By Rochelle Eisenberg, Antiques and Decorative Arts

What Does it Mean to be an Accredited Appraiser?

The American Society of Appraisers, a non-profit organization, is the oldest multidisciplinary society that educates, tests, and accredits its appraisers. In order to become accredited, a candidate must pass a rigorous series of core courses, as well as other courses involving ethical business conduct and professional appraisal practices.

What is personal property, and why should you have it appraised?

Personal property is defined, quite simply, as tangible, moveable property, be it collectible, utilitarian or decorative. My appraisal company specializes in fine arts, antiques, and decorative arts.

I have discovered that most people do not know the value of their possessions. In fact, most people are richer than they think. Let me give you an example.

I was recently called to do an appraisal of some antique American oak furniture. While I was doing the appraisal, my client told me about some paintings that had been sitting in her basement for years. Because the paintings appeared to be in poor condition and the theme was not to her liking, my client was about ready to throw them in the trash. She felt sure they had little or no value.

But when she showed me the paintings, I immediately recognized that their quality and age indicated a potentially valuable work of art. Upon further research, I discovered the paintings were 17th century Dutch seafaring scenes, which my client was able to sell for a considerable amount of money.

Do you really need an appraisal?

Of course, there are many reasons to hire an appraiser aside from treasure hunting in your own basement. The most common reasons are for insurance, estate planning, and divorce settlement purposes.

Insurance is a very important, and often overlooked, reason for hiring an appraiser. In many instances, the value of fine art, antiques, silver, porcelain, oriental rugs etc. appreciate considerably over time.

In order to protect your investment, you should have an appraisal of estimated replacement value for insurance purposes. You should be aware that most homeowners’ policies cover ordinary personal property only. In most cases, such insurance would cover the upholstered furniture and general home furnishings.

Rare and valuable items are typically excluded, and such pieces must be approved and insured as separate, scheduled items. Fortunately, this type of insurance is fairly inexpensive, usually only a few dollars per thousand dollars of coverage. Appraisals should be updated every three to five years in order to best protect your property and to maintain adequate insurance coverage.

Appraisals are also necessary for estate planning and estate and gift taxation. For example, I have had many clients use appraisals as a guide to help distribute property during their lifetime, or to create legacies under a will.

An appraisal can go a long way in settling disputes among family members. The IRS requires appraisals for gift and estate tax purposes, and also for charitable contributions.

Other common reasons for hiring an appraiser are for equitable distribution in divorce settlements, charitable contributions and to assist in the sale of property.

How does an appraiser determine value?

An appraiser performs a systematic analysis of sales records of objects similar to the item being appraised. Information is gathered from galleries, auction houses, computer databases, and other sources. Ideally, an appraiser will find recent sales of objects very similar to the subject property, thereby providing an accurate measure of value. Sometimes comparable sales records are unavailable. This is where the skill, training, and experience of your appraiser becomes crucial. A knowledgeable appraiser can assess the quality, age, artistic merit, and craftsmanship of property, and analyze this information in order to provide an accurate estimate of value. Even history of ownership, or provenance, can have an impact value. To see this you need look no further the auction of property owned by Jackie Onassis. Many ordinary pieces of property sold for very high prices simply because she had owned them. 

What is an appraisal report?

The product of an appraisal is a well-documented report containing detailed descriptive information about the subject property including a photographic inventory. The description should include the name of the artist or manufacturer, origin, age, medium or materials, provenance, condition, and dimensions. An accredited appraiser will prepare the report in accordance with strict guidelines befitting professional quality work.

Why an accredited appraiser?

An appraiser accredited by the American Society of Appraisers earns the professional designation “Accredited Senior Appraiser” (ASA). To achieve this high level of professional recognition, one must meet many requirements including extensive education and testing, five years of full time appraisal experience, and have samples of work approved. The Society also requires numerous personal and professional references and adherence to strict ethics and professional standards.

Who needs an appraisal?

An appraisal is for anyone interested in buying, selling, donating or insuring their possession, preparing an estate plan, acting as an executor, going through a divorce, or who simply desires the comfort and peace of mind knowing the value of their property.

There are many surprises out there. For example, I recently appraised a print by Charles Yardley Turner. It was worth $ 1,500. However, upon examining the frame, I discovered it was French gold gilt. Much to the surprise and pleasure of my client, it turned out to be worth $ 15,000. So, you may want to check throughout your house, and think about what possessions you and your family have. Are you taking proper care of valuable property? Is it property insured? Do you really know what you have and what it’s worth? You could be richer than you think.

Rochelle Eisenberg, President of ART DIRECTIVES, Inc, Blue Bell, PA is an Accredited senior member of the American Society of Appraisers. She is Vice president and chairman of education of the Society’s Philadelphia Chapter. Ms. Eisenberg is a graduate of the art department of the Barnes Foundation; she has lectured at the University of Pennsylvania and teaches at Temple University. She has appeared on the Discovery Channel program Home Matters and recently participated in the Chubb Insurance Company Antiques Road Show that will be televised next year.