“What’s it Worth?” – Why It Matters Who You Ask
Detail of L'Enseigne de Gersaint, 1721
Antoine Watteau (French, 1684-1721)
Oil on canvas
Source: Charlottenburg Palace, Berlin (Wikimedia Commons)
Worth can be viewed from different perspectives including financial, nostalgic, and historical. Unfortunately, the cultural or personal significance of a piece may not correlate to its current monetary status. Let alone, that an item can have several different types of amounts depending on the situation.
So, what’s it worth? There can be many answers to such a question, with some more accurate than others. When it comes to art, antiques, and collectibles, there are several types of professionals to consider asking for assistance. And their responses could diverge depending on their business perspective, financial interest, expertise, and understanding of valuation methodology. So let’s take a look at some options that owners might choose when seeking an opinion on value.
Qualified Appraisers
“Can you just give me a ballpark idea? I don’t need a detailed report, I just want to know what it’s worth.”
The Connoisseur, ca. 1860–65
Honoré Daumier (French, 1808–1879)
Pen and ink, wash, watercolor, lithographic crayon, and gouache over black chalk on wove paper
Source: Metropolitan Museum of Art, New York
Those of us who work as personal property appraisers hear variations of this request frequently. And much to the surprise of some people, it isn’t that simple. We admit that part of the misconception is due to the mainstream media portrayal of our profession, where reality shows make us look like object psychics. In the space of five minutes, and maybe a commercial break, the appraiser readily has the answer. But like most television, such depictions are not real life.
In actuality, a qualified appraisal takes time. Time to consult with the client about the reasons for a valuation, time to examine the subject property, time to research important characteristics, time to analyze the market, time to develop the report … you get the idea. But in the end, you as the client will receive a professional opinion of value that’s knowledgeable, well-reasoned, and fits your specific circumstances.
And here’s an important caveat: appraisers who are compliant with the Uniform Standards of Professional Appraisal Practice (USPAP) are unbiased in their valuations. While you hope objectivity would be more widespread, it’s a trait that remains elusive in the trade. A qualified appraiser is one of the very few professionals who is obliged to remain neutral. That’s why it takes time for an appraiser to communicate his or her value conclusions.
It’s also why qualified appraisal reports are the preferred form of documentation in legal, governmental, and financial circles. Besides the client, other intended users of the report could possibly be attorneys, insurance companies, family offices, accountants, etc. For instance, the IRS increasingly recognizes USPAP-compliant reports by qualified appraisers above others. If you donate artwork to a 501(c)(3) organization and want a tax deduction for property valued at $5,000 or higher, you’ll need to hire a qualified appraiser.
Engaging a qualified appraiser is the most thorough of options when seeking an opinion about what your personal property is worth. But what are some alternatives?
Learn more at “What to Look for When Seeking a Qualified Personal Property Appraiser”
Galleries or Antiques Stores
A Vsisit to the Art Dealer
Frans Francken the Younger (Flemish, 1581-1642)
Oil on copper
Source: Hallwyl Palace, Stockholm (Google Arts & Culture)
Retailers such as galleries and antiques stores have different philosophies when it comes to handling valuation queries. In general, they can be quite selective in responding. At one end of the spectrum, some retailers have a policy of giving no value opinions unless there is a sincere intention of selling with them. This is understandable when you imagine how many calls and emails they receive weekly soliciting a free quote. Other companies treat valuations as an auxiliary service available for a fee; they will often have an explanation of the process on their website.
However, if you bought the subject item at said gallery or store, they will be more inclined to be of assistance. It helps if the purchase occurred in recent memory or, better yet, you have written proof via a receipt or bill of sale. If they offer you a written valuation, the document will likely be for insurance coverage purposes and no other. The exception being that the retailer also performs qualified appraisals as part of their business. It’s useful to discuss with them how they handle valuations and if anyone on their team has credentials associated with personal property appraising.
When discussing galleries, antique shops, and vintage boutiques, we are in the realm of the retail environment. Price points at this upper level of the market tend to be at the higher end of the value range. Why? Because sellers of this ilk have to consider the high cost of doing business. Expenses may include rent, advertising, acquiring and maintaining inventory, marketing and display, producing shows, attending fairs, employee salary, insurance, etc. As a result, their asking prices take into calculation these underlying costs. Therefore, the retail asking price enables the dealer to earn a living and, hopefully, make a profit. You as the owner selling to such a company must keep in mind that that final ticket price you see for the end consumer is not the sale offer you’ll likely receive.
