Managing Your Collections

 

QUESTION: I’ve been collecting antiques and collectibles for the past 30 years. Now that I’m getting older, I’m looking to sell off some of my items but I have little information on items in my collections. What is the best way to document my collections?

ANSWER: Failing to document their collections is more common than you may think. Many people enjoy the fun of collecting antiques and collectibles but don’t take the time to manage their collections. And many seniors, seeking to downsize, all of a sudden want to sell some of their items. They often try in vain to get valuations for their items online. But without previously documenting their collections, this can be a challenge.

Those who are just starting collections should record a description and history of each item, as well as the date purchased and the price paid. Those managing their collections years after purchase may have a harder time of gathering information, but with today’s technology, it’s easier than ever. One thing they may not have is the date of purchase and price paid—two very important facts when determining current value.

Collecting is a personal thing and most people do it for sheer enjoyment. They choose some objects carefully to build or enhance their collections, acquire others to use everyday, and inherit still others. While collectors treasure each item in their collections, many don’t understand the appeal or the value of it. 

Over the last couple of decades, the value of some antiques has fallen while that of some collectibles has risen. What many collectors lack is a comprehensive record, with supporting documents, of objects they own. As antiques increase in value, it’s important to know their provenance. While most people don’t think of their prized objects as part of their tangible financial assets, the IRS, insurance companies, banks, and courts do.

"To document" means to create a record that thoroughly describes an object and which also contains related documents about it, and keep together this record and supporting information on each object. 

A collector may already have some types of documents or can easily acquire them, such as a bill of sale, a note accompanying a gift, a snapshot, a printed description, a program from an exhibit, biographical information on the artist or maker, a description and picture of a similar object perhaps from a newspaper, magazine, or the Internet, a copy of a mark on the object, and others.

The objects in specialized  collections— furniture, dolls, quilts, kitchen utensils, guns, tools, even sports and music memorabilia—are prime candidates for documentation. Museums document each object in their collections. So it’s only natural that collectors do the same for insurance purposes, family heritage, preparing for appraisal, tax benefits, and connoisseurship.

At the very least, a collector should know what he or she paid for each object in their collections. Some insurance companies require that jewelry and fine art be placed on a special schedule. Often they also require an appraisal for the most valuable pieces. 

In case of theft, loss or damage by fire, flood or national disasters, a collector needs to prove ownership of any object claimed and provide descriptions with supporting information in order to be compensated or to help the police identify and recover the stolen valuables. If a collector cannot do this, there’s a risk of losing compensation in addition to being permanently separated from the treasured object. The more adequate the proof is, the greater the chances that will be satisfying. It’s more difficult to document after a loss occurs, and perhaps it cannot be done at all.

Every home has objects of value—whether monetary, sentimental or family-related. Documenting can help people decide which objects they wish to give to certain heirs. Recording the provenance and capturing the family history associated with a particular object provides a more complete picture for both the collector and the heirs. 

If certain pieces have been handed down through the family, they may have family stories associated with them. It’s important not to depend on those stories being passed down verbally. They should be written down. Additionally, heirs often carelessly sell off family pieces or give them away because succeeding generations are unaware of their actual or sentimental value. This is often done in the haste to clear a house after a loved one’s death. Documenting can assure that certain pieces  remain in the family, or at least that someone will make an educated decision before selling or giving away a special object.

Insurance companies usually require that a collector or an heir provide them with a professional appraisal. However, not every object in your household needs to be appraised. Documenting can help decide which objects need to be appraised, plus it can also provide the appraiser with valuable information, thus saving time and reducing the cost of the appraisal. The appraisal then becomes part of the object’s documentation.

And If an object is sold or given to a museum or other institution, its documentation can provide detailed information from acquisition to sale or gift, providing a factual basis for tax benefits. Museums look upon documentation as a benefit, as it provides valuable family and cultural history about an object for its visitors. 

