Personal Property Appraisers Distinguish Between Trash and Treasure

by Monica Steinisch

For Bob, of Amerey, Wis., 2005 got off to a promising start during the Jan. 3 installment of the Antiques Roadshow, the hugely popular PBS series that takes professional appraisers across the country to assess optimistic participants' treasures. During the St. Paul, Minn. taping, Bob learned that a unique multifunctional Patek Philippe pocket watch given to his grandfather as a gift in 1914 was worth an astonishing $250,000.

That's the kind of news every Antiques Roadshow participant is waiting to hear. Of course, treasures wouldn't be treasures if they could be found collecting dust in every garage and attic from Boston to L.A. In fact, far more Antiques Roadshow hopefuls go home with the confirmation that the painting, book, or knickknack they bought for five bucks at the church rummage sale really is worth five bucks.

But what about that old urn you've been using as a vase? Could that be an ancient Egyptian artifact? Is your signed copy of "Tom Sawyer" authentic? Might that old portrait you inherited from your grandfather belong in the Louvre? An independent personal property appraiser can give you the answers.

When do you need an appraiser?

Levi Morgan, public relations director for Bonhams and Butterfields, the world's third largest auction house, notes that Antiques Roadshow and eBay really have created a greater interest in collecting and collectibles. A broader appreciation of the hobby, and appraisals like that of the quarter-million-dollar pocket watch, are driving hopefuls to their local appraisers in droves. Morgan says his auction house sees around 150 people, collections and family heirlooms in tow, at its free valuation clinics held in San Francisco and Los Angeles each month.

"Collectors are learning that they really should be as aware of the value of their [heirlooms and collectibles] as possible," says Morgan.

Curiosity is just one reason to use an appraiser. A more practical reason is so you can insure your property. As a San Francisco agent for a large national insurer explained it, if your collection of Louis XIV silverware melts into an unrecognizable heap of metal in a fire, you'd better have proof of the collection's existence and value or you're not going to be happy with what you hear from the claims adjuster. Depending on the item or collection, a new appraisal may be needed every so often to ensure that the amount of coverage remains adequate.

You also may need a professional valuation of your personal property during estate planning or divorce negotiations to determine a fair distribution of assets. If you're donating individual items or collections worth more than $5,000 to a nonprofit organization, the IRS (Internal Revenue Service) requires a "gift appraisal." And, of course, you'll need to know what your treasure is worth if you want to get a fair price when you sell it.

Not all appraisals are the same. For instance, an object will be evaluated at its replacement value for insurance purposes. The same object being valued for sale or asset distribution will be appraised at fair market value, or the amount it could fetch in the current auction market. Each type of valuation most likely will result in a different bottom line. Because the wrong kind of appraisal won't stand up in an IRS audit or legal dispute, it's crucial that you get the right kind. A qualified appraiser will understand this and will ask you what you need the valuation for.

There are many reasons to get a formal written appraisal. However, if you're just trying to satisfy curiosity or you're dying to prove to your spouse that you've been right about that old rocking chair all along, then a verbal valuation, which is much cheaper and quicker to get, is probably all you need.

How to hire an appraiser

Unlike real estate appraisers, personal property appraisers do not have to be licensed or hold any type of certification to do business. Because just about anyone can call himself an appraiser, the responsibility is yours to make sure you're hiring someone who is educated, experienced, and ethical.

Before you let your fingers do the walking through the local telephone directory, try to get a referral from someone you trust. If you don't have any friends or family who can help in this area, you probably can get a referral or two from a local museum, your insurance agent, or, if you have one, your attorney.

You also can find a qualified professional in your area by using the online search function offered by three of the major appraiser associations, the American Society of Appraisers, the Appraisers Association of America, and the International Society of Appraisers, each of which has a screening process for inclusion in the database. The fact that they all require members to meet certain minimum requirements in the areas of education and experience makes your search quite a bit less like rolling the dice.

If you have a wide variety of items to be valued, your best bet probably will be to hire a general appraiser or a company that can call on staff specialists as needed. For only one item or a collection of similar items, seek out a specialist in that area. Hiring a folk art expert to value your grandmother's wedding ring would be like seeing an orthopedic surgeon for your sore throat.

Another option is to contact an auction house, which will have a staff of appraisers with a broad range of specialization. A major house like Bonhams and Butterfields provides verbal fair market valuations at no charge for items that may be auctioned. They also provide notarized replacement value appraisals for a fee.

The appraisal

Contrary to what you may see on TV, appraisers generally do not hand out high-figure valuations at a glance. Even on Antiques Roadshow, there is some behind-the-scenes time during which the appraisers can study items of special interest and do some background research.

Appraisers typically charge by the hour, or, for very large collections, by the day. They also may charge for travel or other expenses. Rates can range widely, from $100 to $500 per hour, depending on experience, specialization, location and other factors--not cheap, but a price that could be worth every penny if the appraisal protects you from a big loss.

For your money, you should receive a written report that includes, among other information, the purpose of the appraisal, a full description of the item(s), an explanation of how the value was determined, a sworn statement of objectivity, and a firm statement of value (not an estimate or range unless there is a qualifying explanation included). To see a full list of what an appraisal should include, visit the "Elements of a Correctly Prepared Appraisal" page of the Appraisers Association of America Web site.

Because appraisers typically charge based on the amount of time it takes to research your item or collection, anything that you can provide in the way of history, receipts, photos, or other supporting information can help reduce the fee. Provenance--evidence of the lineage, or ownership history, of an object or work of art--also will help you get the most accurate valuation possible. For example, knowing that your heirloom porcelain soup tureen sat on Thomas Jefferson's Monticello dining table could mean a significantly higher appraisal.

Don't think you possibly could have any treasures sitting around the house? Consider the San Francisco-area family that contacted Bonhams and Butterfields last year about a dish passed on from a grandmother that the family had been using over the years to serve cracked crab and other meals. The platter, which turned out to be a very rare dish from the Ming dynasty, sold at auction for $5.7 million!

If that doesn't motivate you to clean out your garage or attic, nothing will.

May 9, 2005