Appraisal Services Are Great But Can Be Misleading

APPRAISAL SERVICES ARE GREAT - VALUATION EVENTS JUST AREN'T FOR ME

THE AFTERMATH OF THE VALUATION - IS OFTEN DISAPPOINTMENT

     EVALUATION EVENTS MAKE GOOD TELEVISION. ISN'T IT GREAT WHEN SOME POOR SOD POSSESSES SOME RARE ANTIQUE PIECE, THAT IS WORTH CONSIDERABLE MONEY? MAYBE IT WAS BEING USED AS A DOOR-STOP OR A BOOKEND, BEFORE BEING PRESENTED, ON INTERNATIONAL TELEVISION, FOR APPRAISAL. WE START LOOKING AROUND OUR OWN ABODES, TRYING TO FIND A SIMILAR "TREASURE," THAT WILL PERMIT AN EARLY RETIREMENT, A PAID-OFF MORTGAGE, NEW CAR, OR SOUTH SEAS VACATION. SOMETIMES THIS UNEXPECTED WINDFALL OCCURS, AND I'VE KNOWN THIS TO HAPPEN TO SOME OF MY COLLECTOR / ANTIQUE DEALER FRIENDS, OVER THE DECADES. I'VE ONLY EVER READ ABOUT, THE UNSUSPECTING INDIVIDUAL WHO HAPPENS TO HAVE A PICTURE HANGING ON THE WALL, AT THE FAMILY COTTAGE, THAT TURNS OUT TO BE A TOM THOMSON ORIGINAL. (CANADIAN LANDSCAPE ARTIST) SELLING A THOMSON PANEL COULD WELL PAY FOR AN EARLY RETIREMENT, OR FINANCE AN ADDITION TO THE OLD RUSTIC COTTAGE, AT LAKESIDE.
     WHAT IS MISSING ON THESE REALITY-STYLED SHOWS, IS AN HONEST BREAKDOWN OF JUST HOW MANY PEOPLE SHOWED UP FOR THE APPRAISAL AUDITION, AND WERE REJECTED BECAUSE THEY WERE TOTING WORTHLESS ITEMS. WHAT IS THE PERCENTAGE OF RELATIVELY WORTHLESS PIECES, VERSUS THE TRULY GIGANTIC OR EVEN MILDLY GIGANTIC GEMS? YOU WON'T FIND THIS BECAUSE THE PERECEPTION THEY WANT TO PRESENT, IS THAT THERE ARE JUST AS MANY WINNERS AS LOSERS, AND THIS IS TERRIBLY MISLEADING. THERE IS A LARGE, LARGE NUMBER OF PARTICIPANTS, WHO ARE INFORMED THEIR PIECES ARE OF, AT BEST, MODEST VALUE, AND NOT PARTICULARLY DESIRABLE IN THE CURRENT MARKET. TO SERIOUSLY REVEAL HOW MANY PEOPLE HEAD HOME WITH HEAVY HEARTS, THE PIECES TUCKED UNDER THEIR ARMS, IN A VARIETY OF BAGS AND CONTAINERS (EXCEPT FOR THE FURNITURE IN THE VAN, OF COURSE), TO BE RETURNED TO THE DOORS THEY CAPABLY "STOPPED" AND THE BOOKS THAT DEPENDED ON THEIR STABILITY, AS "PRETTY ENDS."
     FOR EVERY ECSTATIC PERSON, WHO GETS A BIGGER APPRAISAL THAN EXPECTED, AND POSSIBLY AN OFFER OF PURCHASE AT THE EVENT, HOW MANY ARE, BY DEFINITION, DISAPPOINTED IN THE OUTCOME. WELL, WE CAN'T DO ANYTHING ABOUT THE APPRAISALS, WHICH ARE UNDERTAKEN BY QUALIFIED DEALER / COLLECTORS, WHO KNOW THEIR STUFF. IT IS WHAT IT IS.....AS THEY SAY, AND EVERYONE CAN'T BE A WINNER, OR THERE WOULDN'T BE ANY REAL SENSE OF ELEVATION FROM "COMMONPLACE," AND THE SHOW WOULD BECOME AS ORDINARY AS SOME OF THE ANTIQUES THEY SEE SHOW TO SHOW.