If not documentation exists, it’s important to begin with a simple search for it on the Internet. While it’s possible to get results using a simple keyword search, that may not reveal anything. An alternative would be to conduct an image search. Using the same keyword(s), click on the Images tab in the search page. This will result in photos of objects related to search words. Clicking on one or more that look like or similar to the object being researched will bring up the Web site associated with it. 

Patience is required when searching. It may take several different keywords to obtain any useful information. 

To get an idea about value, it’s possible to search for online antique auction sites and there search for an object using the same keyword(s). By searching several auctions for the sold prices, then averaging them, it’s possible to get an approximate current value for the object.

To read more articles on antiques, please visit the Antiques Articles section of my Web site.  And to stay up to the minute on antiques and collectibles, please join the over 30,000 readers by following my free online magazine, #TheAntiquesAlmanac. Learn more about "In the Good Ole Summertime" in the 2024 Summer Edition, online now. And to read daily posts about unique objects from the past and their histories, like the #Antiques and More Collection on Facebook.

So You Think You Need an Appraisal

 

QUESTION:  I have inherited a bronze statue called “The Bronco Buster” by Frederic Remington, along with several other bronzes from my uncle. I know nothing about them but admired them on visits to his house. I’d like to find out what they’re worth and the best way seems to be getting them appraised but I have no idea where to start. Can you help me?

ANSWER: Bronzes are interesting pieces of sculptural art. Unlike paintings and other forms of sculpture, bronzes have been cast from a clay original. Does that make them less valuable? Certainly not. In fact, depending on the number cast from the original mold, they can be quite valuable. When it comes to art, most antique dealers don’t know where to start to valuate a bronze sculpture. For this, you’ll need an expert’s opinion. 

Contrary to popular opinion, not just anyone can valuate an antique or collectible. Asking someone how much an object is worth is like asking if it will rain tomorrow. The only way to know what an antique, especially a potentially valuable one such as this clock, is worth is by having it “appraised” by a professional appraiser. And only a professional appraisal is legally binding when it comes to insurance claims or inheritances.

Exactly what is an appraisal? An appraisal is the paid opinion of an expert on the value of an object based on known facts. In the case of antiques and collectibles, known facts include records from more than one sale at more than one auction, the latest published price guides, and personal experience gained from buying and selling similar items many years.

While a verbal appraisal may offer an indication of how much an item is worth, a professional written one is the only one legally recognized by insurance companies and the courts. It must be based on fact and able to stand challenges in court. However, written appraisals, even for one item, can take hours to prepare and are expensive, but are absolutely necessary to prove an item’s worth.

A written appraisal is the result of hours of research by the appraiser. First, he or she must determine the age of the object based on its appearance, materials, and craftsmanship. Decorative techniques and motifs may also play a part. Then the appraiser needs to search for a provenance if the object doesn’t yet have a written one.

A provenance is a history of ownership dating from when the object was first made and by whom and continuing through various owners to the present day. This may not be easy. Often the appraiser has to contact experts in the particular category of antiques to fins out more about the object. Lastly, the appraiser searches auction databases, not available to the public and only to subscribers for hefty fees, to find out the sales history for objects like the one being appraised. While the last sale price usually determines the market value of the object, an appraiser will often average out the most recent sale prices to determine the object’s value. All this information, written up in legal form, plus photographs of the object, constitutes the appraisal of the object. Most appraisers usually assemble the contents of the appraisal in a folder or bound form before presenting it to the current owner of the object.

Take General Sherman’s hat, for example. Did this hat actually belong to General Sherman? How many other owners did it have after him? And how did the hat get passed down to it’s present owner? While there may have been other hats like it, most likely it was one of a kind, made especially for Sherman. This is where an appraisal is best.

Formal appraisals fall into two categories—replacement and fair market value. Insurance companies require the former, while estate valuations require the latter.

