One of the frequent questions I receive from my clients and potential clients is…
“Does my appraisal report guarantee that my item will sell for a specific amount?”
The answer is NO. Hard and fast rule is nothing is ever guaranteed in life, except taxes and death.
There are WAY too many factors that dictate what an item would and could sell. However, the appraisal does provide a “ballpark” estimate of what you would be covered for in case of damage/loss (insurance coverage) or what you would get as a tax write-off (donation appraisal)
Below are just a FEW factors that prevent you NOT obtaining the exact dollar amount on the appraisal report. There are literally dozens more, but I chose 3.
- Time: The appraisal report might be dated September 2019. The item is a 1986 Fleer Michael Jordan RC PSA 10. In May of 2020, the Last Dance aired on NETFLIX and ESPN. This card and everything Michael Jordan related has skyrocketed higher. The item would be worth significantly more today, than it was in September of 2019 when the appraisal took place.
- Venue of sale: There are numerous ways to potentially sell an item. You might be selling the item at a small/regional venue because you are friends with the dealer or auction house. However, this person doesn’t have the clientele nor the background to fully grasp the importance of your item. Therefore, it sells for pennies on the dollar.
- The sports collectibles market ebbs and flows just like the stock market and EVERY other market in existence. Collector desires shift, a player could get injured, there could be a huge discovery/find of what you have so the supply increases drastically, you take a horrible picture of the item which prevents it from obtaining top dollar, you try to sell during a time of unrest/uncertainty in the stock market/world, etc
I recommend getting your items/collection re-appraised every 4-5 years as the market will have shifted and you may be under or over insured for the collection.
Lastly, don’t forget because I am USPAP Compliant, my appraisal report can be used for insurance coverage.
