on the mantle, visible to everyone for decades, and no one realizes that the monetary value of this simple piece could be significant.
To establish what has value and what doesn’t, you should invest in a new appraisal written for fair market value, or at least seek the guidance of an appraiser. A formal written appraisal can be beneficial in an estate for equitable distributions between heirs. However, when you are planning to sell these items, the appraised values may have less benefit. The ultimate price at which an item will sell is the price someone will offer you for it. We are currently in a strong buyer's market.
Think of an appraisal as a tool to help guide you, whether you want to keep an item or sell it. It is never a guarantee of what the items will ultimately sell for.
Here, we separate the monetary value from the sentimental value.
Often, children have heard stories passed down through the generations, that great grandfather’s handmade bench is exceptionally valuable because it is at least 150 years old!
On the other hand, families may feel that mom and dad just kept a bunch of junk, only to discover a $60,000 vase in the basement among the myriad piles of National Geographic magazines. This is a true story and a wonderful example of monetary value and why you need an appraiser!
Heirs are often very surprised to learn that the monetary values of their parents’ estates may not be as much as they originally thought or hoped. The average on-site estate sale brings in between $6,000 and $20,000, with the majority being in the $8,000 to $15,000 range. Bear in mind that most families keep the most valuable items, thus bringing down the figures just mentioned. Most people are disappointed at the limited monetary value of the possessions their parents left behind.
Let’s look at some of the factors that influence and affect monetary value.
Chapter 2
FACTORS THAT AFFECT VALUE
What can affect the current value of personal property? Most of these factors we have little control over:
If the economy is soft, the values of most personal possessions on the secondary market are going to suffer, like everything else. Today's trends are all about simplification and the market is flooding with traditional household furnishings from our homes and our parents' homes too.
Is the item currently sought after, and desirable to have at this time, or is it just a good, usable item?
What is something really worth? Ultimately, whatever someone is willing to give you for the item. Here’s where it helps to have a professional who can research your items and guide you towards achieving maximum proceeds. Searching the internet for "values" only produces asking prices, not genuine sales comparables - not what the items actually sold for. Professionals know how to search for your items and what they are currently selling for.
An item may be attractive, but it might not have much value. On the other hand, the most unsuspecting, and often unattractive, items may have more value than you know. Much has changed in the marketplace; people have changed, the market has changed and values have changed right along with what's hot and what's not.
Traditional, or dark "brown furniture" as it is called in the industry, does not have the appeal it did for our parents or grandparents when it was in style. It may be in good condition, but with the Boomer's downsizing at nearly the same time their parent's are passing away, their children and grandchildren are buying these pieces inexpensively to paint because the market is saturated with them.
Grandmother's cherished floral china from the Depression era is completely different from what a 22-year old woman wants today. Generation X and Y want a simple, clean, European look for their homes with no clutter or knick-knacks. They shop at places like IKEA, Pottery Barn, and Crate and Barrel. The Boomer is caught somewhere in the middle, still being somewhat traditional, but not as much as their parents, and yet not as indifferent as their children.
Proper identification is the key. The television shows would have you believe there is treasure in everyone’s home or estate. While you may find interesting collectibles, not every home contains a significant monetary treasure. However sometimes, you just never know what you could have in your possession.
LAW OF SUPPLY AND DEMAND
Here’s a very strong reason why values are what they are. Supply is the number of other similar items currently for sale, while demand is how many people want them. This law pretty much sets the standard for everything, everywhere, and at all times. The secondary market for personal property is no different.
Too much supply of the same or similar types of items found in our homes, combined with not enough demand, will drive the market and price downward. A good example is Franklin Mint collector plates or Hummel figurines. On the flipside, anything in demand, but in small supply, will usually sell higher, because it is desired and not readily available. The internet made the world very small. What used to be rare and hard to find, is now in abundance on all major online auction sites. Suddenly, there are 1,956 figurines just like mom's.
Here’s another good example to help you think about the conditions of supply and demand. Your mother and grandmother probably had multiple sets of china, figurines, Depression glass, painted porcelain, Wedgewood, silver plate, and the like.