Replacement value is generally defined as the price at which an object would be available on the retail market. In other words, what an antique dealer would charge for a particular item.

When you try to insure a collection, the insurance company wants to know how much it will cost to replace it. The same applies for a single piece of furniture. The insurance company won’t accept a verbal appraisal as the basis of settling a claim. Instead, they require a written appraisal with proof of replacement cost.

Fair market value, on the other hand, is best described as "the price that property would sell for on the open market between a willing buyer and willing seller, with neither being required to act, and both parties having reasonable knowledge of the reasonable knowledge of the relevant facts.

But whatever the appraised value, an object will bring only a percentage of its replacement value when offered for sale—generally between 40 and 60 percent below replacement cost. Items that sell extremely slow will sell for only about 30 percent of replacement value, while those that sell fast may bring 80 to 90 percent of replacement value. 

With so many auction sites online these days, it’s easy to pull one up and do a search for a particular antique or collectible to see what it may be selling for. Most people use eBay. Unfortunately, the amounts listed on eBay may not reflect an object’s true value. If the object is listed on an auction site, then, as with live auctions, the price could go way above the object’s current value due to competition between bidders. If someone really wants an antique or collectible, they may stop at no amount of money to obtain it.

Objects of antiquity are another matter altogether. Copies abound. This little ancient Egyptian sculpture of a boat and its occupants is a good example. To the untrained eye, it may look authentic, but only an expert can tell for sure. In fact, many copies of small tomb sculptures have been made and sold as souvenirs to tourists.  

Too many homeowners use this as an easy way to price items in a yard or garage sale. Flea marketers do the same. This is why so many items that are actually worth much less are selling for higher prices today at these venues. 

Prices of objects at antique shows usually sell for the amount of their value or a little less. However, some sell for what the dealer perceives to be the value of the object. High-end dealers selling objects for four to six figures do their research and know their market. Those selling at middle-market shows, sometimes do research about an item, but, more often than not, just guess at an item’s value and price it for what they think the market will bear.

To read more articles on antiques, please visit the Antiques Articles section of my Web site.  And to stay up to the minute on antiques and collectibles, please join the over 30,000 readers by following my free online magazine, #TheAntiquesAlmanac. Learn more about "The Ancients" in the 2021 Spring Edition, online now. And to read daily posts about unique objects from the past and their histories, like the #Antiques and More Collection on Facebook.

Getting an Appraisal

QUESTION:  I have inherited a tall case clock and am looking for some guidance. The clock is said to be at least from the time of the Revolutionary War. There’s a slit in the back that I’m told is from a soldier putting a sword through. I’m trying to get a value for shipping and also for fairness for other family members in the event it’s really valuable. Can you help me?

ANSWER: Contrary to popular opinion, not just anyone can valuate an antique or collectible. Asking someone how much an object is worth is like asking if it will rain tomorrow. The only way to know what an antique, especially a potentially valuable one such as this clock, is worth is by having it “appraised” by a professional appraiser. And only a professional appraisal is legally binding when it comes to insurance claims or inheritances.

Exactly what is an appraisal? An appraisal is the paid opinion of an expert on the value of an object based on known facts. In the case of antiques and collectibles, known facts include records from more than one sale at more than one auction, the latest published price guides, and personal experience gained from buying and selling similar items many years.

While a verbal appraisal may offer an indication of how much an item is worth, a professional written one is the only one legally recognized by insurance companies and the courts. It must be based on fact and able to stand challenges in court. However, written appraisals, even for one item, can take hours to prepare and are expensive, but are absolutely necessary to prove an item’s worth.

A verbal appraisal, on the other hand, is an informal one. Usually, the person giving the appraisal spends no time researching auction records and price guides. Therefore, a verbal appraisal is an opinion based on first hand knowledge.

Formal appraisals fall into two categories—replacement and fair market value. Insurance companies require the former, while estate valuations require the latter.

