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estate appraisals
JimmyJack
Member Posts: 5,401 ✭✭✭✭
What is the best way to come up with an estate appraisal that is fair and not inflated or way out of line? A family member wants to buy the guns, but needs an appraisal to satisfy the estate.
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Sometimes not many are auctioned, or bidding completed. Ive actually tried that route. It works well for common guns that are handled daily however.
That's the case because in many instances, the starting price/minimum bid price is to high. Some of the folks selling guns on the auction live in a fantasy world, as far as the value of the guns they are trying to sell.
If the guns are uncommon and not many show up on the auctions. Best thing to do is to get a ballpark value from similar guns that have been sold on the auctions.
You might also consider posting photos of the uncommon guns on this forum. Many of the folks here have many years experience as gun dealers/collectors. Some guns are so uncommon and rarely sold it's hard to come up with a fair market value.
The best way is to hire a proper appraiser to do that work for you. A local Gunshop may have someone who is also able to do a proper appraisal, that is a service that we had at my old shop. There are also many books that are published yearly with firarms values such as the Blue Book Of Firearms Values and The Standard Catalog Of Firearms. Lastly you can also place photos here and several of us will be able to give a value on that firearm. Those will be your best choice if Rufe-Snow's advice can't be used do to a rare or seldom sold firearm.
+1. Just looking at completed auctions can be difficult -- not only in finding matching firearms, but also finding ones offered in similar condition to what you're trying to appraise.
I'd also suggest that the family member who is interested in buying the firearms make a written offer on what he is willing to pay. The other family members -- without the individual who is interested in buying -- could then seek expert opinion on the value.
If there is more than one family member interested in buying, they each should make written offers, then step aside while the appraisals are done. The highest offer should be taken. If no family member is willing to pay the appraised value, then the firearm should be sold and the proceeds put into the estate.
Sometimes individual family members -- due to some personal interest -- can be willing to pay more than "fair market value" for a firearm; so those funds going into the estate benefits the beneficiaries.
Sometimes individual family members want specific items of the deceased, but simply cannot afford to purchase them from the estate. Those items need to be sold so the other beneficiaries receive fair treatment.
A. retail; what you would expect to pay at a gun shop/ retailer.
b. wholesale; what said gunshop/relaiter would buy it for from you.
c. lot price; what a retailer would pay for a 'bunch' of guns (the good, bad, and ugly) as one 'lot'.
d. what a relative should get as a 'discount', he/she already owns a 'share'.
to get 'top dollar' for anything would involve a lot of work/time/shipping ect. and that should be figured in as well
Take the guns and a copy of your description sheet to several firearm dealers and ask them to list the price they would pay for each of the guns.
The average of the prices (wholesale) is what the estate could realistically expect to receive for each gun, and if the interested party is willing to pay that amount than all parties should be satisfied.
Now is the time to give us a description of the guns, so we can better answer your question. We would likely send you in different directions if the guns in questions are bolt action Ted Williams shotguns, as opposed to cased Lujtics.
Neal
A recent appraisal I did was a collection of about 115 guns for estate probate. I appraised at the value a dealer would be expected to pay for an item. That might be 30% or so below market value. A lower dollar value of the estate is desirable for estate tax purposes.
There are appraisals for other purposes such as insurance, often at inflated values or for personal reason such as 'what can I expect at auction' which is closer to retail, depending on various related factors.
What is the best way to come up with an estate appraisal that is fair and not inflated or way out of line? A family member wants to buy the guns, but needs an appraisal to satisfy the estate.
Finding an appraiser depends on where you are located and what kind of gun collection is involved.
If you live on the East Coast, especially the North East and the guns are pre-1898 (antiques), you won't do better that Herb Glass, Jr. or Vinnie Caponi, Jr. Both have web sites.
If you are on the West Coast, Try John Gangel of Little John's Auction Service in California or Greg Martin, of Greg Martin Auctions, also in California. Both of these gentlemen can appraise both antique and modern firearms, are located in California, and have web sites.