The 2004 Strings Buyer's
Guide lists scores of expert appraisers. You can also search our
online database at www.stringsmagazine.com, or contact a reputable trade
organization to find an appraiser in your area. There are few things
that you should know before asking someone to estimate the value of
your stringed instrument, however. Here are five guidelines:
1. Selecting an Appraiser
Choosing a qualified appraiser
is not always a simple process. It's easier to find appraisers in metropolitan
areas than in rural ones. Instrument appraisers may also be instrument
dealers or makers, or they may be employed at auction houses.
When approaching a dealer
for an appraisal, look for one with a repair department or one trained
in repair techniques—he or she will be most apt to recognize condition
issues that may affect the value of your instrument. Auction houses
with active musical-instrument departments are often a great source
of expertise. Their appraisal departments are well equipped to supply
appraisals that will stand up to the closest scrutiny.
If you live in a region
with no knowledgeable appraisers, you'll probably need to go outside
your area. If this is the case, start the process by sending photographs
first and then shipping the piece to the appraiser. It is always advisable
to select an appraiser who is a member of a professional lutherie organization
such as the Violin Society of America (VSA; www.vsa.to)
or American Federation of Violin and Bow Makers (AFVBM; www.afvbm.com),
or a professional appraisal organization, such as the Appraisers Association
of America (www.appraisersassoc.org).
2. Types of Appraisals
Verbal: If you're
simply curious about the value of an item, a verbal appraisal may be
sufficient. Bear in mind that a verbal appraisal is just that—an
opinion given only by word of mouth
Written: If an instrument
is to be insured, a written appraisal is necessary. A written appraisal
is a signed document, desirable (and often required) for evaluation,
and sometimes attribution, of your instrument or bow. The value assigned
in this case reflects the amount of money that would be required to
replace it with a similar piece. Contemporary instruments and bows,
if presented to the appraiser in good condition, are often the easiest
to evaluate for replacement cost. The most common and accepted procedure
is for the appraiser to contact the maker and determine what he or she
would charge for a new work of similar quality—hence the term "replacement
cost."
3. Fees
Ask up front what the cost
of the appraisal will be. An appraisal, whether written or verbal, is
a service performed for you by an expert. Prices vary according to the
region and how competitive the market is. Simple insurance appraisals
are the easiest to prepare, while estate and other legal appraisals
constitute a greater amount of time and research. The charge should
be a flat fee based on the hours spent, in accordance with IRS requirements
that charges should not be based on a percentage of the assessed value.
4. The Appraisal Process
Establishing Authenticity:
Before a true appraisal can be given, questions of authenticity must
be resolved. These issues are answered with widely accepted accompanying
certificates, past appraisals, letters of provenance, and the appraiser's
own expertise. If attribution is not at issue, the appraiser consults
recent market data on similar pieces sold both privately and at auction.
By talking to other dealers, reviewing sales results, and relying on
their own experiences, appraisers can ascertain the replacement price
of a given maker's work in similar style and condition.
Assessing Condition:
The greater the amount of previous repair work, no matter how well executed,
the less value the instrument will have compared to an example in excellent
condition.
Evaluating Cost:
Insurance appraisals are sometimes written ten to 15 percent higher
than fair market value. Most insurers are comfortable with giving the
client that extra cushion of protection, as they are paying for it in
premium costs. They are not, however, comfortable with an item being
overinsured. Appraisals written for estate or charitable-donation purposes
are subject to stricter guidelines and regulations by both the courts
and the IRS. They can be more complicated than other types of appraisals,
requiring documented information as well as verification of the appraiser’s
qualifications and impartiality.
There are two important
criteria for these types of appraisals: The first is the objectivity
of the appraiser. The second is that the item be calculated according
to the Fair Market Value scheme as defined by the IRS. For estate and
charitable donations, all appraisals must be based on comparable sales
results to support the evaluation. This means that the appraiser must
have compiled a list of prices realized for similar or comparable instruments
that have been sold in various markets, and be able to produce it on
demand if your appraisal is ever called into question.
5. The Final Assessment
The finished appraisal should
be clear and concise. It should contain a full description of the instrument
and its condition, detailing any major repair work, and it should be
accompanied by a signed affidavit indicating when the piece was viewed,
by whom it was evaluated, and which method of valuation (insurance value,
fair market value, and so on.) was used.
