In this instructional video, the speaker explains the three main types of property appraisals—insurance (retail replacement) appraisal, fair market value appraisal, and liquidation value appraisal—detailing how each is calculated, typical dollar ranges, and the situations in which each is appropriate (covering loss or theft, tax‑deductible donation, or a quick cash sale). The presenter emphasizes that the insurance appraisal yields the highest value, the fair market appraisal sits in the middle, and the liquidation appraisal is the lowest. He advises viewers to obtain appraisals from reputable professionals affiliated with major appraisal organizations—the Appraisers Association of America (AAA), the International Society of Appraisers (ISA), or the American Society of Appraisers (ASA)—and to clearly communicate the intended purpose of the appraisal to ensure the correct type is provided. The video ends with a brief call to subscribe.
Chapters
So today we're going to go over everything there is to know about appraisals. So first of all, there's 3 main types of appraisals that you'll probably see. Number one is the insurance appraisal, also known as the retail replacement value. So when you see this appraisal, that's going to be the highest number. The reason that it's the highest is because that happens when you're covering for insurance for like loss, damage, or theft. So that means that when I go to the store, I'm going to buy that, the highest number, because I want it right now to replace my item. $5,500 would be the cost of this item if it was a retail replacement appraisal. The second type appraisal is the fair market appraisal. The fair market appraisal is the one that's done if something is going to be donated or if you're going to do something for tax purposes. So that is when this item is going to be somewhere around $2,000. That's when a willing buyer and a willing seller come together to make a transaction. Similar to an auction number. That would be the number for the current market value or the fair market value. Now, the final number is going to be the lowest number. This is the liquidation value. That is the number that if you're looking to sell this right now, you want the cash, someone's going to come to your house or you're going to sell it quickly, that is the liquidation value. That number for a piece like this could be as little as $1,000 or $1,200. Now, just to make sure you understand, the top number, the insurance appraisal, which is what a lot of times you'll have in your house, is going to be $5,500. That's not the number you're going to receive if you're going to sell it quick for cash. That number is going to be the liquidation appraisal number, and that number is going to be right around $1,000 or $1,200. Now, the other thing you need to do if you're going to have an appraisal done It's very good to make sure it's by a reputable person. Hopefully, they are associated with the major appraisal associations. The three major associations is the AAA, or the Appraisers Association of America. That's number one. The second one is the International Society of Appraisers, or the ISA. The third one is the American Society of Appraisers, or the ASA. Make sure when you're calling these appraisers that you let them know what you need the appraisal for to make sure that they do the right appraisal for you. Please subscribe so you don't miss any future See you in the next video. See you in the next video.