Harlem Merchant, 1937
Morris Engel (American, 1918-2005)
Silver and photographic gelatin on photographic paper
Source: National Museum of African American History, Smithsonian, Washington D.C.
In fact, galleries are one of the most opaque sectors of the art industry. Private sales are preferred with pricing information kept closely guarded. Part of this mystery is intentional as to maintain an allure of exclusivity and prestige. Another concern is the poaching of clientele or knowledge from their fellow competition. Whether or not this model of secrecy needs to evolve into a more open dialogue is continually up for debate. For now though, the higher up the art and antiques “food chain” you go, the less likely you’ll find accessible commentary about their dealings.
And let’s not forget, the ultimate goal of retailers is naturally to sell. Therefore, they have an inherent bias when it comes to answering what’s it worth. The main incentive for providing valuations is the hope that you will buy and/or sell with them in the near future – plus tell all your friends and family to do the same. Those working in the retail business are less amenable to cold calls from those who are “just curious.” This remark is not to discourage you in reaching out but rather to be forewarned if you come across a reticent demeanor.
To better your chances in having a retailer respond, search for one who specializes in the niche category that relates to your piece. If unwilling to quote an estimate, they may be able to direct you to someone who can.
Auction Houses
Christie's Auction Rooms from Microcosm of London, pl. 6
Designed and etched by Thomas Rowlandson (British, 1757–1827)
Aquatint by John Bluck (British, 1791–1832)
If your objective is to sell your item or collection in the near future, then contacting auction houses may be an ideal option. They often give complimentary, pre-sale estimates for items they have interest in consigning for upcoming sales. These estimations can be good indicators for current demand and at what price point.
However, estimates can also be used more as a marketing tool rather than an accurate assessment. It used to be that an auction estimate was an educated prediction of the sales result falling within a particular value range. But these days, each company has a different attitude towards handling estimates, which may even change depending on the sale.
For instance, let’s say an auction house wants to report a high percentage sell-through rate in their next press release. The likelihood of attaining this goal increases if all the estimates are intentionally lower than what the lots are expected to achieve at hammer price. The risk, of course, is that some lots may be sold for a much lower value, much to the disappointment of the consignor and delight of the buyer. Another technique is that they initially quote a high estimate to win a consignment and then wait a week before the sale to obtain permission to reduce the estimate range (the same can happen with reserves).
Curious to learn more about auction terminology? Read “Auction in Translation: Terms Commonly Used”
Like retailers, auction houses are biased when providing their value opinion. The good news is that they usually want to sell for as much as possible, just like you the consignor. However, they also want to move on to the next sale and don’t have the luxury to wait for the perfect buyer to come along and pay top price, unlike a retail environment.
Detail of The Merchant and his Accomplice Carry Away Goods
Folio from a Kalila wa Dimna, 18th century
Attributed to Egypt or Syria
Ink and opaque watercolor on paper
Source: Metropolitan Museum of Art, New York
Auction houses prefer to let the market “speak for itself” in determining what something is ultimately worth in a given moment. In other words, value is determined by what the item sells for. This concept is somewhat plausible, assuming you have knowledgeable buyers and sellers neither of whom are under compulsion to buy/sell and have reasonable understanding of the object’s characteristics. It also assumes that everything goes well the day of the auction – i.e., the internet bidding platforms are working correctly, the known collectors of a particular category are attending the sale, the lot’s confidential reserve isn’t too high to appease an unrealistic consignor, etc. That’s why it’s helpful to look at multiple comparable examples in the appropriate marketplace to observe trends. By taking a sales comparison approach, you are more likely to have a better assessment of value before the transaction takes place. Some auction specialists perform this preliminary analysis better than others.
So what happens if no auction company is keen to help sell your item? Well, it may be an indication that your object is of more modest value in the current market. Auction houses typically will accept property that meets a minimum value threshold that can cover the business expense of selling the piece (e.g., cost to catalog, photograph, advertise, etc.) and still make a profit for all involved. For instance, a reputable regional auction house may have a minimum value of $3,000 per item. The exception to the rule is that they’re willing to take lower-valued property if it’s part of a large estate or collection so that they can acquire the big-ticket pieces. If you receive no response from your inquiry, which unfortunately does happen, perhaps you need to look at a different tier of auction houses that handle more modestly valued items.
