The Personal Property Appraisers Post

By Stephen P. Sweeting, ASA, MRICS

Although it might be a little early to administer last rites, the October 26 bankruptcy of Ritchies Auctioneers in Toronto appears to be the end of the 42 year old firm. I’m not going to go into the contentious reasons behind the insolvency; readers can check the following link in The Globe and Mail for a blow-by-blow account of the firm’s disastrous last few months: Auction house Ritchies forced into bankruptcy. Some of you may recall that I touched on Ritchies’ failure in an August 2009 post exploring how structural changes in the business landscape might affect local fine art and antiques markets. (See: Think Global and Think Local) Ritchies' business troubles first manifested themselves to the wider public when Sotheby’s Canada ended a multi-year auction services agreement with the firm due to the non-payment of consignors.

Ritchies was a quirky regional firm that tended to cater to the lower and mid-level art and antiques market in the Greater Toronto area. But every now and then the small firm scored some real successes that pushed them onto the national and even the international stage. The sale of a remarkable Francois Boucher pastel drawing for a record-breaking half a million dollars was one such foray onto the international stage. And their most recent association with Sotheby’s catapulted the firm into Canada’s top-tier fine art auction market. It was in the Ritchies salesroom that Sotheby’s sold Paul Kane’s Scene In The Northwest- Portrait for CAD $5.1 million including buyer’s premium in 2002. This record price for a Canadian painting sold at auction still stands today.

The failure of a regional auction house is not particularly newsworthy in the grander scheme of the international fine art and antiques marketplace. As most of us know, smaller auction houses both come and go. But as a former cataloger at D. & J. Ritchie Fine Art Auctioneers & Appraisers – the original incarnation of the firm before it was bought by the current owner – I have to admit a little sadness over the troubles and the insolvency. I cut my teeth in the appraisal of personal property at Ritchies and would be remiss in not marking the firm’s passing in this forum.

Appraising Judaica: Following new trends in Judaica Auctions
Posted by Elizabeth Kessin Berman, A.A. A.N.A.

Here's my first posting on issues in appraising Judaica.

It used to be that I would wait patiently for the Judaica auction season and then, after studying the limited objects put up at auction, I would settle down to study the catalogs and the results through the winter and spring. But this year, Judaica auctions continued into the winter and well into the spring. Some auction houses have even started organizing Judaica auctions every other month.

The auction floor has also expanded. Not all of the important Judaica pieces are going to the large auction houses in major world capitals. Smaller auctions houses are attracting Judaica collectors and Judaica collectors are more willing to divert their attention from New York. There are now other stages.

At Skinner Auctioneers in Boston, auctioneers were very pleased with the results of their Judaica sale held in late May. Their website that reports: “Skinner's May 2009 auction of Fine Judaica was a tremendous success, more than tripling the pre-sale estimate and grossing over $1.2 million for just over 200 lots of antique and artisan Judaica. The top lot in the sale was rare and important silver and silver gilt Synagogue Ark-form Hanukkah Lamp, originating in Brody (Galicia), and dated 1787. Auctioned for an astounding $314,000, against a pre-sale estimate of $60,000-80,000.” At Kaminski’s Auctions, located in a suburb of Boston, several Judaica items often appear in each of their monthly auctions.

Just last year a new auction house was launched in Jerusalem: Kedem Auctions is producing stunning catalogs with well written well researched titles. The catalogues are written in both Hebrew and English and they contain a wealth of information for collectors, historians and appraisers alike. Kedem auctioneers are not only up on their research, they are also very ambitious. They are holding auctions every 2 or 3 months. Kedem is also pushing the envelop and offering items that are not your well-known ritual Judaica objects. They are identifying new areas of Judaica collecting. More on this in my next blog.

I’ve also been following several on-line auctions such as Ben Ami Endres and a few others operating as Ebay stores. Additionally, a few auction houses who are principally known for their offerings of Modern/Contemporary Israeli artists are also attaching Judaica objects to their sales. Tiroche in suburban Tel Aviv has several sales of Judaica and these are often included with European decorative arts. Hammersite in Ramat Gan, Israel, also has Judaica lots included in some of their auctions.

(Click Read More below for the rest of the Article)

Posted by Todd W. Sigety, ISA CAPP

Last year for the Appraiser Workshops Blog I found a well written and informative article on litigating insurance claims. Although much was not applicable to the personal property appraiser, within the article was a very good interpretation of the Broad Evidence Rule. The Broad Evidence Rule (BER) in effect states that "every fact and circumstance which would logically tend to the formation of a correct estimate of the loss" may be considered by the courts. It is of course up to qualified appraisers to place a value or multiple values on property based upon the facts and multitude of circumstances.