SMALLER APPRAISAL CLINICS DO RAISE HOPES - THAT ARE OFTEN DASHED

     The problem with appraisal clinics, is that they tend to raise hopes of clients, without footnoting, that some times......even a lot of times, the valuations are unattainably high, and the owners are ill informed about what they are most likely to receive in compensation, if selling to a dealer. Or paying in commission, to an auctioneer, off the price attained at the sale. Over the years, I've come upon hundreds of confused folks, trying to sell their antique and collectible items, for the value an appraiser quoted, at one of the traveling clinics, often used as fundraisers for community charities. The idea of an appraisal is fine. The glitch comes when these item owners, who probably don't understand the inner workings of the antique industry, believe they can sell the piece(s) they possess, for the uppermost value. What a huge disappointment it is, when I have to tell them, that the appraisal they received was extraordinarily high, first of all, and that an antique dealer will not pay much more than a third, even as low as a quarter, of the value they place on an item. I don't know many dealers who will accept an outside appraisal as gospel, unless it is in art, folk art, jewelry, precious metals, and jewelry for example (particular furniture is also in the category). If for example, you came into our shop, and showed me a particular painted crock, with a $500 appraisal, I wouldn't even pay a quarter of the appraisal, as is my choice, because I don't sell a lot of crocks.....and never have. So they don't interest me. Now chances are, the dealer who appraised the crock, may have been right-on with the valuation, but that doesn't take into account what dealers are willing to fork-out for these pieces. And it doesn't matter a hoot what the evaluation represents.
     I've had sellers get really angry with me, because I won't buy their newly appraised antiques etc. I try to explain to them that I have no relationship, no business arrangement with the appraisers who do these mobile clinics. I won't ever suggest that someone who plans to attend one of these clinics is wasting money, or that they don't provide some level of service to clients. I think they do. Particularly if they identify an item that had previously been unknown, and as well, provide an evaluation that convinces the patron to seek out additional insurance, or more in-depth research to find the provenance of truly special pieces. My argument generally is with unrealistic evaluations, without making sure each client is adequately informed about the rigors of the industry they plan to approach, to sell their prized possessions. It's a bummer, when these long-faced individuals, stand at the store counter, wondering why we're not all on the same page, when it comes to evaluations. While some sell to appraisers at the events, which is fine, I am suspicious that some of the valuations are purposely set high, knowing in advance, they won't be making any play to purchase. If you're in the antique trade, you've seen and heard the claims, that an antique piece, for example, was appraised at $1,000, but they would be happy to accept only $700. What a bummer all round. I don't want to break anyone's heart but it is impossible to avoid, at times, because these owners have been misled about the popularity of the materials in question.
     There are dealers, beyond the actual clinics, who do this kind of stuff recklessly, and with the intent of blowing-off someone they wish would go elsewhere. When we operated our main street shop, on Manitoba Street, in Bracebridge, I had to deal with this at least once, if not twice every week, and frankly, it made me angry that my colleagues were fobbing-off difficult customers, or ones who simply had no background in antique pricing and acquisition. Their idea, was that Mr. Currie would gladly give you close to the antique valuation, because he was a collector of "boat parts," automotive collectibles," "typewriters," and everything else that, truthfully I had no interest in.....but was being "goosed" by my so-called friends in the business. Well, I'll tell you this much. If anything I took an interest in, during those years at Birch Hollow Antiques, it was making my colleagues, who made such misleading comments, pay for their indiscretions. I took the time with these misinformed sellers....and I mean, a lot of time, to help them understand the dynamics of the antique and collectible market-place, and how we determine, at street level, what is commonplace, and what can be sold for a profit. Ninety percent or more, of the items brought into me, for sale, were actually sub-commonplace, for the time and prevailing trend. I wasn't an international dealer, and if I sold a piece to someone from Europe, or the United States, it was because they walked into my shop, as a tourist to Muskoka. So selling a European antique, with a strong cultural influence, design and intended use, was a waste of money. I tried to explain to each seller, about this range of commonplace, and how the items would sit on the store shelves for months and years, with nary a chance for profit. I found very few who wanted to hear that kind of report, but some actually thanked me for clarifying the situation.