You may also consider working with an independent consultant, especially if you would like guidance in navigating the somewhat idiosyncratic auction world. Such services should be performed by an art or collectibles professional in the role of a consultant or advisor and not an appraiser.
At any rate, reaching out to auction houses can be a productive way to gauge market interest and potentially sell your property. If possible, obtain a few proposals from several companies and determine which venue is the preferred situation for you.
Estate Sale Companies
A True View of a Trading House of a Yokohama Merchant, 1861
Utagawa (Gountei) Sadahide (Japanese, 1807–1878/79)
Triptych of woodblock prints; ink and color on paper
Source: Metropolitan Museum of Art, New York
If you are looking to sell a house full of contents, then you may want to reach out to an estate sales company in your local area. These businesses specialize in disposing of a large quantity of items within a short timeframe. However, they typically won’t begin quoting the price of items until you have hired them.
Estates sales are an especially welcomed option for those overwhelmed by the burden of so many items to sort. “Do I keep, sell, or donate?” – That is the question repeatedly asked when transitioning a large amount of goods into the next phase of life. For people downsizing or inheritors, using an estate sale company can help alleviate the organization and manpower needed to sift through belongings in a short amount of time. From pots and pans to baby grand pianos, they will work with you to quite literally move things along.
The knowledgeableness of professionals working in estate sales differs for each individual. Some may be skilled in identifying and valuing quality art and antiques. And others, well not so much. Occasionally, a few “treasures” may become sleepers for the savvy shopper to find at a bargain. Do your background research when selecting a company to find a collaboration that works well for you and maximizes the property’s worth within the restricted timeframe.
Like auction houses and retailers, estate sale companies also have an implicit interest in the outcome of the sale. They typically receive a percentage of the sales commission as part of their service to you the client. However, they are often working under a quick turnaround time with only a few days to sell property. As a result, items are priced closer to a liquidation value and are often discounted as the days go on.
As you can imagine, there are pros and cons to an estate sale. As long as you are aware of the circumstances surrounding (e.g., from what property they are familiar with, commission structure, and timeframe), it can be the preferred choice. Read more about some initial steps to take in the article “Before You Have an Estate Sale.”
“Appraisal Day” or “Appraisal Event”
A Goldsmith in his Shop, 1449
Petrus Christus (Netherlandish, active by 1444–died 1475/76 )
Oil on oak panel
Source: Metropolitan Museum of Art, New York
Occasionally, you come across local happenings called “Appraisal Days” or “Appraisal Events.” These are typically fundraisers in which auction specialists or appraisers will sit at long tables as people bring in items to receive off-the-cuff insight, even sometimes quoting a value. While these professionals tend to have more advanced knowledge in the objects presented to them, they’re often constrained in the time they have to give you a response. Can you imagine if a specialist took an hour to examine and research each piece brought in? It would take days to get through the line.
I recommend treating these events more as entertainment where you may obtain a useful tip. It can be a fun family outing and a chance to learn more about grandma’s jewelry box. If there is a specific purpose where professional documentation is needed, you should instead hire a qualified appraiser for their time. At the event, you might meet experts with whom you think would be helpful in further investigation. Don’t hesitate to ask for their contact information as they’ll be happy to discuss possibilities post-fundraiser.
Instant or Free Appraisals / Valuations
You may have seen such offerings pop up on the internet when you research an object or artwork. Often these websites advertise free or inexpensive “expert” appraisals. They may even use the magic word of “certified.” But often, you get what you pay for in terms of quality.
Learn more at “ ‘Certified’: Its Real Meaning for Appraisers of Personal Property”
The Pottery Seller
Capodimonte Porcelain Manufactory (Italian, 1740/43–1759)
Model attributed to Giuseppe Gricci (Italian, ca. 1700–1770)
After a print by Simon Guillain II (French, born 1618) of 1646 of a drawing by Annibale Carracci (Italian, 1560–1609)
Soft-paste porcelain, decorated in polychrome enamels and gold
Source: Metropolitan Museum of Art, New York
Their responses are often developed with limited understanding of context and based on image(s) you provide. There is no comprehensive consultation with the client with the chance to follow up with additional questions or an in-person examination of the property. In other words, online-only services are not customized to your needs but rather to fit you into their system.