Replacement value is generally defined as the price at which an object would be available on the retail market. In other words, what an antique dealer would charge for a particular item.

When you try to insure a collection, the insurance company wants to know how much it will cost to replace it. The same applies for a single piece of furniture. The insurance company won’t accept a verbal appraisal as the basis of settling a claim. Instead, they require a written appraisal with proof of replacement cost.

Fair market value, on the other hand, is best described as "the price that property would sell for on the open market between a willing buyer and willing seller, with neither being required to act, and both parties having reasonable knowledge of the reasonable knowledge of the relevant facts.

But whatever the appraised value, an object will bring only a percentage of its replacement value when offered for sale—generally between 40 and 60 percent below replacement cost. Items that sell extremely slow will sell for only about 30 percent of replacement value, while those that sell fast may bring 80 to 90 percent of replacement value.

With so many auction sites online these days, it’s easy to pull one up and do a search for a particular antique or collectible to see what it may be selling for. Most people use eBay. Unfortunately, the amounts listed on eBay may not reflect an object’s true value. If the object is listed on an auction site, then, as with live auctions, the price could go way above the object’s current value due to competition between bidders. If someone really wants an antique or collectible, they may stop at no amount of money to obtain it.

Too many homeowners use this as an easy way to price items in a yard or garage sale. Flea marketers do the same. This is why so many items that are actually worth much less are selling for higher prices today at these venues.

Prices of objects at antique shows usually sell for the amount of their value or a little less. However, some sell for what the dealer perceives to be the value of the object. High-end dealers selling objects for four to six figures do their research and know their market. Those selling at middle-market shows, sometimes do research about an item, but, more often than not, just guess at an item’s value and price it for what they think the market will bear.

To find a professional antiques appraiser near you, contact the International Society of Appraisers. 

For more information, read my article on appraisals in The Antiques Almanac.

Documenting Your Collections

QUESTION: I’ve been collecting older items for the last 20 years or so. I’ve got several collections of moderately valued antiques, but I have little information on them except my own knowledge. What is the best way to document my collections?

ANSWER: That’s a very good question. Many people enjoy the fun of collecting antiques but don’t take the time to manage their collections. Before you can successfully manage your collections, you have to gather some information on the items in them. And with today’s technology, that’s easier than ever.

Today, more people collect antiques than ever before: Collecting is a personal thing and most people do it for sheer enjoyment. They choose some objects carefully to build or enhance their  collections, acquire others to use everyday, and inherit still others. Each collector treasures each item in their collections, yet many other people don’t understand the appeal or the value of it. But the value of some antiques has been rising steadily over the last decade, so collecting can represent an investment as well. What many collectors lack is a comprehensive record, with supporting documents, of objects they own. As antiques increase in value, it’s important to know about what you own. Even if you don’t think of your prized objects as part of your tangible financial assets, be assured that the IRS, insurance companies, banks, and courts do.

"To document" means to create a record that thoroughly describes an object and which also contains related documents about it, and keep together this record and supporting information on each object.

Some types of documents you already have, or can easily acquire, such as a bill of sale, a note accompanying a gift, a snapshot, a printed description, a program from an exhibit, biographical information on the artist or maker, a description and picture of a similar object perhaps from a newspaper, magazine, or the Internet, a copy of a mark on the object, and others. You can also record the family history related to the object. The objects in specialized  collections— furniture, dolls, quilts, kitchen utensils, guns, tools, even sports and music memorabilia—are prime candidates for documentation. Museums document each object in their collections. So it’s only natural that you should do the same for reasons of insurance, family heritage, preparing for appraisal, certain types of tax benefits, and connoisseurship.

At the very least, you should know what you paid for each object. Some insurance companies require you to put certain valuables, such as jewelry and fine art, on a special schedule. Often they also require an appraisal for the most valuable pieces.

