Is it true that an appraiser must recognize distinct levels of trade in personal property, and each may have different comparable data?

The assertion that an appraiser must recognize distinct levels of trade in personal property is indeed true. In appraisal practice, particularly when valuing personal property, different segments of the market can exhibit varied characteristics, buyer behaviors, and pricing structures. This is crucial because comparable data—the sales, listings, and other transactional information used for establishing value—can significantly differ among these distinct levels.

For instance, the market for collectibles, such as rare coins or art, can vary widely between hobbyist collectors and serious investors, leading to different expectations and price points. An appraiser needs to acknowledge these differences to provide an accurate and fair valuation that reflects the specific market dynamics at play.

Different comparables may be relevant depending on the level of trade, as certain features or conditions may only be applicable within particular segments of the market. By recognizing these distinctions, the appraiser ensures the analysis reflects the true worth of the property in its appropriate context.