7 Characteristics of Diminishing Value

April 7, 2017 | Julie Hall

For many years, I have spoken about the characteristics of value when it comes to our heirlooms and other personal property. Contrary to popular belief, the “age” of an item, is not necessarily the most important characteristic of value.

Appraisers look at objects from many different perspectives; condition, rarity, the market, an item’s desirability, materials and craftsmanship, the artist (if known), provenance/history, quality, style, etc. As you can see, determining a fair market value is NOT as simple as looking on ebay and it is certainly not an asking price or a retail/gallery price. It’s more complex than that.

Most do not realize that condition issues can really put a dent in the value of an item, especially if the piece has been altered from its original condition; painted over, stripped, refinished, married pieces, etc,. all of which have an impact on value. However, there is more to the story on what can have a negative impact on values.

Think “damage.”

Here are some other things to take into consideration when you believe great-grandmother’s curio or desk might be worth a fortune:

1) Moldy/Mildewy = Stinky – Mold and mildew are active fungi and grow in colonies. They reproduce by spores carried by air so it spreads. It not only destroys the material it lands on, it can also cause mild to severe health issues. Many estates are locked up for a long time, whether in storage or a home that has not yet been sold. Often the air conditioner and heat are barely on and the home can take on an awful odor, in storage too. This musty smell takes time to develop and is a sign the piece(s) have been exposed to dampness and active decay is taking place over time.

2) Leaky – Many pieces we find may have water damage from simple water rings to evidence of sitting in water after pipe damage, leaky roof, etc. Water is an enemy to household furnishings and once the damage is done, it is hard to un-do.

3) Mousey/Buggy – In estates, we see what mice leave behind in the way of poop and find bug problems as well. It can range from simple to quite complex. Mouse poop is an extreme health hazard and can cause the Hantavirus which is potentially lethal for humans. Bugs too can cause all types of damage to both wood furniture as well as the home itself.

4) Heat/Cold Exposure – Exposure to extreme heat or cold in the attic, basement, direct sunlight, etc., can have a devastating effect on our belongings. Heat can cause the finish on furniture to “bubble and crackle” and trap dust underneath it once it cools. Heat expands wood and cold contracts it. This would explain why some veneer pops up, falls off or the piece becomes warped with time.

5) DIY Stripping and Refinishing – All of us have the best intentions when it comes to a DIY job of stripping, sanding and refinishing. The problem is most people do not do a quality job (most likely because it is tiring work) and this can have a serious impact on value.

6) Missing pieces – such as finials, relief carving, legs, pieces of veneer, original knobs, etc. If pieces are missing, the value goes in only one direction; down. People who are looking to purchase these items are definitely looking for all original pieces.

7) Something Old, Something New – People can get pretty creative with damaged antiques, especially if a piece is missing or the owner wants to create a different looking piece by adding new legs, a new shelf on top, etc. We see a blending of one piece with another, and often one piece is old and the other piece is newer. To the owner, it looks great. To a professional who is tasked with the selling of such an item, it certainly hurts the value. In the industry, we call putting two or more unoriginal pieces together being “married.” It works for people, but not necessarily objects.

Damage of any kind will hinder the selling price of most items, unless the prospective buyer likes the “look.” Sometimes our clients are a bit shocked when it comes to the seriousness of how much value a treasured piece can lose due to any of these circumstances.

Julie Hall, The Estate Lady®, is the foremost national expert on personal property in estates, including liquidating, advising/consulting, and appraising. http://www.TheEstateLady.com She is also the Director of American Society of Estate Liquidators®, the national educational and resource organization for estate liquidation. http://www.aselonline.com.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at julie@theestatelady.com.

The Real Value of Our Antiques and Heirlooms

May 6, 2016 | Julie Hall

We each have items in our homes that came from a loved one, passed down through the years. To us, these items are special, unique, and valuable. Sometimes, these items are even more special, unique, and valuable because of our feelings towards the loved one who gave it to us.

If you can, place those feelings to the side for a moment. We really need to have a fresh understanding about the market, the economy, and what our heirlooms are really worth. As an appraiser, I come to the table as an objective third party who has the ability to look at items through new, yet somewhat critical eyes, much like a detective.

I see flaws others may not.

I see condition issues others may not.

I see that someone drilled a hole through the bottom of a Ming Dynasty vase because they wanted it to be a lamp (ugh!).

I see that someone uses 21st century screws to reinforce an 18th century piece.

However, there is more to it than that; we must dig a little deeper to get to the crux of the matter.

