So, you’re eyeing that vintage lamp or inherited jewelry and wondering if it’s worth getting appraised? Well, here’s the lowdown on how to decide if something is worth appraising.
First things first – let’s talk cost.
The cost of an independent appraisal can vary. Some appraisers charge by the hour, while others have a set fee per item appraised. Make sure you know what you’re getting into before diving in! In reality, since time is money, the more time an appraisal spends on your appraisal, the higher the appraisal fee will be. The complexity of appraising an item will increase the time required, and the cost to you. If an item lacks market demand (value), the appraisal procedure will take minimal time. This is the time trap for non-appraisers because when their personal market research uncovers very little or no market activity they often assume the item is very rare and therefore valuable. In reality, it is often the contrary – little market activity indicates a lack of market activity or market interest in the item. In other words – no one wants the item. Note – there are certainly exceptions. It is always prudent to consult with an independent appraiser before throwing an item away or including it in the garage sales for dollars.
When determining if something is worth appraising, look at recent sale prices of comparable items. If similar pieces are fetching a pretty penny in the market, it might be worth shelling out for an appraisal. My book Downsize Profitably & Settle Your Estate breaks down the more common items folks possess and what characteristics create interest from buyers (demand), so you can first filter items that should receive your attention and then, possibly, warrant an independent appraisal.
When one asks an appraiser if their item or something is worth getting appraised, if with great confidence the appraiser knows the item lacks market demand (nobody wants it) all the appraisers I know personally, including myself, will indicate the item is not worth getting appraised. That is appraisal best practices and simply the right thing to do. However, it is worth appraising if the experienced, qualified, unbiased appraiser doubts the item’s identity or the current market demand. This could encourage the person to contact many people in hopes of connecting with the professional who has more knowledge than others and can therefore “shoot from the hip,” with the correct answer.
Note – if an appraisal isn’t performed the information is merely an opinion and not an informed (appraisal) opinion. Be mindful of where you save money when making impactful financial decisions.
Remember, the cost of an appraisal is for the procedure itself, not for the value outcome. When you walk out of your doctor’s office with a “clean bill of health,” your thought isn’t to ask for a fee discount or your money back because the doctor didn’t fix anything, instead you expect to pay for the service of an experienced, qualified professional to perform the proper procedure to deliver the most accurate results.
Steps to follow to determine if an item warrants the cost of an independent appraisal:
- Perform market research to see recent sales activity (completed sales) of comparable items.
- If you view impressive sales results of comparable items – consider having an appraisal.
- Contact a qualified appraiser and inquire about their cost either based on time or fee per item.
- Do more than choose the cheapest fee option – consider experience and qualifications.
