You can do many things on your own – including selling your own art and antiques. There is nothing impossible about it and it depends upon your time, skill and effort. As in many fields, there is no substitute for years of experience with the objects, markets and methods. So while you can often do things on your own, you might benefit in many ways by hiring others who already possess the expertise to do things on your behalf or assist you with your effort. You could, for example, draft your own estate plan (including wills and trust documents) or re-shingle your own roof, but most of us would avoid doing so because of the complications and risks involved. Selling fine art and antiques is no different.
By hiring Know The Value Inc. you can obtain our skill and assistance with the following: appraisal valuation; value and market assessment; market placement; negotiation of terms with third party sellers; researching and documenting title and provenance; agency representation for direct sale to third parties including dealers and institutions and advice and assistance with property transport, insurance and conservation. If your objects are of less than $2,000 per object value or less than $5,000 in the aggregate, we usually (as with every rule, there are some exceptions) suggest that you work instead with a local consignment center or auction gallery. You might also consider selling the objects on your own by advertising on Craig’s list or eBay. In other words, we prefer to work with clients who have special or advanced needs for advice, insight and assistance.
It is important to bear in mind that our objective, as brokers, is to maximize the net-upon-sale proceeds for our clients. In the process, we attempt to maximize the benefits to the client – whether economic (for example in terms of sale proceeds) or non-economic (for example by saving the client’s time and effort) – so that the client receives a net benefit that is greater than what he or she would have received on his or her own. There is an element of chance in this, of course, but successful projects usually yield sufficient benefit for both the broker and client to make the engagement well worth the additional expense of our involvement.
We don’t know whether we want or need an appraiser or a broker. What is the difference?
An appraiser provides an opinion of value. Having noted that, there are opinions of value that are not “appraisals” as understood and accepted by professional appraisal organizations or provided according to the rigid and rather high standards of the Uniform Standards of Professional Appraisal Practice (USPAP). These are the kinds of “appraisals” provided by auctioneers and dealers. The “appraisals” provided by auctioneers and dealers are opinions of value, but only of the value that they would hope to sell – or be willing to pay – for the object. These “appraisals” are not impartial / objective, because they include an element of self-interest on the part of the party providing the opinion: the auctioneer provides the opinion with the intention of inducing you to consign the object to the auction gallery for sale and the dealer to prompt you to sell the object to him or her. In either case, there is a profit motive that is connected to an interest in the object being appraised. This is a violation of the USPAP rule against any interest - present or contemplated - by an appraiser in the object that he or she is appraising. (It is, in essence, a conflict of interest.) Moreover, “appraisals” of this kind rarely include in-depth market assessment and are usually based entirely upon what the auctioneer or dealer thinks that he or she might obtain for the object – and fail to consider whether it might realize a higher price or net upon sale through another seller or market. (For these reasons it is very unusual for a representative of any auction gallery to refer a seller to another gallery or point of sale where an object might be likely to realize a higher price or net upon sale amount.)
A professional appraisal – USPAP consistent and acceptable to any of the major appraisal organizations or the national standards to which they adhere – requires many elements including an in-depth analysis of the object and markets for the object. It is written, carefully documented, includes consideration of relevant aspects of the object’s quality and condition and arrives at a specific conclusion of value. This is the kind of appraisal that we provide. For many purposes, including legal purposes, it is the only kind of appraisal that is generally valid.
A broker can provide either type of opinion of value. In other words, the value that a broker works with can be based upon a prior professional appraisal or upon a prior opinion of value that is not a professional appraisal as we have now defined it. The broker’s function is to assist the client with obtaining the client’s objective in disposing of the property, whether by sale or gift, and to optimize the benefits of the disposition. The broker's function is, in other words, separate from that of an appraiser. The role of the broker is often much broader than that of an appraiser because it is more than valuation: it can encompass many aspects of selling or otherwise disposing of the property and can include further assessing the value range of an object; understanding and exploring the various possibilities and markets for selling; understanding and negotiating terms within the market (including, for example, terms with auction galleries); and all other aspects of selling the artwork in order to get the best or highest possible net-upon-sale results. It is possible in some instances for one party to be both an appraiser and a broker.
