What is an Appraisal? A written document describing the vehicle and determining the dollar value by an impartial knowledgeable specialist.
How often should I get an appraisal? As markets and values fluctuate an appraisal should be updated every three years. Check with your underwriter for their particular requirements.
Who should I get to do my appraisal? It is very important to hire the right appraiser for your particular vehicle. Check with you insurance underwriters for approved appraisers. You can also check with other collectors for references. The appraiser you hire should be familiar with your class of vehicle.
How long should it take to complete an appraisal? The average inspection of the vehicle including pictures should take approximately one hour. If it is a custom or modified vehicle it may take longer to gather the documentation from the client. Once the inspection has been done the finished document should be completed within three to ten days.
What information should I have for the appraiser? Previous appraisals if available, documentation of the history and specifications of the vehicle, build sheets, titles, etc. Documentation of restoration costs and purchase price of the vehicle.
How do I prepare for the appraisal? Once you have booked an appointment with your appraiser you should prepare your documentation for his review. Copies of the documents are helpful for the appraiser. The documentation authenticates the vehicle and in some cases increases its value. The vehicle should be clean and tidy in all areas. The appraiser's intent is to highlight your vehicle in the best possible light. I advise my clients to prepare their vehicle as if it was being entered in a car show.
What should an appraisal include? The document should be seven to ten pages and include all vehicle information, a breakdown of the VIN number, list of options, condition of vehicle components, a minimum of six color pictures, the method of valuation, summary of facts and pertinent information, value expressed in Canadian dollars and reference material. The document should also include the purpose for the appraisal.
Actual Cash Value: The value of property equal to the original cost, less depreciation.
Agreed Value: Amount agreed on by the owner and insurer.
Build Cost: The cost to build the vehicle. This should be documented and substantiated with receipts for expenses.
Comparable Sales: Similar or like items sold within a reasonable time frame of the appraisal
Fair Market Value: Defined as the price at which the property would change hands between a willing buyer and a willing seller neither being under the compulsion to buy or sell; with both parties having reasonable knowledge of the relevant facts.
Replacement Cost: The cost of replacing the property when it is either loss or destroyed.