ACC Program Area:Appraisals & Appraising - Reference Archive
Reference Archive
Collecting Issue. Appraisals on the InternetFrom the NAC/ACC Collecting Clubs eNews electronic newsletter archives. This article appeared in last week's eNews but we are re-running it. The Association of Collecting Clubs will soon be launching a program to assist clubs make decisions in the whole area of offering values, appraising and related services. We would like to hear from clubs who have a special interest in this area or who already offer such services. Using the Internet to seek out values of items picked up at yard sales and flea markets, or found in the attic, is nearing the epidemic level. Some people want values before they list an item on eBay. Others will seek out buyers directly, but want to know the value of their item(s) first. Some simply want to know what a piece is worth, having no intention of selling it. (Remember to take the survey on Appraisals on the website Collectors.org) Eppraisals.com had great intentions of serving this need...but they are no longer operating. Although Eppraisals.com was short lived, in our opinion, it probably was a good experiment, but based on false expectations. In operating Collectors.org, the website for collecting clubs, and several other websites, we sometimes receive upwards to 60-70 queries per day asking for the value of a particular collectible...sometimes a whole list of items. We offered a "Seeking Information" page for visitors to place queries for over two years but quite frankly it was getting out of hand. When Eppraisals.com came along, we soon joined their affiliate program, giving them visual banners on most of our pages, and eventually dropped the "Seeking Information" page suggesting that people consider Eppraisals.com as a viable alternative. The underlying bottom line is that most people using the Internet want free information, free appraisals on their collectibles. They do not want to pay for an appraisal, no matter what the cost may be. Even though our sites referred thousands of visitors to Eppraisals.com by actual count, very few followed through with getting an Eppraisals.com appraisal. What makes matters even worse, not only do many people want a free appraisal, but they want the opinions of as many people as they can get. Again, operating several sites, it is not uncommon to have the same person send the same request for information to several of our sites...and they probably have also blanketed a number of other antique and collectible websites. We have always tried to be responsible in replying to as many queries as we can, but in past months we are finding more and more simply have to go unanswered due to the time factor. In discussing this issue with several other established dealers, we find many of them are initiating a policy of not responding to any requests for free information on values. They say "let the people do their own homework, like I have to; there are plenty of price guides and reference books readily available in any public library or book store, and in many antique malls...some great information resource sites on the Internet...let them go to the eBay search on completed auctions for prices, or to the larger search engines and do a word search on their item." As we stress in the Appraisals and Appraising page on Collectors.org, soliciting a certified appraiser to offer a formal opinion on a valuable piece, or on an entire collection, is the correct way to go. Again, Eppraisals.com offered another option. We see more and more appraisal clinics at the local level connected to antique and collectible shows and antique malls or shops having special events. These appear to be very successful in offering a valued service, plus in promoting the event or business to which they are connected. We know many clubs are facing the same dilemma, particularly those with websites. Receiving an avalanche of queries for values relating to their area of collecting. As an educational base, a club undoubtedly has a responsibility to respond to queries whenever they can, so long as they have the manpower and the knowledge base to do so. Do any clubs charge for appraisal services? Should they? As the antiques and collectibles industry grows with millions of new collectors every year, the educational process of collecting becomes almost overwhelming. Eppraisals.com was a viable experiment, heavily promoted and ready to provide a needed service. Their major problem was that they wanted to charge for it. (by Larry Krug, National Association of Collectors) Let us hear from you about appraisals on the Internet. As a collector, a dealer, responsible for a collecting club, particularly if you have a website. Are you receiving a lot of queries for values? Or, perhaps you, yourself, make queries to other sites. How "obligated" should site managers be in responding to these queries? Please go up to the Issues area on the http://collectors.org website and take our visitor's poll on appraisals and give us your comments. Or you can simply e-mail us your comments at info@collectors.org or FAX 301.926.7648 200203 International Society of Appraisers Comment on Demise of Internet AppraisalsFrom the NAC/ACC Collecting Clubs eNews electronic newsletter archives. On June 15, 2001, a Wall Street Journal article titled, "Online Appraisals Overvalued?" reported that Eppraisals.com and AuctionWatch.com have closed. These online appraisal companies frequently charged clients $25 to $40 per item and paid the appraiser $10 to $15. How much time is a professional going to spend for that return? Every collector knows that condition is paramount in evaluating items. Originality is critical, the human race has been reproducing things for centuries. The reproduction industry is huge -- glass, ceramics, furniture, ivory, iron, the list is endless. Identifying a reproduction from a photo can be a challenge, if not impossible. There is the story of the Queen Ann bonnet top secretary that a major auction gallery had identified from a photo as a period piece. Of course their letter included all the standard disclaimers, but the owner believed he had an extremely valuable piece. Years later when he was thinking of selling it, he contacted a qualified professional appraiser, who had the sad task of informing the collector that his precious secretary was a 20th Century factory made piece with a plywood back that had been in a fire. There is an old saying, "you get what you pay for." If you pay $25 for an appraisal you can expect a $25 appraisal or, in the case of an electronic appraisal, maybe a $10 or $15 appraisal. Appraisers are, for the most part, independent business persons. When seeking an appraiser, a serious collector will generally use due diligence in screening candidates. Do all appraisers have