Example: We are often asked to appraise objects for estate purposes. When retained, we provide a professional, USPAP compliant written appraisal. Appraisal clients have contacted us after an appraisal has been provided to ask us to assist with the sale of the property that we have appraised. If there was no contemplated brokerage assistance at the time of the appraisal, we will - in some instances - accept this property for brokerage.
How would we benefit by hiring Know The Value Inc. as an appraiser?
Appraisals are useful and necessary for the following purposes (among others):
● Estate tax determinations in order to meet requirements of Federal and / or State law;
● Litigation support for evidentiary purposes including divorce or property disputes;
● Documentation and independent valuation in order to meet insurance requirements;
● Gift value documentation and determinations; and
● Valuation to assess value range and market range for property that might be sold.
How would we benefit by hiring Know The Value Inc. as a broker?
As a broker, Know The Value Inc. works to augment and optimize the value of your property.
Example: If we think that an object would net $2,000 through a local sale but, if properly placed, net $5,000, we will advise with respect to achieving that higher figure. (For those who question this range of variability, we have many, many stories to tell. The net-upon-sale market range is indeed vast for most valuable property: how, when and where it is sold can be extremely important to value optimization.) As a broker, we assist with all aspects of selling the property. (We've addressed some of these specific aspects in the answer to a prior question. See above for more.)
In other words, we work to earn our commission by supplementing or enhancing the value of what you are selling. In this regard, we provide experience; advice and – depending upon your circumstances or requirements – can perform all aspects of the disposition, whether by gift or sale. In addition, we provide the comfort and security of confidentiality / privacy by acting as your agent.
Can Know The Value Inc. appraise just one object?
Yes – but it often isn’t worthwhile. Our minimum fee is $250 for any appraisal. If an object has sufficient value, it is usually worthwhile. If not, you will have to decide for yourself whether to retain us for the purpose.
Can Know The Value Inc. appraise an object from a photograph?
No. The present state of appraisal practice and technology do not allow accurate assessments of quality and condition from photographs alone. Appraisals from photographs alone are, in most instances and for most purposes, too subjective to be useful or meaningful. With few exceptions (for example, loss by theft, when the property cannot be available for inspection) we must personally inspect all objects that we appraise.
How does Know The Value Inc. differ from consignment centers and estate sale companies?
Consignment centers and estate sale companies offer the ability to sell goods locally. They are often very efficient and know their local markets well (in fact, they are often the most knowledgeable sources for local market information including pricing). They are not, however, experts in assessing and determining value for specialty and premium property and do not offer significant market expertise including broad market knowledge and access. Objects without significant value are often well sold through local consignment centers, estate sale companies and auction galleries. Objects with significant or specialized value are usually better sold in national, international and specialty markets. Know The Value Inc. assists with the sale of art and antiques in national, international and specialty markets.
How does your brokerage service differ from that of an auction gallery?
There are many significant differences between the service that we provide and that provided by auction galleries. Here are three of the most significant:
1. Auction galleries provide estimates of sale value: not independent assessments of value. They don’t need to consider data outside of their own past sale records and anticipated market results. They usually tell you what they think they can sell an object for without considering whether you might sell it for more somewhere else. (Auction galleries rarely provide options or recommend other auction galleries or markets. They are unlikely to tell you if they have no expertise or established price-record for an object of the kind that you are selling.) In fact, they don’t benefit by telling you when and whether you are likely to get more for the property somewhere else. Most importantly, if they do claim to provide impartial valuations while indicating a desire to sell your property, they violate one of the central ethical standards of the USPAP (USPAP requires that an appraiser have no interest or contemplated interest in the object that is being appraised. Consistent with this principle, Know The Value Inc. cannot discuss brokerage representation for objects that we are asked to appraise. If, however, a request for assistance with brokering is made after the appraisal has been completed, we might agree to broker the object as well.) In other words, auction galleries do not have to consider any market other than their own when providing an opinion of sale value. This can – and often does – neglect consideration of the optimal market in which an object might be sold.
