“So what do you do for work?” I am often asked. When I answer that I am a certified personal property appraiser, people either say “You mean like real estate?” or “Oh so you deal with estates and antiques”.
I let them know that they are in the ballpark, but that my actual job encompasses so much more.
The job of an appraiser covers everything except the real estate itself. It deals with all the items within those four walls: everything from knives and forks to that classic car in the garage. However, most people don’t understand the depth, breadth and tremendously varied reasons that people seek an appraisal. So, let’s talk about intended use.
Intended use answers the question: Why is the appraisal necessary? When I started on this career path, sparked by my passion for antiques, I was surprised at the full page of reasons I found listed in my certification materials. Many of them I had never considered. In general, though, I have found that the need for appraisals tends to correspond with major life events, both personal and professional.
Let’s start with what comes to the forefront of most people’s minds: estates or estate planning. Estate planning has to take into account not only the money in the bank, but also other holdings. There are trusts and estates that include tangible non cash assets such as art, jewelry or other collections. If the value of the estate is high enough, the estate itself may be subject to tax.
When a person passes away and leaves their family with a house full of items, what happens?
Those items are not necessarily antique, but they do have value, and that value changes over time. Consider for a moment the gold necklace Grandma wore for her wedding. As the price of gold has shifted dramatically over the past few years, the value of her necklace has as well. And if the precious metals market declines, so too will the value of that same necklace. This is why estate appraisals are often redone periodically. For legal purposes, an appraisal is valid for three to five years.
A person may also stipulate in a will that a non monetary gift be given. Grandpa and Grandma want to leave the heirloom sterling silver flatware set to Suzy, and the classic Corvette to Johnny. Again, it is important to determine the value of that gift because above a certain threshold there could be tax ramifications.
Donations for charity may be a part of the estate process, or they may be related to another major life event such as a move. I have personally appraised items for donations as diverse as medical equipment, pre-renovation household appliances, antique guns and high-end clothing, shoes and handbags.
These types of appraisals also involve the filing of the correct forms with the IRS: specifically, form 8283, which stipulates that items donated over $5,000 must be professionally appraised.
All of this falls under the purview of the appraiser.
What happens when two people decide to get married? Pre-nuptial agreements may necessitate an appraisal to understand an individual’s assets that exist before the marriage. If Peter has an extensive baseball card collection, and Paulette has inherited a Picasso, it would be important to know the values and whether or not to include those assets as marital property or for them to remain separate.
In the case of a divorce, a couple must understand and decide what happens with their shared assets. Those assets may be as mundane as household furnishings, or as unique as a collection of fine wine, a closet full of high-end designer handbags, or walls covered with fine art. Here again, you can see why understanding value is important. And it is the job of an appraiser to impartially determine that value. Oftentimes, both sides hire appraisers!
Another category that is often unrecognized is the insurance industry. Need a rider for that shiny new diamond? Did the movers drop the box with great grandma’s china? What happens to people affected by floods, hurricanes, tornadoes, or fires… all of these natural disasters carry huge costs.
How are those losses calculated?
Who determines the value of the items lost?
What if you were to move across town and the movers dropped your new high definition flat screen television?
The moving company may be responsible for repairing or replacing it. Again, that value is determined by an appraiser.
Personal circumstances are not the only reason an appraisal might be needed. There are business reasons as well. Let’s take the case of Fred and Barney’s barbecue business.
What happens when they decide to retire and dissolve their business, or maybe one wants to buy the other out of that business?
Or worse, what if they go belly up and a bankruptcy occurs?
What is the value of the remaining tangible assets: the grill, freezers, cash register and other components of that business? How can a fair split be determined?
Again, these are questions that call for an appraiser.
Sometimes an appraisal may be desired in the case where a valuable object or collection is to be used as collateral for a loan. It is important to understand the value of the item so the institution or person making the loan is aware of the value of the item that will back that loan.
As the scope of my practice has continued to grow, I have become so much more aware and appreciative of the value of all of the things we cherish, and all the reasons that we might need to better understand that value. And my hope is that now you do as well. And the next time someone tells you that they are a personal property appraiser, you can look at them knowingly and smile.
Anne Hay is a member of the International Society of Appraisers (ISA) who believes passion and compassion are what make a great appraiser. She is a generalist with a broad-based knowledge of antiques, furniture, porcelains, decorative arts, toys, books, and too much esoterica to list. Her specialties include textiles, clothing, costume and Native American jewelry & antique guns.
She provides individual services for charitable donation, insurance claims, estate, divorce, probate, or just information for curiosity's sake.