     I believe in appraisals of items, to establish insurable valuations. An insurance evaluation doesn't mean that it will sell for that amount. It is a replacement amount, that you would include on an insurance policy. If you ask a dealer to appraise an item you bring into their shop, there are two valuations. One is a ballpark evaluation, to give you some idea what the piece is, and a value you can attach, for your own knowledge. As most dealers are not licensed appraisers, you can't take this to an insurance company as gospel, of its insurable value. The second and most common evaluation, is the "if I was to buy this piece," amount. Every dealer is a little different in this regard, depending on their area of expertise, and the market for such items in their own shop. If you went to a hundred different shops, looking for the same "want to sell" appraisal, you'd get some pretty wide-swinging numbers, because of our specialities, and expertise. The first number is what the item might sell for in their shop, which you can ask for (just to let them know you're going to check up on them later), and they will then explain what percentage they can afford to pay; a quarter, third or half. I've known plenty of dealers in my time....and I'm sorry to have to point out the rogue element here, who would pay a tenth or less of the value of an item. Most of these dealers would fudge the market valuation, and just offer a buying price, but knowing exactly what they would ask for the piece once the sale transaction is complete. I won't ever do this, without telling the seller, exactly what the selling price will be, if we make the deal. They are invited back to see if I'm telling the truth. I'm not tied to this forever, but I want to keep customers happy with new inventory, and sellers eager to bring more items in the future. This is not an advertisement for our family business. There are thousands upon thousands of wonderfully honest antique and collectible dealers, who have earned fabulous reputations with their regular clientele. It means they've been fair and equitable, and that's what reputation-careful professional do.......when they plan from the onset, to make the enterprise a lasting profession......not a flash in the proverbial pan.
     I've mentioned this in previous antique columns, but it deserves at least one more mention. I had a gentleman phone me one night, to follow-up on a conversation from earlier in the afternoon, at our Bracebridge shop. He had a nicely framed vintage photograph of the members of a Toronto cycling club, from around the turn of the 1900's. It had obviously belonged to one of the cyclists in the group photograph. I don't remember how the young man acquired the large format photograph, under glass, but from the get-go, he was very sure of himself, stating that a dealer he had talked to previously, had offered him five hundred dollars just for the frame. At that time, judging the value of the bike club photograph, and the typical plaster and wood frame of the period, I was suspicious of the offer......I was sure he was fudging the number to impress me. Dealers who have been around the block a few times, don't fall for the vague appraisal, so we have a wide array of counter presentations to offer back, to decline the item in question. The guy was furious at me, for not offering a price well over the five hundred dollars, he had been offered for just the frame. It was an otherwise boring afternoon, so I let the guy spout off, and make whatever claims he wanted. Then I got bored with him, and slightly annoyed, at the way he was making demands, as if I "must" comply with his request, and make him a significant offer. I declined and wished him well on his bid to sell the bike club photograph and precious frame.
     The guy stormed out of the shop, slammed the door, and I heard him talking outside the building, with some of his support crew, who were likely licking their lips, thinking about the jugs of cold draft beer they were going to be able to purchase, when I coughed up the money. You know, the guy phoned me twice that evening, trying to knock the "stupid" out of me, so I would agree to purchase the photograph. The final time he commented on being offered five hundred dollars just for the frame, I interrupted his diatribe with brutish force, and suggested that, "why the hell didn't you sell it to him then, and I would have offered you thirty bucks for the photograph." I heard some foul language on the other end, and simply ended our conversation, which had never, even for a moment, been pleasant. I had toyed with the jerk, and I shouldn't have, because I wouldn't have purchased the item at any price, considering he couldn't tell me where he had acquired it, in the first place. I don't buy anything without proof of ownership. It's that simple.
     I know the importance of appraisals. But the unfortunate reality of some valuations, is that it sends the owner my way, and I'm forced to break the news that the price they were given, is a "best case scenario," and in "a perfect retail world." I will still take the time to explain the fluctuations of the industry, the seasons to sell, and the expectations when selling. It's part of the job to help customers, buying or selling.
     I have a lot of respect for many folks in the antique profession, and even though my comments may be seen as inflammatory, and highly critical of the industry, it is with respect for the historic antique trade, and its traditions, and my own experiences, over more than thirty-five years, that I offer these advisories, as a reminder that we all need to put the customer first.....and there is evidence, profoundly so, that this has become a lesser concern with some vendors. Customers themselves, can go a long way to improving this business standard, by questioning dealers on their pricing, and asking that values be justified. Possibly these requests will be denied, with no validation offered. The choice then, is to shop elsewhere. The best vetting, and policing of the antique trade, will come from knowledgable customers.
     I was antique hunting with son Andrew this morning. What a great recreation...... that is also, happily, our life-long profession.
     Thanks so much for visiting today's blog. Please join me again soon.