There may come a time when you are faced either with settling an estate, selling an item or collection, donating your favourite piece of art or simply updating your insurance policy.

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If so, you may have to find an appraiser. But how do you find a good one?

The process of selecting the right appraiser is not easy, and all experts are not created equal.

You cannot go to a single governing body or licensing authority for help. There are none overseeing this field, leaving the burden of due diligence on the consumer to review the appraisers’ qualifications, training and areas of expertise.

In 1989, the Uniform Standards of Professional Appraisal Practice (USPAP) was adopted by the Appraisal Standards Board of the Appraisal Foundation and accepted by Congress. The Uniform Standards are recognized throughout the United States as the generally accepted standards by appraisal professionals.

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The foundation’s mission is to ensure public trust through standards, appraiser qualifications, and guidance regarding valuation methods and techniques and report writing. But the standards are not mandatory — each appraiser can decide whether they will be trained in USPAP and follow its guidelines. It is up to the appraiser and consumer whether the appraiser’s report would need to comply with USPAP.

Given the lack of mandatory oversight, here is what you should review before hiring an appraiser:

• Ask for their résumé and review their formal training in appraisal methodology.
• Does the appraiser follow USPAP, and did they update their training within the last five years?
• What experience does the appraiser hold in appraising your specific type of item? Remember, no appraiser can be an expert in every category.
• Does the appraiser hold designations and membership to professional organizations that offer ongoing continuing education?
• How do they charge? Do they charge per hour or per piece? They should never charge a percentage fee based on the valuation.

Typically, the first question an appraiser will ask is: What is the purpose of your appraisal? This is to determine the type of value definition to use to research and prepare a written opinion of value for each item.

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For the most part, an appraisal will fall into one of the following six D categories: death, debt, damage, divorce, donation, downsizing.

It is important for consumers to take into consideration that appraisers are not authenticators. Appraisers are trained to conduct proper research to determine an unbiased and thoughtful justified opinion on value. They may work with an authenticator if required or needed.

It is important to understand that the person at the local antique mall may offer to provide an appraisal report. However, they may not be qualified and trained to conduct the proper research and to then prepare a thorough USPAP-compliant appraisal report.

Appraisers, depending on the geographic area, typically charge anywhere from $125 to $400 per hour, depending on the level of expertise. Some may have additional fees for a site visit. You should avoid an appraiser who will charge a fee based on a percentage of the item’s value, as this goes against USPAP’s ethical requirement.

You can find an appraiser by consulting the following groups:

ASA — American Society of Appraisers: www.appraisers.org/find-an-appraiser

ISA — International Society of Appraisers: https://www.isa-appraisers.org/find-an-appraiser

NAA — National Auctioneers Association: www.auctioneers.org/find-auctioneer/

In the end, the burden of engaging the right appraiser for your type of item is up to you. Remember to hire a properly trained, USPAP-compliant appraiser who will invest the time to conduct the proper research and documentation to prepare a well-written and comprehensive report that will satisfy the IRS, your attorney or the courts.

Anne Nouri is a Realtor, auctioneer and appraiser with Sorelle Realty at Keller Williams McLean and Prime Auction Solutions.

The post What to look for in a personal-property appraiser appeared first on The Downsizing Coach.

With planning and a few easy steps, the process of downsizing your home can be cathartic and rewarding on a financial and emotional level.

Consider your new space

As you begin the process of downsizing, visit a few smaller properties to give you an idea of how much space your new home may have. It is always helpful to visit staged models or rental properties, as a visit provides design cues created by professionals. Also, print out model floor plans as examples of layout and wall space as you consider which pieces of furniture to keep. Even if you are planning on relocating to a different city, you can still visit models in your current area to provide you with the new scale to help you plan. A two-bedroom home with 1,100 square feet in Alexandria will be similar to a 1,100-square-foot unit in Naples, Fla.AD

Timeline

Set a timeline for your move, only you can decide when is the right time. The next part is where you will need help: interview real estate agents, asking the agent about what items need to be completed in your home to place on the market. Learn the average number of days homes in your community are on the market. While you are preparing your own home for sale, identify where you would like to live and start touring the area.

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Gleaning as much knowledge as you can from real estate experts will give you a realistic understanding of how long it will take to sell your house and how quickly you will have to buy or rent a new one. By asking the right questions and with proper planning, you can easily slash your downsizing timeline to one to three months from the average of six months.

