|
FrontRangeLiving.com -> Home Design -> Appraising Antiques
 The popularity of the PBS television show, "Antiques Roadshow" has
nearly everyone wondering if there is a treasure in the attic. If you’ve been
eyeing Aunt Sadie’s pearl necklace or that set of fine crystal, you may have
something of value. How can you find out? We’ve asked Dewey Smith, a Denver
appraiser who is a member of the American Society of Appraisers to reveal who should call in an appraiser--and why. Dewey owned an antique
shop in Denver’s Larimer Square for fifteen years, but now is devoted solely
to appraisals.
FRL: One of the most common questions that readers ask is how
might they find out the value of
something they have inherited. "I have a basement of my father’s
things. How can I find out what it's worth?" is typical. Where do you find the answer
to that question?
Dewey: That’s when you have someone in with an appraisal capacity. It might
be a consultation rather than an appraisal. That’s when we go in and say ‘these
are things under 50 dollars; these are over.’ Of course, you’re looking for
those hidden treasures--the Tiffany lamp or a painting. Having done that, I try
to give people an alternative as to what their options are.
First, you have to find out the desire or intention of the people. That can
be difficult to ascertain because some people are drawn to an obligation to keep
things--or to disperse them. This is, after all, an asset whether the family
members are living or deceased. They may not have an attachment to them. If that’s
the case then they can look at them as an opportunity. Will it provide education
or travel? If so, then maybe that’s something that they need to address. They
need to be honest about that.
Sometimes people in my position can be led astray. When it comes to disposing
of goods, we need to know if they have a long time period and want the top
dollar, or if they want things out by Friday. As an adviser, consultant and
appraiser, I try to give some options as opposed to having someone in to
immediately dispose of those selected items. If you are interested in consulting
first, you can form a plan before selling. Just tell me what you want to do so
that we can address your problems.
We also sign a confidentiality agreement. That’s important when you’ve
been through a person’s home. If someone is famous, well, you’ve seen a lot
of personal stuff.
FRL: What is involved in becoming an appraiser? And what is the American
Society of Appraisers? How does this differ from asking a dealer to look at your
family antiques?
Dewey: To be an appraiser, you have to meet the standards for ASA (American
Society of Appraisers). When it comes to antiques, we’re in a business with no
rules. There is no state certification or standard for people who appraise
personal property items. Personal property is the umbrella that covers all sorts
of items--antiques, automobiles, guns, etc.
However, there is a membership level for ASA that begins on a candidate
level. Those who come forward have to take an ethics exam, which is a standard
for ASA. Here’s an example: charging by the hour as opposed to charging a
percentage of value, which is unethical. Then there is an AM member, (Accredited
Member). This is a person with appraisal experience working toward what we call
a senior membership, which is five years, fulltime appraisal experience.
In addition, there’s an academic requirement to attend and attest to a
four-part study course and exam. Each is three days in endurance and on the
fourth day you have a four-hour test period. At the present time, these are
held in conjunction with universities around the country like George Washington
University, where the staff is ASA appropriate members.
The ASA is a multi-disciplined organization that includes personal property,
automobiles, machinery and real estate. It’s the only appraisal organization
that is a member of the Appraisal Foundation authorized by Congress. They make
the rules. They set the standards. The standard of appraisals today is the
Uniform Standard of Professional Appraisal Practice. That came about because of
the Silverado debacle (a banking scandal). That centered upon real estate. When
you provide a price, in default you have provided an appraisal, but not one that
meets USPAP standards. USPAP has 17 points that you have to cover in your
appraisal. Some are simple; there is a checklist.
FRL: How do you find a price?
Dewey: There are three levels that I use. One is replacement value. That is
for insurance.
Then there’s fair market value, which is the only appraisal definition
defined by the government. That’s often for divorces, anything that is for
legal purposes such as bankruptcy or estates. That’s what’s called willing
buyer, willing seller.
We all understand that when you give something away you want the value to be as high as possible.
When it comes to paying taxes you want it to be as low as possible. But the IRS
is very clear on this: if I was inspected and if I am found to be wrong, I am
liable to be fined $1,000 on each item. The big abuse on this is usually with
artwork.
Finally, there’s marketable cash value. That usually has a trigger on it.
So if you called me in and said, "I want you to sell everything in my house
by next Friday, what’s it worth?" That’s a big deal. That happens under
divorce or estate situations. I’ve seen people who have three days left to pay
next month’s rent. They may sacrifice thousands of dollars. We understand
that.
