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VALUE REVIEW™
Published by Semler Appraisals & Estate Liquidations
A Professional Service for the Valuation of Personal Property
Spring 2002 Vol. 4, No. 1
Collecting
There are three types of acquirers: accumulators, collectors,
and connoisseurs. Some people start as unconscious accumulators,
gathering possessions through various means. They may have
inherited items passed down from previous generations, or married
and acquired a collection along with a spouse, or may have innocently
started picking up travel souvenirs at various destinations.
In the next stage, the accumulator becomes a conscious collector.
The desire to acquire becomes channeled in a particular area of
interest. When collectors gain particular knowledge in the
field they collect and have a strategy for building their collections,
they rise to the connoisseur or expert level. Five elements
describe the PRIDE of the ultimate collector: Passion, Research,
Investment, Dedication, and Expertise. What type of collector
are you? Your clients?
What Creates Value?
Two seemingly identical items can have different values.
An expert may instinctively be able to identify the more valuable
of the two, but how can a non-expert tell the difference?
The factors that contribute to one item being more valuable
than the other can be broken down into several components.
Not all components will apply to every item.
Authenticity — Signatures are easy to fake. Is that
painting really by the hand of Pablo Picasso, or did Fred Picasso
from down the street make a copy and sign with only his last
name? Hand-cut dovetails in furniture can still be made
today, even though machine-made dovetails are possible.
Authenticity boils down to one question: Is it real?
This must often be determined by experts.
Condition — Of two items being otherwise equal, the one
in the best condition will have a higher value. Depending
on the item, the value can fluctuate greatly due to less than
perfect condition. For instance, any deviation from mint
in glass or pottery drastically reduces value. Repairs
and bruises to furniture have a smaller negative effect on value.
Rarity — Rarity alone can create value, but if an item
is so rare that it falls outside any collecting area, its value
could be insignificant. However, if rarity is combined
with other qualities, a high value could result. The ruby
shoes worn in the Wizard of Oz would bring a higher price at
auction than similar ruby shoes you wore to a costume party
last Halloween.
Historical Importance — “George Washington slept
here.” If there is documentation to support any
historical association, the law of supply and demand helps to
create a strong market.
Provenance — The importance of a previous owner can have
a significant effect on value. A bow tie worn by Stanley
Marcus can bring considerably more at auction than your Uncle
Stan’s bow tie.
Size — Sometimes size does matter. Bigger is not always
better. Consider a collectible salesman’s sample
cast iron stove or Royal Crown Derby miniature ceramics.
The smaller items command higher prices than their full-size
equivalents.
Medium — The materials in which a work of art is created
can have a significant effect upon value. An original
oil is likely to be more valuable than a drawing, and the drawing
more valuable than a print, all things being equal.
Subject Matter — Especially in the art world, subject
matter plays an important role. Consider an oil of dogs
on a hunt and an oil of two dead chickens. The live dogs
undoubtedly have a greater appeal than the chickens.
Fashion — Tastes change and fashion skips generations.
Remember “avocado” shag rugs and appliances?
The 70’s look is back! Avocado is now known as “sage
green.”
Uniform Standards of Professional Appraisal Practice (USPAP)
A two-day USPAP course, presented by the Appraisers Association
of America (AAA), will be offered in Dallas on May 11 &
12, 2002. This seminar is significantly different from
other USPAP courses in that the major focus is on personal property
appraising, rather than real estate appraising or business valuation
appraising. The examples used to illustrate the Standards
will be drawn from fine arts, furniture, decorative arts, collectibles,
and jewelry. This course has been organized to conform
to the criteria set forth by the Appraisal Foundation in Washington,
D.C. I will be attending this seminar. If you would
like additional information or registration materials for the
course, please call us.
Thank You for the Referrals
Many of you share this newsletter with others in your office.
We appreciate the referrals and clients you send to us.
If you have received this issue from a colleague and would like
to be on our mailing list, please contact us at (972) 416-3417,
or drop us an email at semler@ValueReview.com.
Our Services
Appraisals for probate/estate tax, equitable distribution among
heirs, equitable distribution in marital dissolution, insurance
coverage and claims, non-cash charitable contribution, bankruptcy.
Estate Liquidations by auction or tag sale.
Litigation Support
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