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Chapter 2

FACTORS THAT AFFECT VALUE

What can affect the current value of personal property? Most of these factors we have little control over:

The Economy

If the economy is soft, the values of most personal possessions on the secondary market are going to suffer, like everything else. Today's trends are all about simplification and the market is flooding with traditional household furnishings from our homes and our parents' homes too.

Market trends

Is the item currently sought after, and desirable to have at this time, or is it just a good, usable item?

Pricing

What is something really worth? Ultimately, whatever someone is willing to give you for the item. Here’s where it helps to have a professional who can research your items and guide you towards achieving maximum proceeds. Searching the internet for "values" only produces asking prices, not genuine sales comparables - not what the items actually sold for. Professionals know how to search for your items and what they are currently selling for.

Popularity and Style

An item may be attractive, but it might not have much value. On the other hand, the most unsuspecting, and often unattractive, items may have more value than you know. Much has changed in the marketplace; people have changed, the market has changed and values have changed right along with what's hot and what's not.

Changing styles and lifestyles

Traditional, or dark "brown furniture" as it is called in the industry, does not have the appeal it did for our parents or grandparents when it was in style. It may be in good condition, but with the Boomer's downsizing at nearly the same time their parent's are passing away, their children and grandchildren are buying these pieces inexpensively to paint because the market is saturated with them.

Generational Differences

Grandmother's cherished floral china from the Depression era is completely different from what a 22-year old woman wants today. Generation X and Y want a simple, clean, European look for their homes with no clutter or knick-knacks. They shop at places like IKEA, Pottery Barn, and Crate and Barrel. The Boomer is caught somewhere in the middle, still being somewhat traditional, but not as much as their parents, and yet not as indifferent as their children.

Is it junk, or something more?

Proper identification is the key. The television shows would have you believe there is treasure in everyone’s home or estate. While you may find interesting collectibles, not every home contains a significant monetary treasure. However sometimes, you just never know what you could have in your possession.

Law of supply and demand

LAW OF SUPPLY AND DEMAND

Here’s a very strong reason why values are what they are. Supply is the number of other similar items currently for sale, while demand is how many people want them. This law pretty much sets the standard for everything, everywhere, and at all times. The secondary market for personal property is no different.

Too much supply of the same or similar types of items found in our homes, combined with not enough demand, will drive the market and price downward. A good example is Franklin Mint collector plates or Hummel figurines. On the flipside, anything in demand, but in small supply, will usually sell higher, because it is desired and not readily available. The internet made the world very small. What used to be rare and hard to find, is now in abundance on all major online auction sites. Suddenly, there are 1,956 figurines just like mom's.

Here’s another good example to help you think about the conditions of supply and demand. Your mother and grandmother probably had multiple sets of china, figurines, Depression glass, painted porcelain, Wedgewood, silver plate, and the like.

They accumulated all of these possessions because they absorbed it from previous generations, while acquiring more during their own lifetimes. It was important to them to have these lovely items and they cherished them. But now, the boomer child must contend with more than one generation of possessions.

Their generation was a more formal one and full of entertaining. We no longer have a formal society that dines with sterling or formal china, except on special occasions when we might bring out our own set for holidays or special occasions.

Most serious collectors of your parents’ and grandparents’ era are also passing away, moving residences, and selling their collections. This floods the market further with their massive collections because the younger generation doesn't want them.

The twenty- and thirty-something daughters don’t seem to be very interested in grandma’s traditional or antique possessions, so the demand is low for these items. They may want a piece or two, but there is usually a large accumulation to deal with. They seem to prefer IKEA or cash in hand.

The boomers have full homes of their own as they face downsizing, an empty nest, or approaching retirement. They can’t possibly absorb it all either. They have to figure out how to sell their own possessions, as well as possessions of previous generations.

Many of these types of items continue to flood the market, with the exception of very unique or hard-to-find pieces. The demand is not what it used to be.

Here’s one final example of supply and demand. Two or three decades ago, your parents and grandparents were still collecting, and actively buying “Limited Edition” collector plates, figurines, etc. because it was en vogue to do so. In the industry, these are affectionately called “Limit-Less Editions.”

Everyone bought them because they thought they were going to make a small fortune on these special editions with the passage of time. Sadly, that is not what happened. The manufacturers produced many millions of them, in order to meet the demand. As demand slowed, these overproduced items fell in value. They continue to fall in both demand and value, and today the children are discovering these items are selling for very little.

Parents left these collector plates, etc., as an inheritance. The sad part of this scenario is that our parents genuinely felt they were making sound investments for their children at $29.99 or $39.99 per plate. They spent a small fortune and lost. This is not just about collector plates; this scenario stretches globally with many other types of “collectibles.”

This is one of the most difficult and disappointing lessons for those left behind, those wanting to downsize, and those wanting to sell items. People want to know how something that cost so much now sells for so little.

Bottom line: If there is any good in this situation, let it be that your family members who previously owned these possessions truly enjoyed them. These items brought them joy, even though you must now figure out the best way to let them go.