similar qualifications? The short answer is no! Neither state nor federal governments regulate personal property appraisers, unlike real property appraisers who are required to have specific training and state licenses. Your neighbor who has been frequenting flea markets could, legally, decide that appraising would be a great part-time job and set up an appraisal business. A professional appraiser will have a combination of formal training in appraisal theory, principles, and methodology, plus training and experience in the specialty field in which s/he is practicing. Appraisal associations like the International Society of Appraisers provide formal training, established appraisal standards, and a code of ethics. Most appraisal associations require their members to requalify periodically. Did you know that the same item might have many different appraised values depending on how you intend to use the appraisal. For instance, a value for insurance may be very different than a value for estate tax, consumer resale, or charitable contribution. Other assigned uses include investment, liquidation, price confirmation, equitable distribution, loan collateral, and casualty loss. Appraisers are entrepreneurs and establish their own fee structure, normally based on their knowledge, level of training, specialty expertise, and the market in which they practice. Rates in a large metropolitan area may be higher. The fee of a trained professional appraiser will normally fall in the range of $75 to $150 per hour for examination, research and report preparation. Hourly rates or bid prices are ethical fee structures, but you should never pay a percentage of value. Do not have someone who is interested in buying the piece appraise an item. A professional will tell you up front if items are not of sufficient value to warrant the cost of a formal appraisal. For such items you may only need a verbal approximation of value, which is not based on research and commands a lower fee. Here are some questions to ask when hiring an appraiser:
This article is authored by Chris Coleman, a retired appraiser, currently the Executive Director of the International Society of Appraisers, who may be contacted at isahq@isa-appraisers.org For more information go to the ISA website: http://www.isa-appraisers.org/public.html or visit the page on appraisals and appraising on the Collectors.org website. 200107 Appraisals & Appraising: What Every Collector & Dealer Should KnowFrom the NAC/ACC Collecting Clubs eNews electronic newsletter archives. It would be difficult in this day and age to be actively involved in the antiques and collectibles industry--either as a dealer or a collector--without being aware of the growing significance of having valuables appraised. Sooner or later most every dealer or collector has a need for an appraisal of something they own, maybe their entire collection or inventory. Yet, perhaps surprisingly, most do not have the slightest idea of how to go about getting help...at least for a "formal" appraisal or soliciting an "accredited" appraisal. Also, there is a growing fascination with the whole idea of doing appraisals...becoming an appraiser. An entire segment of Collectors.Org, the website for collectors clubs and collectors, covers appraisals and appraising in layman's terms. Developed with the cooperation and assistance of the International Society of Appraisers (ISA), the section covers when you need an appraiser, what qualifications an appraiser should have, how much you should pay, how to get help selecting the right appraiser and what should be in the appraiser's report. Also covered: "Should I consider becoming an appraiser?", "Can I become an appraiser without becoming certified?" and "Appraiser's Liability." A listing of appraisal associations is also given in this section. Visit: http://collectors.org 200108 Collecting Issue. Responding to Requests for Values -- ResponsesFrom the NAC/ACC Collecting Clubs eNews electronic newsletter archives. A dealer writes, "we have a website with a rather varied inventory covering a number of both antique and collectible areas. Consequently, we are getting inundated with e-mails from people wanting "free advise" on values...or the "history" of an item they have which is like, or "similar" to, one on our site, i.e. a free appraisal. Sometimes we get several dozen a day. Most of these we ignore simply because we do not have the time to respond (nor feel the obligation to do so). What do other dealers do? Read some responses. We realize by not responding to queries, this may be bad for business. On the other hand, if we responded to each one, it would take a couple of hours each day which we simply do not have the luxury of giving. Also, if we do give an appraisal or "opinion" of what an item a person has may be worth, sight unseen, and it turns out to be wrong, are we liable from a legal standpoint? (We are not a certified appraiser...and have no desire to become one.) Another reader writes, "while I can understand the dealers not wanting to be inundated with requests for appraisals, how else can I determine the value? The dealers must be members of an association or club of collectors. They could refer the people to a dealer in their area. In fact, that is what I would prefer, being referred to a specialist or authority who can give me the best advise on my query. And a dealer writes, "I completely understand the frustration of this dealer. I, too, am bombarded every day by e-mail queries for values on items. The real problem is not that it is that difficult to explore the many references available on the Internet by doing a little searching, or to go to the library and look in price guides available, but that most of these people are too damned lazy to do this...they would rather simply find a dealer who happens to be offering something like what they have and send them an e-mail for a free appraisal." Note: Apparently this is a growing problem for collectors and dealers alike. We have heard this plea from a number of other dealers, and collectors, who have websites. We know, as fact, that some people will send out dozens of queries on an item to anyone who has a site with similar merchandise. By receiving a group of responses they can sort through them and feel comfortable with coming up with a composite value on the item. But is this fair to the dozens of people to whom they have written? (You can bet if they had to put a postage stamp on each one of these queries, there would be far fewer!) What are the solutions? Should collecting clubs get more involved in freely promoting their "availability" to do evaluations in their respective collecting areas. Again, let us hear from you. E-Mail: info@collectors.org or FAX: 301.926.7648 2001.10 |
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