The truth is that in today’s market, a c.1830s bird’s eye maple English chest will sell for far less than a “Made in China” piece you can buy at Rooms to Go or IKEA. I saw it with my own eyes at an auction recently. The gorgeous English chest sold for $100 and the black lacquer Oriental chest made 30 days ago sold for $350.

WHY?

Gone are the days of truly caring about quality.

dark traditional ornate bedroom

Gone are the days of the younger generations wanting traditional furnishings.

In are the days of how the item looks and functions. Maybe not for all of us. This trend is picking up speed and we see more of it as each day passes. Size and space also enter into the equation, since we are in the middle of a major simplification trend. Both our homes and our furnishings are getting smaller.

I address the older generations when I say this and I hope it will be realized:

Dark brown furniture gives the younger generation the willies just to look at it.

dark heavy china cabinet

Boomers don’t want any more of it, and are trying to downsize and let go of the dark heavy furnishings, as we speak! Being surrounded by heavy, large, dark furniture is not what people want today, let alone my daughter’s generation. She doesn’t want it now and she will not want it later. It won’t pay to pressure her or store items for her.

It doesn’t matter how old it is.

It doesn’t matter what you paid for it.

It doesn’t mean anything to a stranger or the public who come to purchase it.

If we don’t want it and our children don’t want it, others will not want it either.

dark heavy dining room

Of course there are exceptions to every rule and all families are different. But if we dare to peek into the future, what will become of the older, dark furnishings in 2 years? 5 years? 15 years?

Those of us in the industry have seen a steady decline since 2008 so it is no surprise to us. It’s alright that not everyone will accept what we have to say, but at least, listen to the market. It has spoken loud and clear!

Julie Hall, The Estate Lady®, is the foremost national expert on personal property in estates, including liquidating, advising, and appraising. http://www.TheEstateLady.com She is also the Director of American Society of Estate Liquidators®, the national educational and resource organization for estate liquidation. http://www.aselonline.com.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com

Perils of Preposterous Pricing, Part 2

January 28, 2016 | Julie Hall

Older “die-hard” collectors are passing away and selling their massive collections all at once. So who is going to buy all these items? Some will be sold to today’s collectors, though far fewer in number than serious collectors years ago. Hence, these collections are saturating the market, driving prices and values lower. Too much supply, not enough demand.

Let’s return to the seller wanting to sell items they believe are valuable just because mom paid a fortune for them. They believe what they have is special and unique. Most of the time, figurines, china, collector’s plates, glassware, Victorian furniture and the like have saturated the market because millions of our moms and dads are passing away. Boomers are downsizing. Generation X and Y don’t want these items. Millennials are into themselves, not material possessions. These younger generations collect virtually, not materially.

When an heir is looking to sell Lenox, Waterford, Hummel, Franklin Mint, Depression glass, antique furniture, large wardrobes, entertainment centers, and china hutches, the estate experts only have to show how very flooded the market is to get the consumers to understand that these items are now worth very little.

When I look on Ebay and see a “sterling silver lot of 50 grams,” I wonder why on earth one would attempt to sell it for $200 when it would barely get $30 with the current spot price of silver, unless it was a unique designer piece or desirable manufacturer. Asking outrageous prices for items that are clearly not worth it any longer will backfire on the seller.

It is what it is. No expert, myself included, can alter these trends of simplification, downsizing, and squeezing more bang out of a buyer’s buck than we already do. The market is speaking and we need to listen.

Another issue? Many people with a smart phone in their hand believe they are an expert. I can assure you they are not. They just Google over-inflated prices, unless they are wanting to buy. If they are buyers, they search for the lowest possible prices in hopes of getting an item at a small cost. These issues are just the tip of the iceberg for what experts are dealing with as they handle personal property while managing clients’ expectations.

It takes an expert many years to understand trends, observe patterns, know how to maximize value, and offer the best value for the client. Do-it-yourselfers often do themselves a disservice by not enlisting the assistance of a professional who is experienced in all of the above.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

Perils of Preposterous Pricing, Part 1

January 18, 2016 | Julie Hall

Where do people come up with these prices and values? Understanding the difference between what was paid for an item and what you can sell the item for in today’s market is like the difference between buying a new car and selling it used. Depreciation has taken place in most cases. Much has changed in the secondary marketplace. Sellers must realize that there must first be someone who wants the item (demand) in order for it to have and hold value.

