The Real Value of Your Antiques and Collectibles

Do You Know the REAL Value of Your Antiques and Collectibles?

First of all, you should know that the word Value has many meanings and they all vary and they are all important, and even crucial when you refer to the Value of your Antique Silver and Collectible Porcelain... or any of your other stuff for that matter.

The Oxford Dictionary says that Value is 'worth, desirability, utility'.

Value is determined by the answers to several questions.

Such as, why do you wish to know the value of your antique porcelain?

You're curious?

Is it for sale?

Do you need to sell it right away?

Do you really need the money, or are you selling your collectibles because you no longer like or need the item?

Are you going to insure them?

Leave them to someone as part of your estate?

Or donate your art collection to a museum?

Each of these situations needs a different type of value. One item can have several different values depending on what you are going to do with it.

Here is a list of Value ranges from the lowest value to the highest value.

Liquidation Value

Fair Market Value

Insurance Value or Replacement Cost

There are several variations for each category but to keep it simple for now, we will deal with only three.

Liquidation Value

When you have to sell some antiques or collectibles or just general stuff, you have a few choices. If you have to sell your items quickly ( you're moving, say, and need instant cash). then you are looking at liquidating them. There are several ways to do this, one of them is to have a sale at your place (also called an estate sale, contents or garage sale).

Your priority then is not so much the value of your stuff or what you think it's worth because of how old it is, who it belonged to, how sentimental it is, how pretty or big it is, but how quickly you can sell and how much you can put into your pocket. It matters little what something is 'worth' at this stage, as the public understands only that you need to sell and they can smell a bargain. So this "Value" my be much less that what your stuff might be "worth". - which the Oxford says means "deserving".

You may decide to liquidate by sending your antiques, collectibles or other stuff to auction. Here, Value can be very different again. It is what the item sells for... that is its value at this time.

The auction house supports a lot of staff, does a lot to get ready for any sale by picking up, unpacking, sorting, and listing. It pays staff to do this and so, it needs to charge for the service it provides you for selling or liquidating your stuff. Typically, an auction house can charge for pick up from your place, and then take up to 30% of the sale. The Value of your stuff is then determined by the audience, the weather, what else is at the same sale, who wants what or doesn't and even the general mood of the audience.

If you are NOT in a hurry to sell, and you know what you have, you can advertise your antiques or collectibles and sell them at your leisure either individually or in groups.

This brings us to Fair Market Value. Fair Market Value is the highest price (in money) that an item would bring in an open and unrestricted market - between a buyer who is willing to buy and a seller who is willing to sell, and who are both (of them) knowledgeable, informed and prudent and who are acting independently of each other.

What that means, is that if you advertise an antique or collectible for sale, and you know what you have, and someone comes to see it who also knows the type of piece you have, and there is no pressure for you to sell or (him) to buy, and the market is open to the public, then the price will be determined between you.

Both Canada Customs and Revenue and the IRS recognize this definition and accept slight variations in wording.

If you decide that you are going to keep your antique silver or collectible carvings, and you think they have a significant value, then you will want to insure them.

This Value is called Replacement Cost and refers to the amount of money the Insurance company would pay you if you made a claim if your stuff were lost, stolen or damaged (depending on your insurance coverage, of course).

If your item is an antique or collectible, it may be difficult or impossible to replace it with one the same. Replacement Cost (Used) is the cost of finding one that is similar in style, size, age, and condition as the original. If it were an item that could be reproduced instead of being replaced, the term would be Replacement Cost (New) and you would be able to have the money to have someone make another similar one for you.

If you decide to give your item to a Museum and you wish a tax receipt for it, or you are going to mention this item in your will for someone special, the value for this would be Fair Market Value.

The question now is, How do you FIND the Value of all your stuff?

If you are donating an Antique, or a piece of Art to a Museum or other institution and wish a tax receipt, or if you wish to insure your collectibles, or leaving some fo them in your estate, you will be required to have these values verified in a written report by a Professional Appraiser.

Here's How to find one. www.isa-appraisers.org