The Broad Evidence Rule is defined on Forbes' site Investopedia as "A rule outlining the guidelines insurers must go about determining the value of lost, stolen or damaged property. The broad evidence rule does not specify any one method to value any one piece of property, only that the means which most accurately displays the true cash value of the property will be used."  Forbes clarifies the definition with "The broad evidence rule is used by insurance companies to determine the cash value to be paid out to the insured in the event of a claim. As opposed to using the traditional cash value (replacement cost minus depreciation), the broad evidence rule can take into account such factors as the age of the property, its tax value and any possible profits the item may have accrued".

David Maloney in his popular appraisal reference book Appraising Personal Property: Principles and Methodology (page 112) expands on the BER interpretation with  "The Broad Evidence Rule (a.k.a., The McAnarncy Rule) states that there are no fixed or rigid guidelines for the determination of the amount of recovery in case of loss. The two standards normally used (fair market value or replacement cost (new) less deprecation) are merely guides, and are not the sole determination of actual cash value. The rule allows for consideration of all the facts and circumstances (such as degree of obsolescence at time of loss, property has no market value-in-use, profitability, owner's opinion of value) which logically tend to develop a correct estimation of value of the destroyed or damaged property for the purpose of ascertaining the actual cash value at the time of loss or damage".

Because of the wide spread acceptance of the BER by the judicial system, much is left open to interpretations by the court. The BER has been viewed as both a positive and a negative in settling insurance claims. In any event, appraisers working on insurance claims should be aware of and familiar with the BER and how it is applied. The following excerpt on the BER is an excellent starting point. It is a good addition to what is typically found in personal property appraisal theory and methodology texts as it is written by attorneys.

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by David J LeBeau MFA AM(ASA)USPAP(06)©2008

The Newark Museum in Newark, New Jersey presented an exhibition entitled "Century of Revivals, Nineteenth-Century American Furniture from the Collection of The Newark Museum" (September 26, 1982 - July 5, 1983). The curator of that glorious exhibition was Mr. Ulysses G. Dietz. In his commentary printed in The Newark Museum Quarterly (Pg. 7, Vol. 31, Nos. 2-3-Spring/Summer 1980), Mr. Dietz states that, " ... By the beginning of the nineteenth century, however, a more literal approach to borrowing from the antique was taken, and the Empire or Regency styles of the early 1800s constituted the first of the new revival styles:” He goes on to say. " ... Revival styles in American furniture shared a common basis: All were in some way romantic evocations of past eras literalized in wood and fabric."

Indisputably, the most visible and influential figure of the latter half of the 19th century was Queen Victoria. Alexandrina Victoria was born May 24th, 1819, and upon the death of her uncle William IV in 1837 she ascended the throne of the United Kingdom of Great Britain and Ireland. Subsequently, she acquired the title of Empress of India in 1876 and she died on January 22th, 1901. Her reign lasted sixty three years and seven months, longer than that of any other British monarch to date. The English decorative Arts period centered on her reign is known as the Victorian Period (1837-1901).

It has been the custom, in the professional upscale auction houses of England and the continent, to use the names of monarchs to denote the place and period of origin of an artifact. This was a rather simple and effective method when the objects being discussed behaved themselves and fit neatly into historically recognizable design cubbyholes. However, designs were adopted and adapted from those in use during the reigns of European monarchs, to use in far flung places by many cultures that did not owe allegiance to the thrones of Europe. A piece of furniture that owes its design genesis to an ébéniste or to an author of a book of furniture design published in London must be identified by its own chronological, geographic and stylistic origin. Thus, a dining table constructed in London in the late 19th century would be dated and identified as English by the phrase: "A Victorian Dining Table". However, due to the extraordinarily long reign and the swift adoption of new styles during the period, it is necessary to amend the phrase with the style name of the piece in question, i.e., "A Victorian, Rococo Revival, Dining Table". Furthermore, if evidence exists that conclusively indicates the precise year of manufacture, the phrase should be further amended as follows: "A Victorian, Rococo Revival, Dining Table, 1859". The appellation "Victorian" refers only to the period between 1837 and 1901 and only to the people and places governed by Her Majesty Queen Victoria. Queen Victoria never ruled the United States or any part thereof. Therefore, if it was made anywhere in the United States it is not “Victorian”. The use of one of the revival terms is the correct nomenclature. Thus a piece of Rococo Revival furniture manufactured in the mid 19th century in the city of New York is just that, a New York City piece in the Rococo Revival taste. It is in no way justifiably labeled as “Victorian.” However, a comparable piece made between 1837 and 1901 in the UK, or anywhere else in the British Empire, in fact, is “Victorian.”