People still call my office to inform me of what their items are worth, even though they are hiring me to find out. I don’t normally mind when they say they already know the value because they “found it on the internet.”. Many of them have it wrong or have searched incorrectly. They see an “asking” price – a ridiculously high dollar figure that came from someone else’s head – which is now stuck in their head. They would like to believe and hope that this is the value.

The responsibility for sharing valuation knowledge with clients falls to all estate experts. We have to help clients set reasonable expectations. Some people will heed what we have to say, while others will continue to believe that if it was valuable in 1982, it must be more valuable today. These individuals are in for a rude awakening, resulting in anger and frustration which they will probably take out on the individual selling their items for them.

Who comes up with values? Ultimately, it used to fall on the serious collectors who set trends and values. Marketability and collect-ability are somewhat related. If an item belongs to a category of objects that people desire and collect, then logically that item’s value increases. However, we need to consider that the current market is fairly saturated with many of the collectibles that were highly sought after 20, 30, 40+ years ago, back when our parents’ generation paid top dollar for them.

Older “die-hard” collectors are passing away and selling their massive collections all at once. We’ll look at how this complicates the market and depresses the values next week in “Perils of Preposterous Pricing, Part 2”.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

The Gucci Purse

January 8, 2016 | Julie Hall

My holiday season was filled with the urge to purge. I swept through the house like a cyclone, pulling things out to give away, sell, and discard. My daughter didn’t know what to think and my husband kept asking, “Are you sure you want to get rid of that?” If you feel like your home needs to be on a diet, you know exactly how I was feeling!

Today in our guest closet, I came across an authentic vintage Gucci purse my aunt purchased for my mother when she traveled to Rome about 45 years ago. It was still in the original soft dust cover and is still like new. It is burgundy in color and not really my style, but when mom died, I kept it.

Question #1 … “Why did I keep this?”

As I held it, inspecting its near “mint condition”, I wondered out loud why people hold on to things instead of actually using them. I can hear echoes of mom’s voice saying something like, “Oh, that is a very expensive handbag and I will only wear it on very special occasions.”

That memory led me to question #2 … “Why wait for special occasions?”

Why not throw caution to the wind

and enjoy the heck out of what you have,

regardless of the season or the reason?

When mom was living, it was up on the top shelf of her closet collecting dust. Funny how it ended up on my closet shelf collecting dust. Why would I hold on to things if I get no use or enjoyment out of them?

This brought me to a decision that honestly needed to be made … Will I ever use it, and do I love it so much that I can’t let go? NO and NO.

So the Gucci bag will be sold. Someone I adored kept it and she never enjoyed it. I never enjoyed it either. So this purse has led a very dull life!

Someone SHOULD enjoy it, even if it isn’t me.

In almost every estate I work in, we find the drawers filled with linens and candles galore. One day, my assistant said to me, as we were cleaning out a sideboard full of candles, “Wouldn’t it be a great idea if some of these people actually enjoyed using these things prior to their death? YES, it would; otherwise, what’s the point?

I have come to the conclusion that I won’t miss a thing that left my home in the past two weeks. My home has a new, light feel to it and I am enjoying that sensation.

Now if I would only shed a few pounds myself ….

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

Procrastination is Risky!

November 12, 2015 | Julie Hall

“When the boat reaches midstream, it is too late to mend the leaks.”

~ A Chinese proverb

Mary was 96 years old and had a lovely 3-bedroom home filled with antiques and collectibles passed down from previous generations. With great pride, Mary had done everything right with these heirlooms. She left all items in their original condition (never refinished or repainted them), knew all the history of each piece, kept them out of direct sunlight, and never placed them in her attic.

But Mary made a huge error along the way; she procrastinated about making an estate plan for her personal assets and preparing for her own death. In fact, she didn’t even have a legal will.

I remember meeting Mary about 6 months prior to her passing. Her two children were present, and everyone wanted to know the values of her lovely possessions. The children hoped that my visit would convince their mother of her urgent need to prepare a will, so her wishes would be known and fulfilled after her death. At length, I spoke with Mary about the importance of documenting all her wishes for her children. I shared stories of some past clients who did not plan ahead and what happened afterwards .. usually leaving behind a nightmare for the heirs.

I made the assumption that at 96, Mary had accepted her advanced age and her close proximity to death. However, she had a great difficulty accepting her mortality.

“I do not need a will. I have written my wishes for my children on a piece of notebook paper; that is good enough. If it isn’t good enough, then my kids will just have to fight over it.”

