Different Values, Same Antique
How can one item have different values? Perhaps you are a devotee of Antiques Roadshow , Find or another show dealing with antiques and collectibles. Sometimes the appraisers will use the phrase”… in my shop I’d price it at…”, or “…I’d insure it for…”, or “…at auction this…would probably go for…” What they are telling the listener is the price you’d pay to purchase the item in a gallery, the value for which it should be insured, and how much the item would bring at auction. There isn’t a single value for antiques and collectibles. The value depends on the reason for seeking the valuation. Let’s examine some appraisal values.
If you want to insure an item, then you need to know its replacement value. There are three types of replacement value. The most common type is replacement value-comparable. The appraiser calculates the cost to replace one item with one of similar age, origin, condition, appearance, etc. within a reasonable time and in a market where the owner customarily shops. If you have appropriate insurance coverage based on written appraisals for major valuables, you will be able to replace that destroyed Federal secretary bookcase with a similar one purchased from a dealer in antique Federal furniture rather than looking for a reproduction at a mass market retailer or going without a replacement because of insufficient coverage.
Replacement Value-Cost New is the cost to replace an item with a substitute using modern materials and technology, etc. that looks like the original and can be used the same as the original. You are getting a new reproduction.
Replacement Value- Reproduction Cost is the cost to construct an exact replica of an item using to the extent possible the original maker, design, materials, and technology. Because of the greater costs this method is mostly used for replacement of unique items such as jewelry.
These values only cover insurance. There are other specific values such as fair market value for charitable contributions, estate taxation, planning and distribution, liquidation values which are required for bankruptcy, and market value when considering a purchase or sale of an item.
At Lohman and Company, our appraisers can help you determine the type of value which is appropriate for your circumstances
How can one item have different values? Perhaps you are a devotee of Antiques Roadshow , Find or another show dealing with antiques and collectibles. Sometimes the appraisers will use the phrase”… in my shop I’d price it at…”, or “…I’d insure it for…”, or “…at auction this…would probably go for…” What they are telling the listener is the price you’d pay to purchase the item in a gallery, the value for which it should be insured, and how much the item would bring at auction. There isn’t a single value for antiques and collectibles. The value depends on the reason for seeking the valuation. Let’s examine some appraisal values.
If you want to insure an item, then you need to know its replacement value. There are three types of replacement value. The most common type is replacement value-comparable. The appraiser calculates the cost to replace one item with one of similar age, origin, condition, appearance, etc. within a reasonable time and in a market where the owner customarily shops. If you have appropriate insurance coverage based on written appraisals for major valuables, you will be able to replace that destroyed Federal secretary bookcase with a similar one purchased from a dealer in antique Federal furniture rather than looking for a reproduction at a mass market retailer or going without a replacement because of insufficient coverage.
Replacement Value-Cost New is the cost to replace an item with a substitute using modern materials and technology, etc. that looks like the original and can be used the same as the original. You are getting a new reproduction.
Replacement Value- Reproduction Cost is the cost to construct an exact replica of an item using to the extent possible the original maker, design, materials, and technology. Because of the greater costs this method is mostly used for replacement of unique items such as jewelry.
These values only cover insurance. There are other specific values such as fair market value for charitable contributions, estate taxation, planning and distribution, liquidation values which are required for bankruptcy, and market value when considering a purchase or sale of an item.
At Lohman and Company, our appraisers can help you determine the type of value which is appropriate for your circumstances