, a pre-move insurance value, and sentimental value. Therefore, the purpose of the appraisal – how it is going to be used determines the market the appraiser is going to use to estimate value. Is it going to be a liquidation value and how soon will it have to be liquidated? Is it fair market value – willing buyer, willing seller under no compulsion to buy or sell? Is it insurance replacement value?
With downsizing and deaths many people are inheriting from parents and grandparents property that in today’s market has either a low or minimum value or is still of value and worthy of an appraisal before deciding to keep or sell it. This can only be determined by an honest discussion with the appraiser of the purpose of the appraisal. If you want to know if it’s worth keeping or if you want to sell it, say so. An appraiser can assist and advise you as part of our job is to keep up with the current market in their area. Keep in mind certain property will sell better and markets will differ in different parts of the country.