No matter how you started collecting, the things you hold dear are priceless to you. You would never dream of parting with the classic cars or antique furniture you’re so proud of, so you’ve never sought an appraisal. However, even if you don’t want to sell, an appraisal is essential for anyone who considers themselves a collector.
These are four of the most crucial reasons you need an appraisal for your collectibles. They could change how you approach your collections and what you decide to do with them in the future.
Their Worth Could Change Everything
Imagine that you have a binder full of trading cards safely stored in your closet. You’ve collected them since you were a kid, so they have to be worth something, right? That’s not always the case.
A professional appraiser will point out which collectibles have value and which don’t. If your collection doesn’t have anything of worth, you can start finding other valuables if you want to make money off them one day. Or, you can keep holding onto your collectibles with the reassurance that you’re doing it for fun.
You Need the Date of Death Value
When a loved one passes away, you might inherit their collectibles. An appraisal will mark the date of death (DOD) value. You’ll need to know that when you calculate capital gains taxes if you don’t want to keep whatever you inherit.
People often pass on jewelry to their relatives. If you’ve inherited such an heirloom, you’ll appreciate how easy it is to turn it around into part of your emergency savings or college fund. Once you get the DOD value, consigning the jewelry could return a more significant profit by displaying it to a broader audience. Partnering with a reputable team of gem specialists might net an even better sale than the appraiser determined.
Appraisals Determine Insurance Options
Every collector needs to insure their valuables, and your insurance options depend on your collection’s worth. A recent appraisal will show insurance companies how much they should offer. If your house catches on fire or gets robbed, you’d get the financial equivalent of your collectibles.
You should also revisit that policy annually to update it. Your collection will rise and fall in value, which your insurance must reflect if something goes wrong.
Selling Is Always an Option
Down the road, you might get curious about posting your collectibles for sale. Even though you could determine their worth based on what’s available on the market, buyers will want proof of their value with an appraiser’s certificate. Otherwise, they might never take your offer seriously and look elsewhere to buy antiques.
This advice is especially relevant if you like to collect valuables and turn them over for a profit. If you don’t plan to hold onto your antiques, you must establish a trusted reputation with potential buyers. A professional appraisal will get that process started.
Find an Appraiser Soon
You never know what life has in store for you. You might keep your collectibles forever or need to sell them during financial hardships. There might also be a buyer willing to pay a large sum if you inherit something rare.
Find an appraiser soon to determine the actual value of your collection. You’ll then be able to make a more informed decision on whether to hang onto it or sell it.