(Click Read More below for the rest of the article)

Value…or was that Value?
Tom Helms
Value? Hmmmm… Everyone has some sort of “definition” about value: the appraiser, the state, the federal government, writers of books, virtually everyone and every agency. Only the hardcore purist thinks he or she knows the answer and then there is doubt from everyone else about the purist’s position! It is a confusing world for the layman and at times for the appraiser. But most important: Clients need to know value levels to understand the full impact of “what it is worth?” We must take a stand!

Attached is a short article we use to help explain …….right or wrong, it has worked for us.

The Dilemma of Values
The most common question we are asked as appraisers is “what’s it worth?” A logical question; however, to the appraiser there are different values for the same object, and the answer varies for each value. Confusing?

Most people think that their “Antiques Road Show” item is worth what they hear when the appraiser says, “the insurance or projected auction estimates value for your object is so much”. Wow! I am rich you think….for the moment that is…… until the owner learns the definition of the value given!

Insurance replacement value is the estimated cost that it would take to replace the object with an identical object, or if this isn’t possible, an object with similar qualities and usefulness in a reasonable amount of time. It includes not only the cost to purchase the object, but also the costs associated with finding and obtaining the item at fair market value along with the possible help of an expert, and the necessary costs of packing and shipping, This is the highest value of an item and generally does not represent what the owner could get in cash.

An “auction value estimate” is what the estimator or auction house appraiser thinks the item might bring at a well advertised national or international specialized auction. An average is given. In many cases if the average is not met, the item is not sold and the estimate was not its value for that auction.

Then there is the most common heard phrase: “fair market value”. This is the term associated with the IRS, taxable estates and, at times, estate settlement. The items are not actually sold, but a value is determined by a sale within a general market place. For example, a master artist’s work would not glean the highest value in a local market, but would realize its actual value on the international market. This would be its fair market value.

Click Read More for the rest of the article.

BOOK REVIEW- AESOP’S MIRROR by Maryalice Huggins

Once again the veil has been lifted and the public can peek behind the curtain of the antiques world to view its inner workings in the new book Maryalice Huggins Aesop’s Mirror. From a barn in rural Rhode Island to The Winter Antiques Show, Huggins tells the tale of a large mirror and an Empire sofa as they work their way up the antiques food chain. As a New York City antique restorer with a heavy hitter client list, the story goes deeper. This very personal story that will be a must read for personal property appraisers. It will validate both the highs and lows of our investigations.

In many ways, the book is the ultimate fantasy appraisal, the one we all would like to do if not bounded by time, money and energy. Due diligence directs us to consult experts when evaluating an object and the marketplace. Huggins, an insider, is able to show the mirror, unsure if is it American or English, to a staggering array of big names in the antiques field; John Hays, Luke Beckerdike, The Kenos, Alan Miller, Albert Sack, etc. Equally staggering is the wide variety of opinions and values gathered, many of which were spongy “maybes” and “perhaps” . No one gets by unscathed. This alone is worth the price of the book. She further reveals the little know “blessers” who carry enormous power over the object’s worthiness in the marketplace. These Blessers are often exalted restorers, not scholars who have learned how to wield their power and command fees for the combined result of both gut instinct and experience. As such, they are much aligned, especially by antique dealers who can watch their deals sour at their altars. New collectors and the uninitiated revere their every word and marvel at their staged quirkiness. The truly frightening part is that these many opinions are not written down or attached to the back of the object, so as appraisers when evaluating an object are faced with this shadow history. What if one of the blessers’ has ruled that your appraisal piece is less than it purports and the invisible opinion affects the value, unbeknownst to the appraiser? As we know it happens all the time.

Huggins hooks her audience with discovering the objects in a Rhode Island estate and purchasing it later at a Gustave White auction. In describing the svengali charm of auctioneer Mike Corcoran, she nails him. In capturing his circus ringleader mastery, I was fearful in sharing our beloved local talent with a larger audience. She also captures the rough neck male dealers, as base gamblers, addicted to the “action” of the trade more than honoring the object or building great collections. In the end, it is the auctioneer, Mike Corcoran, with his charm and integrity maintained by hovering just slightly outside of the trade that is the true hero of the book.

(Click on Read More for the rest of the review)

You’re invited to a virtual appraisal birthday party!

Happy Birthday to Brian Kathenes and Leon Castner’s Award-winning, Landmark, Appraisal Educational Seminar. "USPAP - A Personal Property Perspective" is celebrating its 15th birthday.

