What role do appraisals play in the auction process?

Appraisals are crucial in the auction process as they provide an estimate of an item’s worth. This assessment helps both sellers and bidders understand the fair market value of items being auctioned. Having a precise appraisal allows sellers to set realistic expectations for their items and helps bidders make informed decisions on how much they are willing to bid. An accurate appraisal can also enhance the auctioneer's ability to attract potential buyers, as it establishes credibility and trust in the auction process.

In contrast, while appraisals can guide the starting bid, they do not legally determine it, which means options concerning legal requirements or suggesting that appraisals are unnecessary do not accurately reflect their importance in auctions. Thus, appraisals fundamentally shape the auction experience by ensuring that all parties have a clear understanding of value.