As a Professional Organizer and Personal Property Appraiser, I often help clients understand the best resources for valuing items in their homes.
Navigating appraisals and auctions can be intimidating and overwhelming.
Maybe you’ve inherited books, coins, or artwork you no longer want or have space to live with. I frequently work with clients who are downsizing and need to sell items. My first approach is to identify valuable items and cross-reference them with the items a client is willing to sell or give to family or friends (now or later). Sometimes, we don’t know the value of what we’re examining, so bringing in someone who knows more is an excellent idea. I’ve built relationships with local auction and estate sale companies specializing in specific item categories. I find that people often think they need an appraisal when they want to know how much something is worth. Both appraisals and auction companies can be excellent resources for this, but knowing when to appraise or when to auction can be confusing. This post will explain the process in simple terms.
💫 When you need an Appraisal
Over the past several years, I’ve had many clients who need help navigating the assessment of their collections. This is why I became a personal property appraiser. I aim to spot valuable items and alert my clients while also helping them find the best resources for selling. The first and most important thing to understand about appraisals is why you need one. There are three categories for appraisal. Each will help the appraiser determine what kind of valuation to apply to the appraised objects. The first appraisal categories is for insurance value, either before a policy is applied to or after a damage claim. The second category is donation appraisals for tax deduction and they require Fair Market Value. The IRS requires singular items over $5000 as well as collections that fall under other guidelines to be accompanied by a qualified appraisal. Finally, divorce or estate disbursement of assets often require valuations.
Each appraisal requires a specific approach to determine the value, which is accessed on different circumstances. It gets complicated! Before you ask for an appraisal, know that a qualified and accredited appraiser will first ask you why you need it. Becoming accredited is ‘governed’ by the National Appraisal Foundation, which sets the industry’s educational, ethical, and professional standards. Several appraisal trade organizations exist to implement these qualifications. I am a qualified International Society of Appraisers (ISA) member. If you find an appraiser who says they are licensed, ask questions. There is no such process of “Licensing” appraisers in the USA. Many excellent appraisers have been practicing since before these standards were implemented in 1989, and they chose not to maintain these standards. You may not need a qualified appraiser. This is when working with an auction company might be worth considering.
💫Selling Items at Auction
Some auction companies specialize in specific items; others are generalists. Some sell antique and high-end items, others sell mid-tier ‘decorator’ items. Many auction companies and estate sales companies are happy to look at photos of items via email. They may also offer free consultation to see if you have items of interest to their clientele. Since COVID, most auctions are posted/cleared through online sites like Live Auctioneer reaching local and international clients. Ask the auction company who their clients are (local, specific types of collectors, etc). Look at their online presence with these clearing sites. You can set up a free profile before your objects go to market so that you can follow the process.
Understanding the buyer’s and seller’s premiums is essential before you agree to work with any auction company. It’s also important to understand the process of setting minimums for each object.
This way, if a specific price is not realized, the item will pass (not sell at a price lower than you desire). Not all auction companies recommend or offer this, so discussing their procedures is essential. Most auction companies do not disclose this on their website, so making some calls and emails to discuss your client’s details will be necessary. Have photos ready, look at past auctions to see what sold or didn’t, and see if items are similar to what you want to sell.
💫Collectibles
Coins will always have a minimum of scrap metal value. This doesn’t mean you should sell them at a pawn shop! Books can be tricky, but if you know a few things to look for, you can narrow your selection to items likely to interest book resellers. Artwork, fine crafts, antique, vintage furniture or clothing, glassware or cut crystal, paperweights, shells, objects from global travels, and more. There are many reasons that people collect. A collection might start with an object or two; purchased, gifted, or inherited. It may start as a way to memorialize a special occasion. Many people don’t consider themselves collectors because they don’t equate monetary value with their things. There are all kinds of collectors and many reasons for collecting. Once we have identified what we love and are collecting, it’s helpful to write down why and how the collection came to be and document the history of objects (provenance matters).
💫Decorative Objects/Decorative Arts
We live with decorative objects; lamps, baskets, decorative accessories, sculptures, glassware, silver, ceramics, and more. I recently worked with an specialist to help a client with a fine southern antique silver collection. With the pieces accessed by a specialist auction company, they realized thousands more than they would have received with a smaller (generalist) company. It pays to seek experts and get second opinions. It’s also an excellent opportunity to learn from them!
💫Artwork
When looking for an auction house specializing in artworks, it is essential to find the right expertise. Those specializing in specific artists, styles, periods, regions, etc. I have worked with several auction houses in South Carolina, depending on the client’s needs and collections. I always invite the best auction company for the most prominent work in a collection to look (via emailed photos and/or in-person) and make first choices. With this “top-down” approach I learn from the prominent auction companies what work they want, then find alternate opportunities for the remaining items. Art can be expensive to crate and ship, but that may be the best option for some artwork if it will command a much higher price. This is important to consider before agreeing to work with anyone specifically. Before signing with any auction co, it’s helpful to know if a reputable and appropriate company closer to you can represent your assets and reach the market needed to sell goods at top prices.
I hope this short post is helpful and provides more information about what, why, and when to seek out an Appraisal or Auction Company. Please leave a comment below if I can answer any more specific questions.