And all personal property appraisers are invited to the birthday bash celebration.

It’s a free, “USPAP - A Personal Property Perspective” update, live, tele-seminar party with a Birthday Gift for everyone who attends.

“No, we’re not giving away new cars,” says NAC’s Managing Partner Brian Kathenes, “But we know all our appraiser guests will really like their special gift. It’s a party no appraiser should miss.”

The tele-seminar and virtual birthday party will be held on Wednesday, October 21st.
Appraisers can register to claim their free 'seat' at: www.USPAPBirthday.com

“We needed a way of celebrating National Appraisal Consultants’ 15 years of training and coaching personal property appraisers,” says NAC’s Senior Partner Leon Castner.

“We’re hoping to fill up all the phone lines and give our fellow appraisers powerful information that will help them get more high-paying appraisal business along with the latest USPAP updates.”

USPAP – A Personal Property Perspective was a live, on-site seminar designed, developed, and presented by National Appraisal Consultants exclusively for personal property appraisers. It was first presented 15 years ago by Brian Kathenes and Leon Castner, years before most personal property appraisal societies embraced the USPAP standard.

It ran for two years across the US. More than 250 appraisers completed the program and received professional development points and a special NAC certification.

All appraisers are invited to attend the tele-seminar celebration for free (they just pay for their normal long distance charges) but they must register at: www.USPAPBirthday.com

It is difficult to establish the birth of modernism. Most often ‘modern’ is associated with twentieth century design. We tend to think of early examples by designers such as Charles Rennie Mackintosh, Josef Hoffman and Gerrit Rietveld in the years prior to the First World War. In reality, the seeds were planted as early as the mid 1800s with particular designers such as Christopher Dresser and Owen Jones, creating works which sharply stood out from the trends of the day.

Modernism wasn’t a single readily identifiable style, but rather a set of ideas threading together a variety of styles and movements from various countries. Overall, it rejected decoration in favor of abstraction. It streamlined form and pared it down to the essence. But more importantly, it believed in the power and potential of the machine. Designers worked with industrial advancements to help change the world.

Design reform also combined two revolutions of the nineteenth century: industrial and romantic. Design reformers believed the laws of beauty were rooted in nature and a unitary world. Most designers believed that their designs had the power to transform society. That reform could create a sense of social utopianism. Proponents sought to bring forth better materials and aesthetic quality of life for the majority through better design.




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An Artfact representative contacted me at the Appraisers Post and asked if I would promote their special offer to appraisers.  As it is a money saving offer, I thought I would post and remind appraisers of the discount Artfact offers.

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While researching an unusual chair a client had purchased in London years ago (and told at a Roadshow filming, if attributed it could be worth in the mid five figures), I struck up a email "pen pal-ship" with a knowledgeable English dealer/scholar, Paul Shutler. Paul specializes in high end furniture and decorative arts, primarily 19th and 20th century UK. With his permission, I'm reprinting below an excellent, succinct explanation of "rarity," a recent entry on his new blog. Good reminder of the meaning of the word and ranking furniture and decorative arts as we appraise value.

JUST HOW RARE IS RARE

Often my clients come to me for advice when considering purchasing an item from another dealer or at auction. In some cases, they are interested in objects described by the seller as 'rare' or 'extremely rare and highly important.'

So, I decided to include my repeated response in the blog:

Ask the seller why they think the object is rare. In most cases I can explain instantly why something may or may not be rare. Certainly if I was describing something as rare, I would make sure I could do this.

It's worth remembering that if something is rare, it may be simply because the maker decided not to continue making an object because it just wasn't very pleasing, meaning not all rare objects are good objects.

Something might be considered rare because a fixed number of them are known to have been made, but how high can this number go? It is a known fact that Gerald Summers made only 120 one-piece chairs of circa 1933-4. Does this make them rare? It could be considered important given that it's a great example of a chair successfully made using only a single sheet of plywood, no fixings or joints, an industrial designer's dream. (Image from the Vitra Design Museum's book, 100 Masterpieces from the Vitra Museum Collection.)

Questions also need to be asked when dealing with the description important. Being rare doesn't automatically make something important. For a work of art or an antique to be described as important, shouldn't it mean it hah a part to play or was responsible for something of note? A useful example would be Arthur Heygate Mackmurdo's famous mahogany side chairs circa 1882. (One example is in the collections of The Virginia Museum of Fine Arts as well as the V and A museum.) They are universally considered to be important because their sinuous Art Nouveau design pre-dates the Art Nouveau period by a decade.