The children looked at me and grimaced. They knew the complications that awaited them if mom did not get legal assistance to prepare her last wishes and plans. These complications can be years of red tape, tremendous financial pressures to settle the estate, family feuds, etc. This is simply not fair to do to children, not to mention it’s a terrible legacy to leave!

What happened with Mary’s estate?

No one ever found her handwritten will on the yellow notebook papers; it became a nightmare for the family. It became a litany of “Mom said I could have this” and “No, she promised that to me.” Mary was wrong in her thought process and her lack of actions to distribute her property the way she wanted it to be. She lost all of that because she did not legally prepare.

Isn’t it interesting that she cared so very deeply for her possessions while she was alive, yet did not have a legal plan for them upon her death?

Mary’s reasons for procrastination will never be known to any of us. Some are afraid of even talking about death. We shouldn’t be; it’s a certainty. The older generation seems to be parted into three groups. Those that are completely prepared, those who won’t even discuss it and leave it all on their children’s shoulders, and those that simply sit on it for years and procrastinate the inevitable. For those in the last two groups, life will be most difficult for your children and heirs.

The good news is there is still time, if you are reading this. Take action today and leave a positive legacy.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

Condition, Condition, Condition

September 15, 2015 | Julie Hall

When it comes to the worth of heirlooms and antiques, one characteristic of value needs to be understood and it’s not how old the item is. It’s condition. Original condition!

We all know what the word original means: initial, first, earliest, the real thing. It means the appearance of an item has been left intact, the way the artist or creator intended it to be in its original state. No stripping, refinishing, repairing, painting, gluing, drilling holes, polishing, lacquering, etc.

Original to a collector wanting to buy a fine item means they prefer it this way. The mellowing of leather or wood that only the passage of time can accomplish to near perfection, which also demonstrates the piece is true to the period, blemishes included. These blemishes are part of the item’s history. If it could talk, the stories it could tell!

Many seem to be of the mindset that if mother’s tables are antique, they are definitely valuable. This is simply NOT the case; please pass the word along! Age is only one characteristic of value. While it certainly can be a contributing factor of value, many other factors are also evaluated when a professional assigns value. Condition is right up there at the top of the list.

I’m called to an estate to see mom’s antiques, but they are in poor or fair condition. They could be covered in years of nicotine, mold/mildew, or have been continually exposed to humidity or cold. Maybe someone painted the primitive table sage green, or cut down the legs of the dining table to make a nice coffee table. All the owner understands is that these items are old and should put considerable cash in their pocket.

An appraiser sees these items are not in good condition, or the original condition has been altered permanently. Getting it back to a “sellable” condition will take a small miracle, not to mention more money than the piece may actually be worth. These pieces can still be sold and a fixer-upper may want them, but at a fraction of the price people have in their minds. The owner of the pieces gets upset because the pieces are not selling for what they perceived they would sell for. I know … it’s a lot to take in!

If you are downsizing or selling the contents of an estate, look at the items from the perspective of an appraiser or personal property expert. Consider all the flaws and permanent alterations to pieces before setting expectations too high. Otherwise, you might be quite disappointed.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

You’d Better Sit Down!

July 31, 2015 | Julie Hall

I can’t stress this enough, though I feel like a nag for repeating it often:

A majority of the time, your possessions are not worth what you think they are worth.

My phone rings each day with dozens of calls. But the calls that always make me pause and take a deep breath are those that start telling me what their possessions, or inherited heirlooms, are worth. In fact, a recent client had a great deal of difficulty hearing the real values of her mother’s possessions. I was afraid she would pass out, so I said, “You’d better sit down!”

Allow me to say this where all can see it clearly, in hope of helping as many as possible.

Internet research of items may be completely useless. Many items are not researched correctly, because the average person may not know the correct name or description for the items being researched.
The internet is only a good tool if you properly search for realized prices, not asking prices. Realized prices are what an item sold for. That’s the only figure used to determine fair market value. Someone can ask the sun and the moon for an item; the asking prices on websites are insanely high. One is left to think those items will NEVER be sold at that price in this market.
People hear what they want to hear. Many do not listen, even to an expert. They see a “price” on the internet for $650 and by golly, that’s what their item is worth. No, it’s not! This particular item may actually be selling for $75, making the fair market value $75, not the figure they saw. Sadly, some people are so anchored to their possessions they will not heed the sound judgment of professionals who do this every single day.
Family lore: “The fish you caught was HOW BIG?” All our parents told us for decades that certain pieces were “extremely old and valuable.” Remember, until a professional examines them, conclude that the pieces were cherished by your parents/grandparents, but still may not be worth much. Keep your expectations in neutral. Most of the time, these pieces have more sentimental value than actual value.
The price paid for an item has nothing to do with its value in today’s market. “I paid $5,000 for that.” It doesn’t matter. What does matter is:
1. It is a used item.
2. It may no longer be in style.
3. It may not even be desirable, especially if it’s dark brown or very large (both are out of favor now).
4. No one really wants it.