In case of theft, loss or damage by fire, flood or national disasters, you need to prove ownership of any object claimed, and provide descriptions with supporting information in order to be compensated or to help the police identify and recover your stolen valuables. If you cannot do so, you risk loss of compensation in addition to being permanently separated from your treasured object. The more adequate your proof is, the greater the chances that you’ll be satisfied with the compensation you receive. You can spare yourself some of the anguish that comes from experiencing the loss itself, or with an inadequately compensated loss by documenting your objects before the loss occurs. It’s more difficult to document after a loss occurs, and perhaps it cannot be done at all then. You would also be dealing with all the emotions associated with loss of objects, and perhaps your entire home. In your lifetime, expect a possible loss sometime, and prepare for it. Documenting is a great help because it gives you control over the objects in your collections.

Every home has objects of value—whether monetary, sentimental or family-related. Documenting can help you decide which objects you want to give to certain heirs. Recording the provenance and capturing the family history associated with a particular object provides a a more complete picture for yourself and your heirs. Don't neglect to pass on the family stories associated with an object. Don’t depend on those stories being passed down verbally. Write them down. Additionally, family pieces are often carelessly sold or given away because succeeding generations are unaware of their actual or sentimental value. This is often done in the haste to clear a house after a loved one’s death. By documenting, you can assure to some extent that pieces will remain in the family, or at least that someone will make an educated decision before selling or giving away an special object.

If you insure valuable antiques, your insurance company will usually require you to provide them with a professional appraisal. However, not every object in your household needs to be appraised. Documenting can help you decide which objects to have appraised, plus it can also provide the appraiser with valuable information, thus saving time and reducing the cost of the appraisal. The appraisal then becomes part of the documentation on your object.

If you sell an object or give it to a museum or other institution, your documentation can provide detailed information from acquisition to sale or gift, thereby providing you with a factual basis for tax benefits. Museums look upon documentation as a benefit, as it provides valuable family and cultural history about your object for its visitors.

Documenting is a part of connoisseurship, or caring for your collection, thus enhancing your and others' enjoyment of it. You care for your objects by learning how to clean, store, display, or use them, by assuring certain temperatures, or keeping certain objects from direct sunlight. By continuing to learn more about the objects you like to collect, you’ll enhance your enjoyment of your collections.

The Quagmire of Value

QUESTION: I just inherited a lovely old armoire from my mother. As we were taking stock of her things, an antique dealer, who had come to look at some other items, told me he’d give me $1,000 for it. I really love the piece and am not considering selling it, but I would like to know its value. Can you help me?

ANSWER: While the answer to this person’s question may sound simple, in fact, it’s far from it. What type of value does she mean–retail value, insurance replacement value, fair-market value, auction value, or cash value? In the end, each of these values will be a different amount. Other factors determining value are age and condition. So where to begin.

Let’s start with retail value. This is the price for which an antiques dealer expects to sell an item after marking it up from the price the dealer paid for it in order to make a profit. This amount can  be anywhere from 20 to100 percent of the dealer’s purchase price.

The amount of money it would take to replace an item from a antiques shop or online if it were lost, stolen, or damaged is called the insurance replacement value.

The price that an item would sell for on the open market between a willing buyer and a willing seller is known as the fair-market value. This is also the value that’s used when an item is donated to a charity or is part of someone’s estate.

And when someone puts an item up for auction, the price that an appraiser feels the item should bring at auction, based on comparison of like items and recent other auction sales, is known as the auction value, but has nothing do with the actual value of the item.

However, being told something is worth a specific value is meaningless if the appraiser doing the appraisal has no knowledge of the item itself or the market for it. And auction prices, such as those eBay are not an indicator of true "worth," since many of these sales prices are inflated many times over in the heat of bidding up an item. And a verbal appraisal is worth nothing without a written one to back it up, especially in the case of settling an estate.

To learn more about how to value your antiques and collectibles, read my article, “What’s It Worth?,” on my antiques Web site, The Antiques Almanac.