Sort, keep or donated

Allow yourself time to go through items with the assistance of friends, family or a professional. Purchase a pack of assorted colour circle stickers and mark the larger furniture pieces you would like to keep. Label the “keep” items with the same color sticker. Next, go from room to room, creating piles of items you would like to share with family and friends, donate to charity as well as a “keep” pile of items you want to take to your new living space.

Be logical and even a bit ruthless in your decision-making. For example, if you are headed to Florida, do you really need three winter coats and four pairs of boots? Consider the new climate and your new lifestyle. Keep one of each, and share the others.

A checklist for sorting:

Purchase an organizing carrying file. Collect important documents; Passport, ID/insurance cards, Social Security card, titles/deeds, tax returns, birth certificates, medical records, will, power of attorney, etc.

Digitize your family photos, diplomas, award certificates and old family videotapes, 35mm films.

Were you a collector? Keep your favorite few pieces. Digitize the remaining collection and place on a thumb drive, in the cloud or have images printed into a coffee top flip book. Or purchase a digital picture frame, turning your collection into a rotating slide show you can enjoy every day. That way, you can continue to enjoy your collection in your new space.

Do not keep multiples: crockpots, coffee makers, frying pans, sets of china, linen and serving pieces.

Shred old documents and paperwork.

Use the holidays as a time to share keepsakes with friends and family members, share with them stories that made the item special. Ask your children to drive for the next family gathering, so they can haul away the items from their old bedroom and create an opportunity for them to select from the “share” and “donate” piles.
Discard outdated medication.

A prelude to packing

Now that you have sorted through your items and color-coded what you are keeping, selling and donating, it is time to interview moving companies as well as auction/appraisal firms to help you sell the items you are not taking with you and select organizations to donate the items the auction firms cannot sell.AD
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Remember that keeping items in storage or paying to move an item into your new space will incur multiple layers of expense. For example, that large armoire will incur special packing fees, transportation and unpacking charges to your new destination. Do you really need the piece — which may end up being too big or the wrong color for your new space — when you could have purchased the
perfect new piece for the same cost?

Most of the time, people feel a sense of relief when they sell the old and start with new. Not only do they have an updated look, but more important, they have items that properly fit their much smaller space at the same cost of moving the old.

After you have sorted and packed your belongings, the next step is simply to set your move date and begin to enjoy your new life!
Anne Nouri is a Realtor, Auctioneer and Appraiser with Sorelle Realty and Prime Auction Solutions, licensed in VA, MD & DC assisting sellers. families and law firms with the sale/purchase of real estate, personal property as well as appraisal reports for insurance, estate and donation needs. 703-889-8949 Anne@PrimeAuctionSolutions.com

The post Take These Easy Steps To Downsize Without Any Hassle appeared first on The Downsizing Coach.

There are many options, and the most common is to conduct an auction or estate sale. Both methods can help achieve the same result of selling through the assets, yet it is important to first answer a few key questions to help narrow your search process.

1. Are there any special or more valuable items in the home to be sold? A collection perhaps: art, stamps, coins, jewelry, antiques, wine, etc.
2. What is your timeline to move out of the property?
3. Is the convenience of the process more important or financial gain from selling through the items?

Estate sale

An estate sale, also known as a tag sale, is an on-site liquidation process in which a coordinator is hired to tag items to be sold and set an asking price for each item. As the sale progresses over a period of one to three days, prices are negotiated and reduced to help sell the items. On the morning of the estate sale, individuals line up, take a number or use a sign-in sheet to determine the order in which they can enter, preview and purchase the items in the home.

Pros of an estate sale:

• Quick setup (one to three days).
• Quick on-site sale (one to three days).
• Ease of sale for general household items.

Cons of an estate sale:

• Strangers walking through the property.
• No state or national licensing, education, ethics, insurance or regulatory requirement for estate sale companies.
• Necessary price reductions on Days 2 and 3 as items are picked through.
• Estate sale company purchases the remaining items for pennies at the end of the event.
• Sellers don’t receive an itemized receipt of what each item sold for unless above a certain amount.
• Owner and family cannot attend the sale.

Auction

A method of selling property in a public forum through open and competitive bidding. Items sell to the highest bidder. Depending on the size of the project and the auction company that you choose, auctions can be conducted on-site, online or within a gallery. An auction isn’t strictly a method to sell more valuable items — the entire content of a home can be sold at auction.

