When insuring, selling, or estate planning, a professional appraisal of your art collection, antiques, and collectibles is essential. This guide outlines important steps to take when getting ready for an appraisal.
1. Identify the Purpose of the Appraisal
Before beginning the appraisal process, identify your specific reason for needing it. Are you preparing for a sale, seeking insurance, or handling an estate settlement? Clarifying the purpose is crucial for the appraiser as it determines the scope of work and the type of value to be used for the value conclusion.
For instance, if you're selling a vintage guitar, the appraiser will research the secondary market, typically the auction market, to identify recent realized sales of comparable guitars.
When adding the guitar to a personal property insurance policy, the appraiser will investigate the primary market, usually retail, as you will need sufficient coverage to promptly replace the property in case of loss.
2. Choose the Right Appraiser
Competency is important. Finding a qualified appraiser is crucial. Look for someone with credentials and a solid background in assessing your property's type, whether that be fine art, antiques, jewelry, or collectibles. For example, if you're appraising a diamond ring, consider an appraiser certified by the Gemological Institute of America (GIA). Credentials from recognized organizations assure you that the assessment will be thorough and unbiased.
You will also want to look for an appraiser who maintains their certification with the Uniform Standards of Professional Appraisal Practice (USPAP) which holds appraisers to the highest professional and ethical standards.
3. Gather Documentation
Organizing documentation beforehand can streamline the appraisal process. This can include purchase receipts, previous appraisals, provenance (the history of ownership), and detailed photographs.
The more thorough your documentation, the better the appraiser can assess your items. Be open about any changes your property has undergone. For example, if your antique high-boy has been restored, provide receipts and records to reflect its current condition accurately.
4. Prepare the Property for Inspection
Creating a clean and organized environment for the appraiser is crucial. This may mean dusting antiques, decluttering spaces, ensuring adequate lighting, taking a sculpture down from a high shelf or removing a large painting from the wall so that the appraiser can inspect the back.
5. The Inspection
During the appraisal, expect the appraiser to photograph, carefully examine and document each property, including its size, medium, the edition number if it is a multiple, presence or absence of a signature, weight in the case of silver or jewelry, and condition. These physical attributes are important contributing factors for the final value conclusion.
6. Review the Appraisal Report
Once the analysis is finished, the appraiser will prepare a report detailing their findings. This report should include property descriptions, valuation definitions and methods, a signed certification that it is an arm's length appraisal, the final opinion of value and an explanation of how that valuation was reached.
Take the time to read through this report carefully. If anything seems unclear, ask questions. Having a clear understanding of your appraisal report can aid you in making informed decisions, especially if you plan to sell or insure the items.
7. Keep Records
Carefully file the appraisal report along with any related documents. This is vital for future appraisals, estate settlement, insurance claims or sale.
Consider having the property re-appraised at least every five years as market trends change which could affect current value.
Your Path to Accurate Property Valuation
Follow these essential steps, whether you are looking to insure your property, preparing to sell, settling an estate, or just curious about your possessions. A reliable appraisal by a USPAP compliant appraiser is crucial to make informed financial decisions about your assets.
Comments