Whether you’ve inherited a few pieces of jewelry, are starting to collect sports memorabilia, or have invested in wine or fine art over the years, your collectibles are a part of your history and your story. They may even be worth a substantial amount of money.
Any time you own a valuable collection, consider getting the items appraised. Here’s why:
Protect Your Investment
You’ve spent time and money building your collection so it’s just smart planning to protect it. To get insurance on valuable collectibles, you may need to know how much they’re worth. An appraisal will let the insurance company know how much they’re on the hook for if your pieces are lost, stolen, or damaged. Keep in mind that most homeowners’ policies will provide limited coverage for valuables. To fully protect your collectibles, you may need a separate valuables policy.
And, if you are looking at the idea of selling your valuables, you’ll need to know how much to charge, and potential buyers will probably want to know the process by which the item’s value was determined. So, a professional appraisal is the way to go.
Understanding Your Collection’s Worth
Sometimes, it’s just been a bit of time and you’re seeking information on if your collection has appreciated in value, or you could have recently inherited items from a loved one – either way, getting a true valuation on the collection’s worth is important.
If you inherited collectibles, you will need to have them appraised for the “date-of-death” value. You’ll need this value to calculate capital gains taxes later if you decide to sell the collectibles.
If you’re seeking the latest valuation, you may be surprised to know that different values can be calculated for the same item. Depending on the purpose of the appraisal, the same item can have more than one type of value. The two most common are fair market value and retail replacement value.
Fair market value is the price at which property would change hands between a willing buyer and a willing seller. This value is typically used for IRS appraisals or to inform a sale. Retail replacement value is the highest amount that would be required to replace a piece with another of similar age, quality, origin, appearance provenance, and condition. This value is typically used for insurance purposes.
Hire A Professional Appraiser
People often think that the way to get an appraisal is to go to the place where that type of valuable is sold. For example, if you inherited an antique collection, you might think it wise to go to an antique shop for an appraisal. Actually, this approach can be misleading. It’s best to seek out an expert who does not have an active interest in purchasing your item. This expert will provide you with trimmed-down facts, and reports and will maintain a neutral interest in the transaction, giving you the most honest and accurate assessment of your collection.
How To Find A Certified Appraiser
Consult one of the three major appraiser organizations. Search for a member of one of the major appraiser organizations: The Appraisers Association of America (AAA), the American Society of Appraisers (ASA), or the International Society of Appraisers (ISA). To obtain and maintain membership in these organizations, appraisers must complete courses and exams, demonstrate years of experience, and adhere to a set of strict ethical standards. Look for someone who has expertise in what you have. Not all appraisers have knowledge of all types of valuables, so find someone who really knows the type of item you have. Avoid appraisers who charge a fee based on a percentage of the item’s value. This is a conflict of interest and strictly prohibited by the three major appraiser societies. Instead, your appraiser should charge a flat fee or hourly rate.
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Whether you’ve inherited a few pieces of jewelry, are starting to collect sports memorabilia, or have invested in wine or fine art over the years, your collectibles are a part of your history and your story. They may even be worth a substantial amount of money.
Any time you own a valuable collection, consider getting the items appraised. Here’s why:
Protect Your Investment
You’ve spent time and money building your collection so it’s just smart planning to protect it. To get insurance on valuable collectibles, you may need to know how much they’re worth. An appraisal will let the insurance company know how much they’re on the hook for if your pieces are lost, stolen, or damaged. Keep in mind that most homeowners’ policies will provide limited coverage for valuables. To fully protect your collectibles, you may need a separate valuables policy.
And, if you are looking at the idea of selling your valuables, you’ll need to know how much to charge, and potential buyers will probably want to know the process by which the item’s value was determined. So, a professional appraisal is the way to go.
Understanding Your Collection’s Worth
Sometimes, it’s just been a bit of time and you’re seeking information on if your collection has appreciated in value, or you could have recently inherited items from a loved one – either way, getting a true valuation on the collection’s worth is important.
If you inherited collectibles, you will need to have them appraised for the “date-of-death” value. You’ll need this value to calculate capital gains taxes later if you decide to sell the collectibles.
If you’re seeking the latest valuation, you may be surprised to know that different values can be calculated for the same item. Depending on the purpose of the appraisal, the same item can have more than one type of value. The two most common are fair market value and retail replacement value.
Fair market value is the price at which property would change hands between a willing buyer and a willing seller. This value is typically used for IRS appraisals or to inform a sale. Retail replacement value is the highest amount that would be required to replace a piece with another of similar age, quality, origin, appearance provenance, and condition. This value is typically used for insurance purposes.
Hire A Professional Appraiser
People often think that the way to get an appraisal is to go to the place where that type of valuable is sold. For example, if you inherited an antique collection, you might think it wise to go to an antique shop for an appraisal. Actually, this approach can be misleading. It’s best to seek out an expert who does not have an active interest in purchasing your item. This expert will provide you with trimmed-down facts, and reports and will maintain a neutral interest in the transaction, giving you the most honest and accurate assessment of your collection.
How To Find A Certified Appraiser
Consult one of the three major appraiser organizations. Search for a member of one of the major appraiser organizations: The Appraisers Association of America (AAA), the American Society of Appraisers (ASA), or the International Society of Appraisers (ISA). To obtain and maintain membership in these organizations, appraisers must complete courses and exams, demonstrate years of experience, and adhere to a set of strict ethical standards. Look for someone who has expertise in what you have. Not all appraisers have knowledge of all types of valuables, so find someone who really knows the type of item you have. Avoid appraisers who charge a fee based on a percentage of the item’s value. This is a conflict of interest and strictly prohibited by the three major appraiser societies. Instead, your appraiser should charge a flat fee or hourly rate.
