Definition
An Evaluator is an independent expert who specializes in appraising the value of property that is infrequently traded on the market. Evaluators are essential in determining the worth of unique or rare assets such as antiques, estates, or rarely traded stocks and bonds. Their expertise ensures that these valuations are as accurate and fair as possible.
Examples
- Antiques Evaluation: An evaluator may be hired to appraise the value of a collection of antique furniture and collectibles in an estate.
- Rare Stocks or Bonds: An evaluator might assess the value of stocks or bonds that are not frequently traded, such as shares of a private company.
- Art Valuation: An evaluator can determine the current market value of rare artworks for insurance or sale purposes.
Frequently Asked Questions (FAQs)
What qualifications should an evaluator have?
Evaluators typically have specialized education and extensive experience in their field of appraisal. Professional certifications like those from the American Society of Appraisers (ASA) or the International Society of Appraisers (ISA) often denote credible expertise.
How do evaluators determine the value of rarely traded assets?
Evaluators use a combination of market research, comparative analysis, and professional judgment to estimate the value of rare assets. They may consider factors like historical prices, scarcity, condition, and market demand.
Can an evaluator’s appraisal be challenged?
Yes, evaluations can be disputed if there is substantial evidence suggesting that the appraisal is inaccurate. This often necessitates a second opinion or a reevaluation from another expert.
How is the fee for an evaluator determined?
Fees for evaluation services vary; they can be a flat fee, an hourly rate, or sometimes a percentage of the appraised value, depending on the complexity and type of property being appraised.
Related Terms with Definitions
- Appraiser: A general term for anyone who assesses the value of real or personal property. An appraiser can specialize in various fields, including real estate, personal property (e.g., antiques, jewelry), and business valuations.
- Valuation: The analytical process of determining the current (or projected) worth of an asset or a company.
- Market Value: The estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller.
- Assessment: The determination of the value of property for the purpose of taxation.
Online References
- American Society of Appraisers (ASA)
- International Society of Appraisers (ISA)
- Investopedia - Understanding Valuation
Suggested Books for Further Studies
- “Valuing a Business: The Analysis and Appraisal of Closely Held Companies” by Shannon P. Pratt
- “Art as an Asset: Policies and Practice” by Nannette V. Maciejunes and Lynne McChristian
- “The Complete Antique Collector: A Comprehensive Guide” by Barbara S. Cohen
- “Financial Valuation: Applications and Models” by James R. Hitchner
Fundamentals of Evaluation: Business Law Basics Quiz
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