2. As brokers, we offer independent information about and access to all markets in which art and antiques might be sold. We are independent – we are not affiliated with any one market (and, for auction galleries, have worked with dozens of galleries at the local, national and international levels) – and assess all markets to help clients to locate and select the one most likely to result in the optimal net-upon-sale proceeds for the object being sold. We might employ auction galleries but often employ other markets and methods as well including private sale to collectors, dealers or institutions. We do not have any preference or need to sell via any one, and have only the objective of maximizing the client’s benefit.
3. Finally, we offer expertise not just in assessing objects and markets, but also in assessing the benefits of other resellers. For example, many auction galleries have contractual terms that are not well understood by consignors. We help with the understanding and negotiation (but not legal practice – subject to review by client’s legal counsel, with which we can work closely when necessary) of terms, working as your agent.
Example: As we have noted, most specialty and premium property is best sold – by “best” we mean sold at its optimal economic value – in specialty and premium markets. While these markets are often auction markets, the auctions that sell these objects best are often not local or regional auction companies. It is quite common, for this reason, for us to accept a range of objects on consignment for clients and to recommend the sale of the objects to or through many auction companies or dealers. A recent Chicago area project is a good example. The clients had a large quantity of household furnishings, artwork and antique garden ornaments. These objects went to five separate galleries to be sold. No one gallery was the probable, optimal point for sale, because many of the objects were highly specialized and valuable and had to be sent – for some, all of the way to England – to be sold at their probable, optimal values. Projects of this kind require in-depth market assessment and a considerable amount of logistics in terms of removal, shipping, insurance and related aspects of disposition. This is the kind of project that we seek and prefer.
When should I use Know The Value Inc.? When should I use a local consignment gallery, estate sale company or auction gallery instead? Are there times when we might use Know The Value Inc. and a local consignment gallery, estate sale company or auction gallery?
You should consider using our service when you have art and antiques that have a possible or probable value of $2,000 per object or $5,000 in the aggregate (total for all objects) or more. If the value is less than this threshold, you will probably find that a local consignment gallery, estate seller or auction gallery will be able to assist you very well. You might also be able to sell less valuable objects on your own by using Craig’s list, eBay or a similar on-line venue. We are interested in high value objects and collections that require significant effort and expertise to appraise and sell. For property that does not require significant effort or expertise, you will probably find that our service is not a good fit and costs more than you are likely to gain by hiring us. Neither of us wants that!
Can you help us to identify items within an estate or collection that should be given special attention and consideration?
We often assist sellers to identify high-end and premium property that we remove prior to selling at a local consignment gallery, estate sale or local auction gallery. In these cases, we assist clients with the identification of objects that will, in our opinion, be better sold – by which we mean sold for significantly better net-of-sale proceeds – by another method or within another market. If you are considering hiring a consignment gallery, estate seller or auction gallery, we suggest that you first call us for a review of what you have. In most instances, high value objects should be reviewed and removed prior to contacting a local seller. (This avoids the complication of annoyance and frustration by local sellers when the higher value items are knowingly excluded. And, of course, our service is confidential – we do not reveal the source of items consigned to us without prior client authorization.)
Can you give some examples of objects that Know The Value Inc. has assisted clients to sell?
We have assisted clients with the appraisal and sale of individual objects and with complete estate liquidations including large and small furniture, artwork and antiques of all kinds and a wide variety of collections. The values have been as low as ten thousand dollars for an estate and several hundred thousand dollars for single works of art. In other words, the range is incredibly broad.
For some specific examples of items that we have identified and / or sold, see the Object Lessons section of this web site.
Does Know The Value Inc. have the expertise to appraise and broker everything? Are there some things that you don’t – or won’t – appraise or broker?
