If you have been putting off getting your art, artifacts, rugs and jewelry appraised for insurance or other purposes, please call Jack Lima of Native American Trading Company (NATC) to set up an appointment at 303-534-0771 or email at firstname.lastname@example.org. We will write up complete physical descriptions, condition reports, photograph the items and determine current fair market value or current replacement values.
Jack Lima, Qualified Appraiser
The appraisal of Native American art and artifacts is a complicated field involving values for purposes of donation, inheritance, insurance, divorce, re-sale, and other situations. It is important that collectors choose trained appraisers who not only are knowledgeable in the subject area, but are honest and highly respected. If these qualifications are ignored, an inadequate or inexperienced appraiser can bring unwanted attention to a collection or item. For example, an overvalued or unprofessional appraisal can be challenged in court and in IRS proceedings.
For over 25 years, Jack Lima has been conducting impeccable appraisals limited exclusively to Native American and Western art and artifacts. Mr. Lima is an expert art historian and anthropologist with in-depth knowledge of the Native art market and extensive experience valuing works of art . In determining an accurate appraisal of Native American art and artifacts, Mr. Lima’s reports are known throughout the Native American arts community for their professional quality. His extensive record speaks for itself: his personal property appraisals for museums and individuals have an outstanding acceptance record with the IRS and have never been challenged in court or by the IRS.
Why are appraisals needed?
An honest and fair appraisal from NATC provides a professional opinion of an item’s value. Knowing fair value guides the collector in determining how to take care of an item, whether or not to insure it, and how much it is worth for re-sale. Appraisal reports are used as proof of value in estate, divorce and other legal cases, and with the IRS and with insurance companies should there be a loss or damage to property.
Having a current and updated personal property appraisal is essential for adjusting insurance coverage on individual artworks or art collections. Current appraisals are needed for insurance claims, estate tax, charitable donations, when selling it, or for equitable distribution. Because there are several kinds of art appraisals, Mr. Lima will help in determining the type of appraisal that fits each client’s needs.
What is an Appraisal?
Appraisals of personal property (i.e. art and artifacts) involve considerably more than a declaration of value useful for insurance, donation and legal purposes. A proper appraisal includes a standard array of features to support the type of values. These features include photography, description, condition, knowledge of current market data and comparables, as well as the purpose of the appraisal. With a consideration of several factors, including fee structure, Jack Lima guides clients to determine their particular appraisal needs.
Steps in an Appraisal
Appraisals from NATC will state clearly the type and purpose of the appraisal. The type will clarify for which they are written. The two primary appraisals are 1) current replacement value, and 2) fair market value. In the first case, used for insurance purposes, the current replacement value is the retail cost that a client would pay for a similar item should it be stolen or lost. In regards to fair market value, the IRS definition is: ‘‘the price that property would sell for on the open market,’’ and is generally lower than current replacement value. In both cases, and following standard procedure, NATC appraisals will state values firmly (for example, $1,000) rather than as a range of values ($1,000 - $1,500).
NATC appraisals follow high professional standards to determine value, beginning with actual physical inspection of the items. Given the importance of physical inspections, the art and artifact appraisals are conducted at NATC or off-site. Clients can arrange for items to be mailed or dropped off at NATC for assessment. All items are insured while on NATC premises. In other situations, for example when collections are vast or contain particularly fragile items, the appraisal may be conducted off-site where the items are housed. Using national museum standards of assessing art and artifacts, the items are described, measured and, if necessary, photographed. The object’s condition, a critical aspect of value, is also based on physical inspection rather than on photography. In addition to the item’s physical description, appraisals from NATC will include an item’s history and provenance (item's origin and ownership history) when available and provided by the owners. This record, often passed down through families, is an important part of an item's narrative history. An object is more valuable when its collection history can be traced and documented. This record is further useful in assessing the authenticity of an item, especially critical in dealing with the validity of Native American art and historic artifacts.
At Native American Trading Company, Jack Lima will set forth the appraisal fee prior to beginning. Depending on several varying factors of the collection, fees will be determined based on time or per item. It is important to note that IRS policy will now disqualify appraisals where fees are based on a percentage of appraised value. The need for high quality digital photography is one factor which impacts the fee structure and time investment. As a cost reduction, some clients are able to supply high quality digital photography for use in preparing the appraisal document. Otherwise, Mr. Lima will utilize his professional digital photography skills in preparing the appraisal. Payment is due prior to delivery of the final, signed appraisal. Lastly, Mr. Lima will sign and date the appraisal to ensure that it serves as a legal document.