A natural question to ponder is “If it’s free or so cheap, how do they make a profit?” Usually, the incentive for these online companies is to encourage you to sell or consign with specific venues in which they receive a referral fee or commission. One can view the main objective of most virtual-only appraisal companies is to create a lucrative sales funnel.
They also tend to promise fast results, an appealing feature in our age of instant gratification. However, a speedy answer isn’t necessarily a good thing when it comes to valuation. How much research went into object identification and the current market? Did they select the type of value (yes, there’s more than one – read here) that is appropriate for your needs? Did they explain the approach and methodology used to develop the appraisal? These companies are less concerned with how they arrive at their conclusions, so long as one is provided and you are motivated to sell through a preferred vendor.
And what about the team of “experts” supposedly behind the computer screens? The typical model for the online-only company is to hire contractors with experience in the trade to answer inquiries. The valuer is likely constrained by the short turnaround time and lack of direct connection with you the customer. You may also notice that while instant appraisal companies laud a team of specialists, somehow they are rarely specifically mentioned. Often this is because it’s a revolving door of individuals whose knowledge base differs widely.
So, when is it a good idea to use an instant or free appraisal service? Maybe for sheer amusement, knowing to treat the result tentatively. Or perhaps you’re looking for an initial and affordable step to determine if an item should be delved into further. Just remember that to obtain a thoughtful and professional opinion of value, it will require investment in time and money. Most independent appraisers will do their best to initially assess property to see if it merits their services. If so, engaging a qualified appraiser will be worth the wait and cost in the long run.
Museums and Curators
View of the Nave - Great Exhibition, 1851
J. McNeven, Published by Ackermann
Color lithograph
Source: Victoria and Albert Museum, London
Curators receive a fair amount of requests for value opinions on items related to their field of scholarship. However, the majority of North American museums and cultural institutions follow ethical guidelines in which those who are employed by these organizations are not permitted to provide valuations.
Instead, museum staff will often refer inquirers to the three major appraisal organization (ISA, AAA, and ASA in the U.S.) or perhaps have a list of appraisers they have worked with in the past. Usually, you can find information on their website about suggested resources. In other words, no need to spend your time searching for the email addresses of curators in the hopes they will offer price insight. Respectably, they must remain mute on the subject of monetary value.
In Conclusion
In conclusion, the answer to "what's it worth" is an opinion and not a fact. After all, value itself is an ever-changing and evolving target influenced by a multitude of factors including artist/maker, age, rarity, historical/cultural significance, provenance, condition, buyer demand, and so on.
Thus, value opinions will vary depending on who you ask. That is not to say one type of professional viewpoint (e.g., gallerist, auction specialist, or appraiser) is always correct or wrong. Rather, you must consider the context. The best opinions are ones supported by factual evidence, appropriate research, and reasonable analysis.
To help you in your search for a value opinion, below are a few questions to keep in mind:
Marchand de Bric à brac, 1870s
Artist Unknown
Albumen silver print from glass negative with applied color
Source: Metropolitan Museum of Art, New York
· In what professional role are they communicating their opinion?
· How knowledgeable are they in the type of property you are asking about? Do they have relevant education and experience that informs these observations?
· Are they objective or have a sales bias? In other words, does the respondent have any underlying incentives?
· What are their credentials? Are they accredited with a professional organization or trade alliance?
· If communicating with a U.S. or Canadian appraiser, are they USPAP compliant?
· How much information have you given them about the property and circumstances for valuation?
· Have they seen images and been given details about the property?
· Have they had an opportunity to examine the property in person?
· How much time did they have to research before communicating an opinion?
About the Author: Courtney Ahlstrom Christy is a fine and decorative arts appraiser based in Atlanta. Her interest in offering valuation services tailored to each client’s needs led to establishing Ahlstrom Appraisals LLC, a firm that provides appraisals and consultations. As an ISA Certified Member, an AAA Accredited Member, and USPAP compliant, Courtney is involved in a professional community that seeks higher standards and ongoing inquiry into how to best value personal property. Courtney can be reached at ahlstromappraisals.com.
© Courtney Ahlstrom Christy 2020
The information in this article is for general informational purposes only and is not considered legal or financial advice.