We don’t have the expertise to appraise and broker everything. No one does. The field of art and antiques is simply too vast for any person or organization to know and value it all. We don’t, for example, appraise or broker jewelry. We also don’t appraise most antique Chinese art or artifacts and defer to others when asked to appraise objects in that category. In cases where we are not able or willing to appraise or broker property, we can usually direct clients to those who are able and willing. In such cases, we do not ask for or receive referral or other fees of any kind from the third party service provider.
Can you provide some insight into your fee structure? Can you provide some examples?
We appraise objects on an hourly fee basis regardless of the number of objects (one or one thousand or more). (It is unethical to – and we do not - appraise property on a percentage-of-value basis.)
Example: A client needing an estate (for tax purposes) appraisal of the contents of a large house on the east coast paid a flat hourly fee for the appraisal. The appraisal fee consisted of a flat per hour rate for the week long project. Additional costs included hotel, airfare, car rental and a per diem incidental (food, etc.) cost for two employees.
We also charge an hourly fee for assistance with property disposition other than sale (for example, estate divisions and gifts).
Example: A Chicago client needed assistance with cataloging, valuing and shipping items from a large and complex estate. The items included fragile and valuable items including fine art and antiques and furniture (some of it quite large). The items had to be shipped to five different beneficiaries living in five widely separated areas of the country. We charged a flat hourly fee for our time including that of assistants and a separate fee for the various shipping and transportation companies that we retained in the client’s behalf. (When we retain assistance we do not impose a surcharge or mark-up of any kind upon the assistant’s fees.)
We broker individual objects with a market value of $2,000 or groups of objects with a market value of $5,000 or more (in which case, some individual objects may be less than $2,000 in market value). We broker objects on a commission basis. The commission percentage is negotiated in advance of the representation. Because we work on commission, clients do not have to make cash outlays up front (cash outlays can be many thousands – for large projects, even tens of thousands – of dollars per project) and there is an incentive for us, as brokers, to maximize the value of the objects being sold.
We are often unable to accommodate clients with objects of less significant value due to the constraints and requirements of the market place: it can be cost ineffective for us. In other words, our minimums reflect the value below which we cannot profitably represent a client’s interests.
All of our agreements are in writing.
Example: We assisted clients with the sale of inherited artwork with an aggregate value of approximately $900,000. We received a flat commission upon sale, the commission calculated to include all costs of sale. In other words, the client paid a specified percentage from sale proceeds. If the property had not sold, our cash outlay of tens of thousands of dollars in costs and time – which we undertook at our own risk – would have been unrecoverable. (The point, of course, is that we calculated and assumed the risks – a distinct benefit to the clients.)
Know The Value Inc. accepts all major credit cards for payment of hourly fees. Brokerage commissions are taken upon receipt of sale proceeds.
We would like to hire you. Are you available?
Possibly – but, due to constraints upon our own time and the fact that we select the challenges that we want to undertake, we are forced to decline more offers for work than we can possibly accept. This doesn’t mean that your objects have no value or merit – merely that, in our opinion, we cannot effectively or efficiently represent you in the sale of that property. In some instances we will refer prospective clients to other agents for further assistance.
I have some art and antiques that might have some value. I want to know how much they are worth and how I might sell them. I think that I’d like to work with Know The Value Inc. How do I get started?
All new clients with one (or very few) objects to consider must use our Object ID Form to submit brief descriptions and photographs of each object. You will find the link to the Object ID Form in the column to the left of this note. We will let you know whether we can help you. We will respond to all inquiries. If you are a past client or have been referred by a past client, please call or write directly. You will not need to submit the form.
The Object ID Form is for use by those with one (or very few) objects to consider. For inquiries related to collections or estates, please write to us directly and do not use the Object ID Form.
Institutional representatives including representatives of banks, trust companies, insurance companies and law firms should contact us directly at (800) 737-3705 or by email at steve@know-the-value.com.
