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SKILL OF APPRAISAL
Appraisal systematic review, performance appraisals, appraisal strengths
In the field of buying and selling business one should be well verse
in the skills of appraisal. The real value of asset is known only at the
time of sale. This important principle of quotation was made by advice
Berg, an attorney general residing in Lebanon. It is true that the real
value of asset known at sale because both frame minds of buyer and seller
correlate at the time of sale only. The assets basically will be in different
forms like building, real estate and intellectual property. The value
of asset charges rapidly so every seller aiming to quote higher rates
while buyer likes to purchase with low quotation.
The current trend of global market experiences one of the worst financial
crisis in the world. The rate of gold sky rocketed, while price for crude
oil tipped down low. The crude oil group of companies had started winding
up of production due to low pricing. Every buyer and seller wants their
appraiser to be user friendly. It will depend upon the appraiser for smooth
transaction of sale. However the buyer gets advantage if appraiser quotes
less since the buyer can manipulate in tax aversion methods. Apart from
all sale procedure the buyer and seller should have required documents.
The appraiser neglects any illegal documents or wrong information’s give
to them. The appraiser after all preliminary process agrees for the sale.
The buyer and seller should select good qualified appraiser. If you don’t
get qualified appraiser then the buyer or seller end up with huge loss.
There was one incident took place in USA. It was referred as Frederic
Kohler case. The Frederic Kohler was a big business magnet suddenly demised,
leaving all asset worth around $47 millions. The estimation of asset value
was calculated by experienced appraiser, where he quoted $47 million,
but where as according to government agency they quoted $145 million dollars.
The government agency IRS needed $54 million in estate tax plus and $11
million penalty. Later court procedures ordered the judgment was given
in favor of experienced appraiser where he quoted $47 million dollars.
By this example one can easily understand the importance of appraiser
work. The court also warned of government appraiser where he projected
wrong details and he too accepted the mistake of not appraising correctly.
Likewise many similar cases in court experienced.
The buyer and seller should select qualified appraiser in order to avoid
major loss. Instead a buyer and seller can opt for gift tax where considerable
amount saved by allowing to quote the land lesser value. If every appraiser
works according to ethic moral, then the buyer and seller will feel happy.
No one should think and act illegally for sake of money.
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