How is the value of items affected when they are appraised?

When items undergo appraisal, the value determined reflects current fair market conditions. Fair market value is defined as the price that a willing buyer and a willing seller would agree upon, assuming both parties are informed and not under duress. This approach to valuing items takes into account factors such as current demand, comparable sales, and economic conditions, providing a more realistic and applicable value for the item at the time of appraisal.

In contrast, options that suggest the value automatically increases, is based on retail price, or relies on historical prices do not accurately encapsulate the appraisal process. Appraisals do not guarantee an increase in value; items may decrease in value due to changes in market conditions. Additionally, while retail prices can influence perceived value, they do not solely determine fair market value, which can vary widely depending on various factors, including item condition and market trends at the time of appraisal. Historical prices may provide context but do not reflect current market conditions and thus do not accurately represent the current value for appraisal purposes.