What Is My Antique Worth?

Understanding Auction, Insurance and Probate Values.

We’ve decided to do one of these blog things, which is probably good as it gives me an excuse to ramble into the void about topics that I think might be helpful, interesting, or perhaps slightly misunderstood within the art and antiques world. 

By way of introduction, I’ve spent the last twenty years working my way through the ranks of various national and international auction houses. More recently, following the birth of our son — my wife Susie and I started Byatt-Smith Antiques. Whilst we sell antiques, this also gives me an opportunity to talk about some of the things I’ve come across over the years that often cause confusion. And there’s no better place to start than with value — or more specifically, the different types of antique valuations that seem to float around depending on who you ask and why you’re asking.

So, what do we actually mean by ‘value’?

Value is one of those things that sounds straightforward until you actually need it. Whether you’re insuring a watch or dealing with a family estate, you’ll be given a figure. The difficulty is that not all values are created equal, and two valuations for the same object can be very different whilst both being entirely correct.

What an auction estimate really tells you (and what it doesn’t)

Auction value is an estimate of what a specialist believes an item will achieve if it goes under the hammer. It’s usually given as a range rather than a fixed figure, partly because no one can predict exactly who will be in the room on the day, or how bidders might behave. It’s also worth remembering that this figure doesn’t include the various fees that get added on top once the hammer falls.

In most cases, a good valuer will aim to be as accurate as possible, based on recent sales and current market demand. That said, there are occasions where estimates are pitched on the conservative side to encourage bidding. The theory being that a lower starting point creates more interest and, ideally, more competition. It doesn’t always work in the seller’s favour, and if you’re not aware of it, it can come as a bit of a surprise when something sells for less than you had hoped. Broadly speaking though, auction value is best thought of as a baseline — a reflection of where the market currently sits.

Why buying from a dealer costs more — and why that’s not the whole story

One of the things I used to hear regularly in the sale room was some variation of “dealers are so expensive, why wouldn’t you just buy everything at auction?” And on paper, that’s a fair point. You can often buy furniture or objects more cheaply at auction than you can from a dealer. What tends to get overlooked is everything that sits behind that price difference.

When you buy from a dealer, you’re not just buying the object itself, you’re buying their experience, their eye, and the time they’ve spent sourcing something that is (hopefully) exactly what it claims to be. You’re also buying convenience. There’s no need to spend evenings scrolling through catalogues, no early starts to get to viewings, and no long drives to auction houses. I cannot tell you the disappointment of seeing a beautiful photo of furniture in an auction catalogue, driving an hour there, only to find the photo must have been taken by David Bailey, as it turns out not to be anywhere close to being as described.

Why your insurance valuation is often much higher than auction value

Insurance valuations are where things often become muddled. It’s probably the most common source of confusion, and the one that tends to cause the most pushback. An insurance valuation is not trying to predict what something will sell for. Instead, it’s working out what it would cost to replace that item if it were lost, stolen, or damaged.

That replacement cost usually includes not just the hammer price at auction, but also any associated fees, and potentially the cost of buying a comparable piece from a dealer. When you factor all of that in, it’s easy to see why an insurance value might be significantly higher than an auction estimate. In many cases, it can be double, and that’s entirely intentional.

Where it becomes tricky is when those two figures are compared without context. I’ve had more than a few conversations with clients who were convinced something was worth far more than the auction estimate suggested, simply because they had recently received a higher insurance valuation. Both figures were correct, they were just answering different questions. What I have noticed over the years (and what one certain mainstream BBC Antiques program does), is that this is often not made clear, or it’s given quickly without explanation. Giving out high values for the sake of TV viewers is great, but when you have to explain to the person on a Monday morning that the chap off the program had given them an insurance value and not an auction value, makes for an uncomfortable conversation.

How probate valuations work (and why they tend to be cautious)

Probate valuations sit somewhere else again. These are used when dealing with an estate, specifically to calculate any inheritance tax that might be due. In this case, the valuation is meant to reflect a fair open market value at the time, which in practice often aligns with the midpoint of an auction estimate.

There’s a balance to be struck here. Values need to be realistic and defensible, particularly if they are ever questioned, but there is also a natural inclination to avoid inflating figures unnecessarily when tax is involved. However as auction estimates are an art rather than a science, these more often or not are kept as low as possible in order to not pay as much IHT. Obviously this is within reason as the tax man will come looking should things look a little too low.

So, what is it actually worth?

More often than not, the confusion isn’t in the numbers themselves, but in what those numbers are meant to represent. The same object can quite legitimately carry several different values at once, depending on the context. Once you get your head around that, you’re already ahead of most people walking into a sale room. And if you’re ever unsure which value you’re looking at — or which one you actually need — we’re always happy to take a look and offer some guidance.

https://www.youtube.com/watch?v=CNIgDOGYcqA