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Chapter 1

UNDERSTANDING “VALUE” AND THE REAL WORTH OF ITEMS IN TODAY’S MARKET

It’s best to begin with what every human being feels and experiences, whether downsizing or handling the estate of a loved one. Emotions are powerful; you feel the tug of nostalgia and the sentimentality of “remember when?” It is in our nature to place a very high dollar figure to mother’s or your beloved items. Is this a realistic view of what "value" is and what can be expected? No, not really.

The crucial first step is to understand different kinds of value and what makes something valuable, or at least of more value than other items. This will help you make clear and sound decisions as you move forward in this process.

SENTIMENTAL VALUE

A piece may not have much monetary value, but it can have priceless sentimental value. This item may mean even more if the loved one who gave it to you has passed away.

Possessions can trigger powerful emotions, both positive and negative. For some daughters, for example, it might be the memory of mom giving you a ring of hers that you always admired since childhood. Mom gave it to you in person; you always remember the smile, the feeling, the hug. This memory is a frozen snippet of time between the two of you and no one can ever take that away. You will have the same emotions when you give your child a possession that is special to you.

For sons, it may be camping or fishing trips during childhood with your dad. Later in life, dad may give you his coveted collection of fishing lures or fly rods. These memories are sacred, because they represent times spent together with dad; the collection now carries that memory.

Not always, but sometimes, these items that are precious to us do not have much monetary value:

Despite your feelings towards them,

Despite family stories, and

Despite how “valuable” mom believed them to be.

Sentimental value may be the highest measure of value for some people. Still when you face the daunting task of downsizing, you may see some dollar signs. It is wise to keep your expectations in neutral; the current market is not as strong as it used to be for secondary furnishings, it may not be the style or color someone is looking for, or others may not see the monetary value that you do in your items.

Recognize that these possessions may have been more desirable years ago than they are today in a very different 21st century market and economy.

Keep what is genuinely precious to you; make peace with letting go of the rest. Exercise careful judgment and restraint. If you’re not careful, you will take away or keep far more than you can store at your home comfortably. Make the best possible choices now.

Bottom line: If it’s special to you or was cherished by a close family member, that’s wonderful, but the dollar amount it may sell for may not equal your feelings for it. This is particularly true when you hire a professional appraiser/estate liquidator, who will know the pricing and values of items. They know the proper methods to objectively research the realized prices for these items.

MONETARY VALUE

Certainly, there can be items of significant value in your home or a loved one’s estate. Most of the time, people don’t even know they possess items of value unless they hire a personal property appraiser to conduct a walk-through of the home, before any decisions are made and before anything is sold, distributed or donated.

Sometimes, an old appraisal done many years ago will surface, yet this is not necessarily an accurate depiction of today’s values. Treasures are found in the nooks and crannies of attics, and in the back of closets, that have been buried and ignored. Some of these could have real monetary value. Other times, it may be a vase on the mantle, visible to everyone for decades, and no one realizes that the monetary value of this simple piece could be significant.

To establish what has value and what doesn’t, you should invest in a new appraisal written for fair market value, or at least seek the guidance of an appraiser. A formal written appraisal can be beneficial in an estate for equitable distributions between heirs. However, when you are planning to sell these items, the appraised values may have less benefit. The ultimate price at which an item will sell is the price someone will offer you for it. We are currently in a strong buyer's market.

Think of an appraisal as a tool to help guide you, whether you want to keep an item or sell it. It is never a guarantee of what the items will ultimately sell for.

Here, we separate the monetary value from the sentimental value.

Often, children have heard stories passed down through the generations, that great grandfather’s handmade bench is exceptionally valuable because it is at least 150 years old!

On the other hand, families may feel that mom and dad just kept a bunch of junk, only to discover a $60,000 vase in the basement among the myriad piles of National Geographic magazines. This is a true story and a wonderful example of monetary value and why you need an appraiser!

Heirs are often very surprised to learn that the monetary values of their parents’ estates may not be as much as they originally thought or hoped. The average on-site estate sale brings in between $6,000 and $20,000, with the majority being in the $8,000 to $15,000 range. Bear in mind that most families keep the most valuable items, thus bringing down the figures just mentioned. Most people are disappointed at the limited monetary value of the possessions their parents left behind.

Let’s look at some of the factors that influence and affect monetary value.