Try to remember these things brought you or your loved one pleasure. In today’s soft market, there is no way you’ll get thousands of dollars from selling them.

6. Mom collected these for 50 years but they are still not valuable now. We grew up with our mothers drilling into our heads just how valuable her items are, and yes, they were desirable at that time. In the 21st century, homes are desperately wanting to be clutter-free. The younger generations no longer want to crowd furniture surfaces with framed photos, figurines, and paperweights. Boomers are getting rid of these items, hoping to live a simpler life.

The solution to all these problems, and many more, is to find an expert who understands these possessions and the best way to sell them, based on what they know about the market. Always get professional estate assistance before you do anything. Try to be as realistic as possible.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

What Factors Affect Value?

July 21, 2015 | Julie Hall

We want to believe that our possessions have exquisite value and will bring much money one day when we are ready to sell. We are disappointed to learn that the heirlooms of mom and grandmother are not worth much anymore, despite the family lore. What can affect the current value of personal property?

The Economy

If the economy is soft, the values for most personal possessions on the secondary market are going to suffer, like everything else. Today’s trends are all about simplification, so the market is flooding with traditional household furnishings from our homes and our parents’ homes

Market trends

Are the items currently sought after and desirable to have at this time, or are they just good, usable items?

Value

What is something really worth? Not what you paid for it, and not the value on an old appraisal report. Ultimately, it is worth what someone is willing to give you for it. 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.

Popularity and Style

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 and values have changed, along with what’s hot and what’s not.

Changing lifestyles

Traditional, dark “brown furniture” (as it’s called in the industry) does not have the appeal it did for our parents or grandparents. It may be in good condition, but children and grandchildren don’t like the dark brown. They are buying these pieces inexpensively to paint, because the market is saturated with these pieces.

Generational differences

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 and no clutter or knick-knacks. They shop at places like IKEA and Pottery Barn. The Boomer is caught somewhere in the middle, still somewhat traditional, not as much as their parents and not as indifferent as their children.

Junk or something more?

Proper identification is the key. The television shows would have you believe there is treasure in every home or estate. While you may find interesting collectibles, not every home contains a treasure of significant monetary value. Yet, you just never know what you could have in your possession.

Law of supply and demand

This law is always in effect, for everything. Too much supply and not enough demand causes the prices to fall, such as all our older loved ones’ glassware, porcelain, and collectibles. They are in abundance in every household, but few truly want them in 2015. On the flip side, anything in demand but in small supply will usually sell higher, because it’s desired and not readily available. The internet makes 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.

We have little control over most of these factors, but that’s why items are no longer commanding what they used to.

Two recommendations from the expert:

Keep your expectations reasonable.
Hire a professional to advise you on values.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

One Chip Can Do A Lot of Damage

July 15, 2015 | Julie Hall

In my world of personal property, one little chip or ding, fracture or re-glue, can mean the difference between going into the trash or selling it for far less than if it was in perfect condition. As an appraiser, I know that original condition is just one very important characteristic when assigning value.

My entire career has centered around selling items that are in good, original condition — not stripped of its original finish, not repainted, not repaired or refurbished — just plain original condition. That original condition attracts the collector toward the mellowness of color that only the passage of time can create on a beautiful wood piece, imperfections and all. Those imperfections “prove” to the collector’s discriminating eye its true age, and the history and personality of the piece. Worn leather, distress marks, scars from accidents, etc. are all part of the life of our antique possessions before they came to us.

The collector knows some of these marks are positive attributes, but the average person is in search of perfection — perfection of body, perfection of mind, perfection for each facet of their lives.

The truth suddenly occurred to me! We should look at ourselves and each other in the very same manner as that special collector. We are aging; we have earned our stripes. We have gained insight and wisdom through the passage of years. Yet we too have many imperfections: a chip here and there, a few fracture lines, a scar or blemish. We should strive to do our best to live with our original condition for as long as possible.

While one chip can greatly diminish the value of an antique platter, our own self-worth only grows deeper with our well-earned battle scars from a life well lived and loved.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.