Pros of an auction:

• Competitive bidding allows for prices to increase with higher demand.
• Online auctions can bring a larger pool of buyers, whether local, national or international.
• Helps with seller privacy and keeps crowds from coming to the home.
• Buyers can preview items online and bid live to win the item.
• For a gallery auction, items are transported and sold off-site at a sale at an auction gallery.
• Items can be marketed to a larger pool of buyers and collectors specific to the asset type who are local, national and international.
• Higher sell-through rate than an estate sale.
• There are licensing, ethics, education, insurance and escrow account requirements by most states.

Cons of an auction:

• On-site online auction can take a sizable time commitment (one to three days for cataloguing and seven to 14 days for online auction bidding).
• Gallery auctions incur a cost to move the items.
• On-site auctions can take 20 to 30 days for marketing and setup.

An auction or estate sale company will generally charge between 30 and 40 percent of the sales collected. For example, if the event had a total sale of $10,000, the seller would receive $6,000 to $7,000.

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Where do you find estate sale companies?

EstateSales.net
EstateSales.org
Each are popular sites where vendors pay to list their services and local sales are listed.

Where do you find auction companies?

Auctioneers.org, the National Auctioneers Association and your local State Auction Association website.

VAA.org, the Virginia Auctioneers Association or your local state auction association.

It’s important to select an auction company that is associated with local and national organizations to ensure they are keeping up with the latest education, code of conduct and trends.

What questions do I ask an auction or estate sale company?

Do they have a properly written contract?

A properly written contract should outline responsibilities of each party, fees, timeline for the sale and timeline to receive payment. Avoid potential problems and make sure to sign and receive a copy of your contract.

What is the experience level of the company for the type of items you will be selling?

If your sale includes collections, the company should have the experience to value and market the items properly.

Does the company hold appraisal designations or does someone on their staff?

For an estate sale, pricing is everything. One person cannot be an expert in everything; however, it is critical they have the proper training (Master Personal Property Appraiser, Graduate Personal Property Appraiser, International Society of Appraisers, American Society of Appraisers) to be able to research items. Priced too low, the item is quickly picked up and additional margin is lost. Priced too high, it will not sell and later will be discounted. At an auction, research would be conducted to provide information about the piece to help buyers outbid one another for maximum sales results. The pricing opinion is no longer as important as the auction process will help set the market value.

When will payment be made to you after the sale?

Every company has a different timeline. Make sure your contract states the number of days after the sale when you will be paid. Estate sale companies do not have any laws to follow, while auction companies are required to settle payments within 30 days in most states.

Is there a minimum sale requirement?

If your sale does not meet a certain minimum, there could be additional fees. Companies should disclose that upfront.

What is the commission amount?

Many sellers base their decision on selecting a company by the lowest commission percentage. This is generally the wrong approach, as sellers need to understand that they need to select the company who will help them realize the highest sales total. For example, if Company A sells the home content for $10,000 with a 30 percent commission and Company B sells the same content for $16,000 at a rate of 40 percent, the seller would receive $2,600 more with Company B even though the commission was higher.

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What marketing budget and platforms do they use?

A marketing budget will help your sale be publicized to the right audience of buyers. It is important to compare where and how your marketing budget is spent. This is where the experience and training of the company being interviewed is critical. An email list is not enough to attract a broad range of buyers to help you achieve the most for your items.

Do they have a current certificate of insurance?

It is important to verify that the company has liability insurance. Ask for a copy of a recent insurance certificate to be attached to your signed contract copy.

How are sales documented?

Does the company have a tagging, invoicing and point of sale system for the sale of your items? When you receive the sales results, will you be provided an itemized report or just a total? Most states require itemized sales reports from an auction company, but an estate sale company can run its reporting as it wishes.

What happens to the items that do not sell?

Will the company help donate, or resell later the remaining items? Some companies offer to purchase the remaining items for pennies on the dollar.

When work is done properly, sellers can profit nicely by conducting an auction or estate sale. It is an excellent resource to help offset the cost of the move. But sellers must take the time to ask the right questions before selecting the right firm to help them.

The last thing anyone ever wants to read in the paper a month after their sale is that an item not properly priced at an estate sale was purchased and resold at an auction for 10 times more.

Anne Nouri is a Realtor, auctioneer and appraiser with Sorelle Realty and Prime Auction Solutions, licensed in Virginia, Maryland and Washington assisting sellers, families and law firms with the sale/purchase of real estate, personal property as well as appraisal reports for insurance, estate and donation needs. She can be reached at Anne@PrimeAuctionSolutions.com.

The post Have stuff to sell because of downsizing, divorce or death? An estate sale or auction could be your answer. appeared first on The Downsizing Coach.