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 more clients who need help navigating the reassessment of their collections. This is why I became a personal property appraiser. I want to be able to spot valuable items and alert my clients to them while also helping them find the best resources for selling goods. The first and perhaps most important thing to understand about appraisals is why you might need one. Generally speaking, there are three main categories for appraisal, and each will help the appraiser determine what kind of valuation to apply to the appraised objects. The three reasons to have items appraised are for insurance value (before an insurance policy is applied to an item or collection or after a damage claim), donation appraisals for tax deduction require Fair Market Value (IRS requires singular items over $5000 as well as collections that fall under other guidelines) to be accompanied by a qualified appraisal, and finally, divorce or estate disbursement of assets often require valuations.
Each type of appraisal requires a specific approach to determine the value, which is accessed based on different accompanying circumstances. It gets complicated, so before you ask for an appraisal, know that a qualified and accredited appraiser will likely 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, and many excellent appraisers have been practicing for decades (before these governing standards were implemented in 1989), and they have chosen not to maintain these standards. You may not need a qualified appraiser; sometimes, you don’t need to pay for an appraisal! 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 products, and others sell mid-tier ‘decorator’ items. Many auction companies and estate sales companies are happy to look at photos of items via email or even do a free consultation walk-through to see if there are items of interest to their clientele. Especially since COVID, most auctions are posted/cleared through large online sites like Live Auctioneer and reach local and international clients. Ask the auction company who their clients are (local, specific types of collectors, etc) and 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 so that if a specific price is not realized at auction, 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. Please be ready to send photos, look at their past auctions to see what sold or didn’t sell, and see if they are similar to what your clients need to sell.
💫Collectibles
Coins will always have at least scrap metal value, but that 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 or vintage furniture or clothing, glassware or cut crystal, paperweights, shells, objects from global travels, and more. There are so many reasons that people collect things. A collection might start with an object or two purchased, gifted, or inherited. It may start as a way to memorialize a special occasion. These are all excellent reasons to collect. Many people don’t consider themselves collectors until they equate monetary value with their things, but that’s not true. There are all kinds of collectors. 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.
💫Decorative Objects/Decorative Arts
These kinds of objects we live with daily, including lamps, baskets, decorative accessories, sculptures, glassware, silver, ceramics, and more. I recentlyworked with an expert to help a client with a lovely fine antique (southern) silver collection. When they had the pieces accessed by the right auction company, they realized thousands more with a specialist auction company than they would have received with a local, smaller (generalist) auction company. It always pays to seek experts and get second opinions, and it’s 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, and depending on the client’s needs and collections, we have worked with different auction companies for various objects, artists, and styles. I like to start with the best auction company for the most prominent work in a collection and invite them to look (via emailed photos and/or in-person) and make first choices. I often take a “top-down” approach and learn from the prominent auction companies what work they want, then find alternate opportunities for the remaining work in a collection. Art can be expensive to crate and ship to an auction company nationwide, but that may be the best option for some artwork if it will command a much higher sale 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 your location can represent your client’s assets and reach the market needed to sell their goods.
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.