Time is one of the most important things in the market; the other is finding
the appropriate market. Like with African masks—you have to find the right
market. The item may have to leave the area. Denver is not a big area for
seascapes. You’ll have go to the coasts.
FRL: What is Colorado a good market for?
Dewey: Denver is a turn-of-the-century town; so it’s Victorian. Victorian
oak and walnut, the Denver Squares, then you do move into Arts and Crafts with
that, too. I like to say that in Denver, for another 100 dollars, you can buy
another hundred years. If you had to pick up one date in this business, it’s
1880. That’s when we began to develop the middle class. That’s when all that
movement came from places like Iowa and Kansas. It’s also good for Depression
glass.
FRL: Are there some collections that hold value through the years more than
others?
Dewey: I’m an interpreter of the market. What people want and buy and sell
and trade is out there and collectors make their own market. That can change
dramatically. We had an occasion for a divorce action with about seven different
categories of property. There was such a significant number in each category
that the commercial viability would have been expensive. In looking over that
ten-year period, at best they remained even, most were less, most depreciated as
opposed to appreciating. The only two things we saw that appreciated was
American Indian art and American folk art, American folk art is over the top.
Collectors make the market. Years ago I was getting more for slot machines and
roll-top desks. As an example, when China opened up that began to depress Chinese
things; what once was available only to a few is available to all now.
FRL: What about precious items?
Dewey: Like diamonds, gold, silver? Gold was once $850 dollars an ounce; it’s
now worth $418. You’re talking about items that can be controlled and
manipulated. You’re into a commodity; it’s like oil.
FRL: Are there other burning issues?
Dewey: Is it real or reproduction? You’ve got to talk to somebody who knows
what they are talking about--an expert or specialist. If I’ve got good
textiles or Native American stuff, you have to find the right person. Sometimes
I have to go outside my market because some areas are controlled by a very few
people. There’s no clearinghouse for specialists but it’s filled with
dedicated, passionate individuals. The best thing is just to ask around. My five
rules that apply today are that you have to be comfortable with that person. You
want to deal with someone who makes a living in that business. Look at their
facilities and services. What does their shop look like? Look at their
credentials and look at the cost.
If you’re looking at silver or Early American antiques, go to a specialist. If you look at retail shops as
the bull’s eye, there are some collectibles that never get to the center.
Pickers (people who search out antiques in thrift stores or garage sales) out
there are getting them to private collectors. When I was buying from England the
pieces were probably handled seven times before they got here.
FRL: Is there anything that you particularly love?
Dewey: What I like to deal in is real things. For instance, most who deal in
art want to collect original art. Why buy a reproduction when you can have the
real thing?
FRL: Any advice or caveats?
Dewey: Sometimes collecting is from the school of hard knocks. But there is a
learning curve. Look at who you are today and where you were a year ago. That’s
one thing that I think most people don’t allow--commitment. When I had a
retail store in Larimer and a person would come in and ask about silver, I knew
he was collecting American or English from 1840 or prior. It’s quality versus quantity. Do you own a lot of comic books worth a buck or the first Superman
comic book? People are very focused who have great collections.
According to a national magazine, next to drugs and counterfeiting, the biggest rip-off is
art. When I
look at old furniture, seventy percent isn’t legit. When you have people
representing something, it’s because that’s what they were told. And that’s
what they wanted to believe.
FRL: How can the average person research what they’ve got?
Dewey: Right now the Internet is powerful. You can go into a museum anywhere
in the world. Libraries are standard
and most anyone with antiques will have their favorite libraries and will share
that with you. Find those who have a passion in what you love and get to know
them.
FRL: Any last advice?
Dewey: It’s always wise to take an interest in your estate. I’ve only
known five people who have addressed their situation and done something about
it. The rest wait for something to happen. But I have had some couples ask for
an appraisal of their collections so that their children will know what they
have. That way it won’t be put out with the garage sale. Plan now or pay
later; that’s one of the things I tactfully try to tell people. Often there are complex
family dynamics when it comes to estates. And in the end, I cannot protect
people from themselves.
American Society of Appraisers International Headquarters, P.O. Box 17265,
Washington, DC, 20041, 1-800-ASA-VALU; www.appraisers.org
Dewey W. Smith, P.O. Box 2029, Centennial, 80161-2029; 303-930-9899.
|
